Small UK companies winning biggest London 2012 business benefits

The latest London 2012 business engagement figures published today also show that SMEs make up nearly 90 per cent of the 18,000 companies registered on the unique ‘dating agency’ which aims to match businesses with London 2012 related opportunities.

The figures were published today at a London 2012 business roadshow in London that has attracted over 2000 businesses to events as it toured every UK region and nation over the last 12 months.

The Olympic Delivery Authority (ODA) and London Organising Committee (LOCOG) expect to allocate over £6bn of work as part of an estimated 75,000 future business opportunities covering direct contractors and their supply chains over the coming years. The London 2012 Business Network, provides information about London 2012 related business and events and links to the ‘CompeteFor’ service, a business ‘dating agency’ that matches companies to opportunities supplying London 2012 contractors. Up to a fifth of London 2012 supply chain opportunities are expected to go through the CompeteFor system.

ODA Chairman John Armitt said: 'I’ve talked to business across the UK and there is a real appetite for helping us deliver the London 2012 Games. These figures show that smaller businesses are making the running and getting the biggest benefit so far, as well as getting themselves in pole position to compete for future work in the supply chains of our major contractors. It is a challenging project and we’re working with the best of British business to keep well on track to deliver a great Olympic and Paralympic Games and a lasting legacy.'

London 2012 Organising Committee Chief Executive Paul Deighton said: 'We are impressed with the UK business response to the London 2012 Business Network since its launch in January this year. The hard work of the London 2012 procurement teams and our business development partners in the three devolved nations and each English region is truly paying off.

'With the Organising Committee's procurement for Games-time goods and services starting in earnest in 2009 there is all to play for. We are encouraged to see so many UK businesses have registered on the CompeteFor system to get well placed to make the most of this once in a lifetime business opportunity.'

Olympics Minister Tessa Jowell said:'The fact that 70 per cent of the 650 companies that have already won work supplying the Games are small- and medium-sized firms demonstrates the potential for the business benefits of London 2012 to provide a boost to the whole economy.

'Since January this year, companies have been signing up for Competefor at a rate of 500 per week, a clear illustration of the value of the system and the determination of British business to grasp the economic opportunities the Games offer.

'Beyond delivering London 2012 on time and on budget, our ambition is to use the Games to raise skills levels, tackle worklessness and promote long term growth leaving a legacy of better trained workers and a more efficient business environment.'

Minister of State for the Department for Business, Enterprise & Regulatory Reform, Pat McFadden said: 'This is not just the greatest sporting festival on Earth but it is also a huge investment and business opportunity for all both large and small businesses throughout the UK. These figures show that British businesses are showing great Olympics form - smaller firms as much as larger ones. The Government's business support service Business Link has already helped businesses of all sizes, all-around the UK get ahead of the game.'

Lord Digby Jones, Minister for Trade and Investment said: 'International sporting events offer huge opportunities for UK businesses. However size doesn’t matter when it comes to British companies winning business in the 2012 London Olympic and Paralympic Games. Hundreds of small and medium-sized businesses have already won contracts with billions of pounds of contracts still to win. Large or small, winning that business for 2012 will provide a springboard for global growth, and an opportunity to promote our capabilities on the international stage'

UK business already benefiting

• Over 650 contractors have won work supplying the ODA worth over £2 Billion in total. Over 70 per cent are small and medium sized.
• *Just under half (46%) are based outside of London.
• More than one in ten (12%) is based in the Olympic Park Host Boroughs.
• 98% are based in the UK.
• Over 18,000 companies have registered on CompeteFor, more than three-quarters (78%) are small companies with less than 50 employees and nearly 90% have less than 200 staff.
• Two-thirds (67%) of companies registered on CompeteFor are based outside of London.
• Even at this early stage dozens of opportunities supplying ODA and its contractors, LOCOG and the LDA have been advertised on CompeteFor and all ODA contractors that have been awarded venue or infrastructure contracts have registered as buyers on CompeteFor.
• Over 2,000 businesses have been automatically referred to their local Business Link or equivalent service in Wales, Northern Ireland and Scotland for business improvement support.
• Over 2,000 businesses attended the Construction Commitments roadshow or launches of the London 2012 Business network to discuss London 2012 opportunities in every UK region and nation over the last 12 months.
• 10,000 supplier guides have been issued to companies interested in supplying London 2012.

How CompeteFor works

ODA and LOCOG are advertising their direct contract opportunities online through CompeteFor, which is co-funded by Regional Development Agencies, and direct London 2012 contractors appointed will be encouraged to advertise their supply chain opportunities through the system. For example all contractors that have been awarded ODA infrastructure or venue contracts are registered as buyers on CompeteFor and one is currently advertising for a supplier to tar over 300 metre square of sheet metal piles.

Companies at every level of the London 2012 supply chain will be encouraged to advertise their supplier opportunities through CompeteFor.

After registering basic company information any interested business can view the opportunities advertised. Companies can then complete a business profile, which involves answering a series of simple questions, to be able to compete for opportunities.

A company’s business profile is automatically tested against a small number of minimum standards in areas such as health and safety. If these requirements are not met the company is automatically referred to tailored business support to help improve their performance. This service is provided by Business Link in England and the support services in Wales, Northern Ireland and Scotland.

Once a company’s profile is successfully published on CompeteFor they are automatically matched to opportunities which suit their business and invited, by email, to apply for them by filling out a short, tailored application form. The buyer advertising the contract then selects a shortlist of companies and invites them to formally tender through the buyer’s own procurement system.

Details of the winning bidder(s) are published on CompeteFor and unsuccessful bidders receive feedback from the buyer. Throughout the process local business support agencies are on hand to help companies maximise their chances of success.

Notes to editors:

Over 300 businesses have registered to attend the London 2012 Construction Commitments roadshow at the Business Design Centre today (5 June). The roadshow has visited every UK nation and region over the last 12 months.

*Of the 82 per cent of ODA suppliers where company size is known (540), 71 per cent are small- or medium-sized companies.

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For further information please contact the Olympic Delivery Authority Press Office on +44 (0)203 2012 700.

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