SME Finance Monitoring

The strategy team and Economic Intelligence Wales require a source of insight into how Welsh SMEs view, use and experience finance in a way which is comparable to a wider UK and regional dataset. This data should keep consistent sample sizes, question set and stratification to better track access to funding, growth ambitions and business performance through shifting economic conditions. This data must have the quality and repeatability for authoritative and reliable use which requires sufficient samples into sub-questions on finance uses. A key test of this is the use of datasets by our peers.

Previously, the SME Finance Monitor has fulfilled this need.

SME Finance Monitor is the largest quarterly survey in Wales without requirement for accredited researchers and project authorisation to access the granular data. Over the year, we will have access to a sample of 1,000 SMEs in Wales compared to the 500 typically achieved in the UK Government’s Longitudinal Business Survey.

The instruction from DBW to the Consultants for these specific services relating to the service is as follows:

a) Include “Development Bank of Wales” as a response option to an existing survey question for

SMEs in Wales according to eligibility criteria according to DBW’s own guidelines indicated below.

• Employing up to 250 employees
• Annual turnover not exceeding €50million
• Be located in Wales

b) Provide DBW with the raw data tables, in Microsoft Excel format, at the half year and full year period for those SMEs within the eligibility criteria outlined above.

Justification for Direct Award:

Continuity and Consistency of Longitudinal Data

The SME Finance Monitor forms a longitudinal dataset where consistency in methodology, questionnaire design, sampling approach, and data processing is essential. Changing supplier would introduce:

Variability in sampling and weighting methods

Changes in question phrasing or sequencing

Analytical discontinuity preventing reliable year on year comparison

Maintaining the same provider ensures methodological integrity and protects the value of the dataset built over several years.

Supplier Uniqueness and Specialist Expertise:

BDRC/Ipsos has highly specialised capability in SME finance market research and is the long standing producer of the UK wide SME Finance Monitor. Their expertise includes:

Proprietary data processing structures

Bespoke table formats already embedded in DBW workflows

Deep understanding of SME finance behaviour methodologies

Alternative providers would lack the ability to replicate the existing dataset format without recreating methodology at significant cost and risk to continuity.

Proven Track Record and Performance:

The supplier has delivered reliably since 2021 with:

High data quality

Timely delivery

No recorded performance issues

Strong working knowledge of DBW requirements

Changing a successful supplier introduces operational risk and is not justified where performance remains strong.

Proportionality and Value for Money:

represents good value relative to:

The provider’s specialist research expertise

Time and cost required for onboarding a new supplier

Avoided duplication in methodology redevelopment

Market norms for bespoke survey data products

The direct award maintains cost efficiency and avoids unnecessary procurement overhead.

Regulatory and Policy Considerations (Procurement Category 2023):

Under Procurement Category 2023, a Direct Award may be justified where:

There is a proven, continuous requirement

A change of supplier would compromise service integrity

The supplier holds unique specialist knowledge

There is a clear operational or technical reason preventing competition

This requirement meets all criteria.

A Direct Award to BDRC Continental/Ipsos for the 2026 SME survey data is justified based on:

Need for continuity of longitudinal data

Specialist capability and established methodology

Proven track record and value for money

Alignment with Procurement Category 2023 direct award provisions