B2B Payments

Survey: Large Firms Have No Desire To Increase Amount of SME Contracts

Small businesses are sometimes in danger of being overshadowed by their larger counterparts, but if a recent survey is any indication, the smaller companies might have difficulty securing contracts with bigger businesses.

According to a survey carried out by IFF on behalf of Achilles, only 12 percent large companies plan to expand the amount of small businesses they contract with. Additionally, 67 percent of surveyed large firms said they regularly use small suppliers, but those organizations typically are awarded just up to one quarter of all deals.

As reported by Supply Management, 146 procurement managers at companies with more than 250 employees were interviewed for the report.

Not only did the surveyed firms state that they were more likely to use small suppliers, but 26 percent of buyers said they were concerned about the financial stability of SMEs.

“There were also worries about adherence to standards and regulations, although benefits such as flexibility, efficiency and being closer to customer needs were cited as advantages in contracting with small businesses,” the news source stated.

“What’s Hot” is aggregated content. PYMNTS.com claims no responsibility for the accuracy of the content published by the original source.

Click to comment

TRENDING RIGHT NOW