SMEs might be squeezed out of the market for contracts relating to the 2012 Olympics, one industry body fears.

Simon Briault of the Federation of Small Businesses said that potentially the Games offered a "really good opportunity" for SMEs.

"However," he went on, "there is, at the moment, quite a bit of scepticism among our members and among small businesses generally, that they will actually be able to get a piece of the pie.

Mr Braiult said that he feared that all the contracts would go to big companies and the firms that made up their supply chains.

Earlier this month the Olympic Delivery Authority launched a website called CompeteFor, which is aimed at encouraging SMEs to tender for contracts.

Foreign investment agency Think London said that the Games should lead to SMEs and larger corporations working together with the common goals of creating jobs and changing the look and feel of the city.

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