Government agencies play a crucial part in the economy by purchasing goods and services.
While big business is frequently featured in the news, small-scale companies comprise most enterprises operating in Western Australia — 97 percent. They are the largest contributors to the economy, contributing greater than $50.1 million to private sector activities every year.
You might be shocked to discover that the 227,000 small-scale businesses in the state employ more workers than the retail, mining, and agricultural industries and those used by the WA Government combined. They compete against big corporations that benefit from the advantages that they have brand awareness, bigger buildings, and large budgets for advertising. They don’t do this by spending money on flashy advertising campaigns but by focusing on the quality of their offerings.
The advantages of purchasing from a small company include the following:
Personalization
It is rare to visit a major box store and be welcomed by name or the person on the other end of the telephone recall the last item you bought. But when you purchase from a small company, you’re not just another number but a unique client they recognize and value. When you establish a lasting relationship with your small-business supplier, you will also come to know what you can expect from them.
Experience
Small businesses are often governed by individuals with extensive expertise and knowledge in their field of expertise. You will be assisted by a superior and more knowledgeable staff member than in larger companies, allowing you to gain better insight and support.
Quality and value
While some large companies have purchasing power that permits them to provide discounted rates for goods, they benefit from higher prices for the most expensive locations and advertising campaigns. Smaller companies typically have lower overheads for operating costs. You could be surprised at the added worth you get from your investment when you decide to invest the money in a smaller company.
Effect of flow
Small businesses that win your business spend their cash with other small-sized firms. Bookkeepers, accountants, lawyers, marketing companies, and couriers all gain from spending money in small companies -and ensuring that cash flows throughout WA’s WA economy.
What role does government play?
WA is crucial to fulfill small-scale businesses in the State government sector. Not only do we offer advocacy, development of skills, and support directly to small businesses through the SBDC and other government agencies, but they also play a crucial part in purchasing items and services.
With the recovery of WA’s economy from COVID-19 as a top priority, with State Government expenditure forecast at $32.9 billion for 2022-23, the state’s public sector must be leading the way when it comes to choosing to invest money into small businesses since this is where the bulk of job growth and growth is expected to be created when we begin to restore our economic system. With shorter payment times from government agencies to companies that were imposed this year public sector could be a good example to larger companies of what it means to be a good corporate citizen.
If you’re responsible for purchasing on behalf of a government agency in the state, consider your options regarding the supply of goods and services. Suppose you have the opportunity to select a small-scale business. The benefits for our economy are huge.
