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SMEs Encouraged to Integrate Social Value with New Procurement Guide

Procurement, Social Value Training

Published 18th Nov 24 - by Gemma Laws

A new comprehensive guide to help Small and Medium Enterprises (SMEs) and procurement authorities effectively integrate social value into SME operations has been launched today. Developed in collaboration between Supply Chain Sustainability School and Cardiff Business School, and delivered by Action Sustainability, the guide aims to support SMEs in creating social value while navigating procurement processes in both the public and private sectors.

Why SMEs Struggle to Deliver Social Value

Despite representing 99.9% of all businesses in the UK and contributing significantly to employment, SMEs often struggle to embed social value in their operations. Challenges such as limited resources, complex procurement processes, and lack of clear guidance frequently prevent SMEs from fully realising their social, environmental, and community impact. The new guide, Embedding Social Value in Procurement: A Practical Guide for SMEs, is designed to address these issues, providing SMEs with actionable strategies, tools, and insights to help them understand and deliver social value effectively.

“As SMEs increasingly shape the future of our economy, it’s essential that their contributions to social value are recognised and embedded into procurement practices,” said Vaishali Baid, Social Value Lead & Senior Consultant, Sustainable Procurement at Action Sustainability. “This guide provides SMEs with the tools and strategies to incorporate social value into their operations, ultimately creating long-term benefits for their businesses and the communities they serve.”

Practical Tools and Resources to Empower SMEs

The guide equips SMEs with a variety of practical resources, including:

  • A checklist to integrate social value into operations.
  • Strategies for overcoming common challenges such as limited resources and lack of understanding.
  • Advice on aligning social value with local community needs and business goals.
  • Recommendations for procurement authorities on how to engage with SMEs to maximise social impact in procurement processes.

Dr Jane Lynch, Professor of Procurement for the Logistics and Operations Management Section at Cardiff Business School, added, “This guide translates the concept of social value into clear, actionable steps SMEs can apply immediately. Cardiff Business School is committed to equipping SMEs with research-based tools that empower them to make meaningful contributions, both to their success and to the communities they operate within.”

Based on Extensive Research and Industry Best Practices

The guide draws on extensive research, including surveys and focus group discussions with SMEs across diverse sectors such as Civil Engineering, Rail, Infrastructure, and Manufacturing. It also incorporates insights from industry best practices, highlighting methods SMEs can use to engage locally, create jobs, and adopt sustainable practices.

As procurement authorities increasingly align purchasing decisions with social value goals, SMEs are in a unique position to drive positive change within their communities. However, existing challenges like resource constraints and complex procurement processes can hinder SMEs’ efforts. This guide aims to support SMEs in overcoming these barriers and in making a meaningful impact.

To access the full guide and additional social value resources, register for free membership on the Supply Chain Sustainability School website, then visit this page.