Can Small Businesses Compete on Social Value
5 min readBy Kim FraterPublished 2026-07-27
“I believe public procurement shouldn’t be complicated. Every guide I write explains the process in plain English so you can bid with confidence.”
Hi, I'm Kim. If you're new to public procurement, don't worry, this guide will walk you through everything you need to know in plain English.
One of the biggest myths in public procurement is that large organisations automatically score higher for social value.
I hear it all the time.
"We're only a small business."
"We can't afford huge community investment programmes."
"The national companies will always beat us."
The truth is, that's often not how social value is evaluated.
In fact, many SMEs are naturally well placed to deliver meaningful social value because they're already embedded in the communities they serve.
The challenge isn't competing with larger organisations.
It's recognising your strengths and explaining them effectively within your tender response.
Bigger Doesn't Always Mean Better
Large organisations often have dedicated social value teams, published strategies and significant budgets.
That can seem intimidating.
But buyers don't automatically award marks because a company is large.
They assess whether the commitments are relevant, credible and capable of being delivered and often they will take the size of your company into account.
A £10 million turnover doesn't guarantee a high score.
A well-planned, locally focused response from a smaller business can be just as persuasive.
SMEs Already Deliver Social Value
Many small businesses are already creating social value without describing it that way.
Think about your own organisation.
Do you:
- employ local people?
- buy from local suppliers?
- support community organisations?
- provide flexible working?
- invest in staff training?
- reduce waste?
- sponsor local events?
- offer work experience?
If so, you're already delivering social value.
The challenge is recognising these activities and presenting them in a structured way that relates directly to the contract.
Local Knowledge Is a Real Advantage
One area where SMEs often outperform larger organisations is local understanding.
You may already know:
- local schools
- community groups
- charities
- suppliers
- employment initiatives
- voluntary organisations
That local knowledge allows you to create commitments that feel genuine rather than generic.
For example:
Instead of saying:
"We'll support local employment."
You might explain:
"We'll advertise all vacancies through the borough's employment partnership and local job centre, helping create opportunities for residents within the contract area."
That feels much more connected to the buyer's community.
Buyers Value Authenticity
Experienced evaluators read hundreds of tender responses every year.
They quickly recognise when commitments feel copied from another bid.
A smaller organisation often has an advantage because its social value activities are closely connected to the way it actually operates.
Authenticity is persuasive.
If you're already supporting your local community, explain what you do and why it matters.
Don't try to imitate the language of large corporate organisations.
You Don't Need a Huge Budget
Another common misconception is that good social value requires significant financial investment.
In reality, many valuable commitments cost very little.
For example:
- offering work experience
- mentoring local students
- supporting local recruitment
- providing careers talks
- volunteering professional expertise
- using local suppliers
- improving accessibility
- reducing waste
These initiatives often create meaningful benefits without requiring large budgets.
Evidence Is More Important Than Size
Imagine two responses.
One organisation promises to deliver ten different community initiatives but provides no evidence that it has ever done them before.
Another organisation describes three initiatives it already delivers successfully, supported by measurable outcomes and a clear implementation plan.
Which response is likely to inspire more confidence?
Buyers generally favour commitments they believe will actually be delivered.
Evidence builds credibility.
Play to Your Strengths
Rather than trying to compete with national organisations on scale, compete on relevance.
Focus on what makes your business different.
Perhaps you're:
- family owned
- locally based
- flexible
- able to make decisions quickly
- closely connected to the community
- able to provide a more personal service
These characteristics can all support a strong social value response when they're linked to the contract.
Don't Overpromise
One mistake some SMEs make is trying to match the scale of larger organisations.
That can lead to unrealistic commitments.
Remember, buyers are looking for confidence, not exaggeration.
Five achievable commitments that you know you can deliver are far stronger than twenty ambitious promises that may never happen.
Think Beyond Money
Social value isn't simply about writing a cheque.
Time, expertise, opportunities and partnerships can often have a greater impact than financial donations.
For example, helping a local school prepare students for employment or providing specialist advice to a community organisation may deliver lasting benefits at very little cost.
Think about the skills and resources your organisation already has.
Those are often your greatest social value assets.
A Simple Checklist for SMEs
Before writing your next social value response, ask yourself:
- What are we already doing that benefits our community?
- Which of those activities relate to this contract?
- Can we measure their impact?
- Can we expand them during the contract?
- Can we provide evidence from previous work?
If you can answer those questions, you've already got the foundations of a strong response.
My Final Thoughts
Small businesses shouldn't see social value as a barrier to winning public sector contracts.
In many cases, it's an opportunity to demonstrate the qualities that make SMEs so valuable: local knowledge, close community connections, flexibility and genuine commitment.
The strongest social value responses aren't necessarily written by the biggest organisations.
They're written by organisations that understand the buyer's priorities, make realistic commitments and clearly explain how they'll deliver them.
If that's how your business already operates, you're in a stronger position than you might think.
Thanks for reading.
I hope this guide has made public procurement a little easier to understand.
Kim Frater
Founder, Bid Trawler
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