The importance of the public sector for UK businesses

Nearly half of all UK companies have customers in the public sector (49%). Eight out of ten of these companies say that their ability to compete on price is the most important factor affecting purchasing decisions by the public sector. Only a small handful of companies believe that the public sector comes to them for innovation.

The details

How many UK companies have public sector customers?

49% of UK companies have customers in the public sector.

How is the public sector perceived to make purchasing decisions?

81% of UK companies believe their public sector customers make purchasing decisions based on price or cost. Just 15% of firms believe innovation is a significant factor influencing public sector purchasing decisions.

Design-led businesses were most likely to have public sector customers who based purchasing decisions on innovation: this was true in 21% of cases.