Securing public sector contracts represents a significant opportunity for growth for small and medium-sized enterprises (SMEs). Winning a government contract not only establishes a substantial revenue stream for SMEs, but also ensures long-term stability and security. The reliability and payment guarantee linked to government contracts create a crucial financial cushion for SMEs, enabling them to plan and strategise for the future with a heightened level of certainty, fostering an environment conducive to sustainable growth and development. 

In recent years, the UK government has pledged to allocate £1 in every £3 of its £300 billion annual procurement budget to SMEs. This commitment, as part of an overarching policy to boost the SME sector, demonstrates the government’s recognition of the crucial role that these businesses play in the economy. By directing a major portion of public sector spending towards SMEs, the government is creating opportunities for these businesses to flourish and contribute to economic growth. 

Additionally, the incoming procurement reform bill presents even more opportunities for SMEs to engage in public sector bidding. The bill is intended to streamline and simplify the procurement process, making it more accessible for smaller businesses. This is expected to result in an increase in the number of SMEs participating in public sector contracts, further enhancing their potential for growth and success. 


The Benefits of Public Sector Contracts

Long-Term Revenue and Guaranteed Revenue  

One of the most significant advantages of winning public sector contracts is the long-term and guaranteed revenue they provide. Unlike private sector contracts that may be short-term or subject to market fluctuations, public sector contracts often span several years, ensuring a steady income stream for businesses. This stability allows SMEs to plan for the future, invest in their growth, and expand their operations confidently. 


Gain Experience and Create Partnerships 

Public sector bidding is an essential avenue for businesses to build their experience. This process of submitting proposals for government contracts allows companies to learn how to navigate the complexities of the public sector. Each bid submitted, regardless of whether it is successful or not, provides a valuable learning experience. 

Through this experience, businesses gain a deeper understanding of the bidding process, the requirements of government contracts, and the ways to make their proposals more competitive. This knowledge is extremely beneficial as companies can leverage it in future bids, increasing their chances of winning contracts. 

Furthermore, the experience gained through public sector bidding can also pave the way for valuable partnerships. Working on government contracts often involves collaborating with other businesses, fostering relationships that could lead to future joint ventures or strategic alliances. These partnerships can further strengthen a company’s position in the market, providing additional resources and support to take on even larger contracts. 


Blockers to SME Bidding 

While the benefits of winning public sector contracts are clear, SMEs often face significant obstacles when it comes to bidding for these contracts. These obstacles often result in SMEs missing out on opportunities with the public sector to larger, more established businesses.  


Limited Resources 

Limited resources, both in terms of finances and manpower, can make it challenging for SMEs to compete with larger, more established companies. SMEs may struggle to invest the necessary time and effort required to prepare and submit bids, as it can be a time-consuming process that requires gathering a lot of information and producing extensive documentation within tight deadlines. This can be particularly challenging for smaller businesses with limited staff and other operational demands.  


High Costs 

Additionally, the costs associated with preparing and submitting bids for public sector contracts can pose a significant challenge for SMEs. These costs can include everything from the time spent researching and preparing the bid to the money spent on hiring a professional bid writer. For larger companies, these costs represent a small fraction of their overall budget. However, for SMEs operating on tighter budgets, these costs can be a significant burden. 


Levelling the Playing Field 

Fortunately, advancements in technology, such as generative AI, are levelling the playing field for SMEs. At AutogenAI, our generative AI solution is transforming the way businesses approach the bid writing process for both private and public sector contracts. By automating the creation of unique, high-quality content, AutogenAI can reduce the time it takes to get to a good first draft of a bid by up to 342%. This means SMEs can spend less time on the bidding process and more time on delivering valuable services to their customers and freeing up their limited resources.  

By automating the creation of unique, high-quality content, AutogenAI provides a significant competitive advantage for SMEs by giving them the opportunity to compete head-on with bigger corporations for government contracts by significantly reducing the time, cost, and effort it takes to create a compelling, winning bid. 


Improved proposal accuracy and ensured compliance 

Critically for public sector bidding, AutogenAI helps to significantly improve proposal accuracy and ensure compliance by ensuring the proposal meets the contract requirements and specifications. It can identify areas of non-compliance or missing information, ensuring that points are not dropped for incomplete answers. 

By enabling companies to generate high-quality, compelling bids quickly, AutogenAI allows organisations to focus on other important aspects of their proposal such as their commercial strategy, their partnering strategy or preparing for their tender presentation. 


Reduced workload and stress 

The demanding nature of public sector bidding can often lead to burnout and excessive workloads, which can adversely impact your teams well-being and work-life balance. By automating the more time-consuming, repetitive parts of the bid process, AutogenAI can help to alleviate these issues. 

These benefits can also greatly extend beyond professional bid writers. Particularly in smaller businesses, bid writing tasks are often assigned to staff members from other departments who may not have the necessary expertise. For example, individuals from operations or sales departments may be tasked with contributing to bid proposals. 

With AutogenAI, these staff members are freed up from the bulk of bid writing responsibilities. This not only increases their productivity but also allows them to devote more energy to their core responsibilities, benefiting the overall functioning of the business.  



The shift towards embracing generative AI for bid and proposal writing brings numerous benefits to businesses and government agencies alike. For SMEs, it enables them to compete for public sector contracts head-on with larger corporations, increase their revenue, and ultimately strengthen their market presence. For the government, an increase in SME bidding means that they can now evaluate a wider range of potential suppliers, including small businesses that may possess new, unique expertise or innovative solutions. This increased diversity leads to better public services as government agencies have access to a broader pool of talents and ideas. 


To learn more about how AutogenAI can help your business break into public sector bidding, contact us today.