Both the Strategic Defence Review (SDR) and the Defence Industrial Strategy (DIS) place Small and Medium-sized Enterprises (SMEs) closer to the centre of British defence planning than at any point since the end of the Cold War. The reasoning is straightforward. If operational requirements now change in weeks rather than years, the United Kingdom (UK) needs a supplier base able to adapt at that tempo, and the majority of the firms capable of doing so are small.
His Majesty’s (HM) Government has begun to act on this. On 21st July 2026, at the Farnborough International Airshow, the Ministry of Defence (MOD) published its SME Action Plan, committing to raise annual spending with SMEs by £2.5 billion to £7.5 billion by summer 2028, a 50% uplift on the current baseline. It builds on the Defence Office for Small Business Growth, which opened in January 2026. The plan is candid about the scepticism it will meet, conceding that similar undertakings have been made before without much changing.
Two days later, the Council on Geostrategy convened a Defence Talks Live panel at the airshow, in partnership with ADS Group and hosted by BAE Systems, to examine what government, industry, and academia would each need to do differently for those commitments to translate into deployable capability.
For this special edition of the Big Ask, Britain’s World has departed from the usual format. Rather than putting a single question to a group of experts, we asked three of the Defence Talks Live panellists a different question, each drawn from where they sit in the system: the trade association representing industry, the SME and former end user, and the prime contractor.
Defence Director, ADS Group
If you could change one thing in the system tomorrow to make defence more accessible to SMEs, what would it be?
There is no doubt that the last few months have been challenging for SMEs across the defence sector. As the trade association representing industry, where more than 95% of our members are SMEs, ADS understands the barriers these businesses face. Whether accessing finance, navigating procurement processes, or dealing with regulatory complexities, the underlying challenge remains the same: companies need greater certainty about where future opportunities will come from. Defence procurement must become faster, more transparent, more predictable, and easier to navigate.
The SME Action Plan, launched at Farnborough International Airshow, was a welcome step forward because it acknowledges many of the issues that industry has been raising for years. However, the true test will be in its delivery. SMEs do not need another list of good intentions; they need clear evidence that real change is coming.
At present, the plan does not yet provide the level of detail or measurables needed to demonstrate adequately just how these ambitions will be achieved. There is limited information on delivery mechanisms, measurable outcomes, resource allocation, or how some of the longstanding structural and cultural barriers within defence procurement will be addressed, including the continued increase of single source procurement.
If greater clarity can be provided, the opportunity is significant. Faster procurement, clearer pathways into defence, and the removal of unnecessary barriers would help some of the most innovative companies in the sector to bring their technologies to market more quickly. Industry has consistently shown its willingness to support this agenda. The challenge now is to turn what is a positive and welcomed policy intent into practical outcomes that strengthen sovereign capability, accelerate innovation, and deliver operational advantage for the UK and its allies.
Founder and Chief Executive, SDO Associates
What practical steps can SMEs take now if they want to be credible partners in delivering capability at pace?
To become credible partners in delivering defence capability at pace, SMEs must demonstrate more than technical innovation. They need to show that they are commercially prepared, operationally relevant, and capable of reducing risk for the MOD, prime contractors, and supply chain partners.
This begins with clearly defining the defence problem being solved. SMEs should translate technical features into operational outcomes; identify the likely user or capability owner; and explain how the solution could be trialled, integrated, scaled, and supported. A concise capability statement, relevant case studies, test results, and evidence of technology maturity will carry considerably more weight than broad claims about innovation.
Organisational assurance is equally important. Proportionate quality, cyber security, information management, insurance, and governance arrangements help to demonstrate that the business will not introduce unacceptable programmes or supply chain risk. Depending on the opportunity, Cyber Essentials, ISO 9001, and Joint Supply Chain Accreditation Register (JOSCAR) registration may strengthen credibility with larger defence organisations.
SMEs should also engage before formal tenders appear, monitoring requests for information, prior information notices, acquisition pipelines, and contract awards. This provides time to understand emerging requirements, build relationships, and determine whether the best route is through the MOD, a prime, a systems integrator, a framework, or an innovation pathway. Partnerships can add integration, manufacturing, testing, and through-life support capability, but responsibilities, liabilities, and Intellectual Property (IP) should be agreed early.
Ultimately, delivering at pace starts with preparation. The SMEs most likely to succeed will be assured, visible, commercially realistic, and ready to scale.
Group Technology Director, BAE Systems
How do you address SME concerns around IP while still enabling meaningful collaboration across the defence ecosystem?
In a rapidly changing and increasingly contested world, strong and resilient partnerships across the defence ecosystem have never been more important. If we are going to accelerate new technologies into service and build the industrial capacity needed to respond to future threats, HM Government and both large and small businesses need to work together effectively.
SMEs play a vital role in that ecosystem. Innovation exists across the defence sector, but SMEs often bring specialist expertise, agility, and, in some cases, exciting new capabilities with the potential to transform current operational capabilities. To unlock that potential, SMEs must have confidence that both their intellectual property and their fledgling business will be respected, protected, and valued.
Building that confidence starts with openness and trust. From the outset, honest conversations are needed about what matters most to each SME, the rest of the supply chain, and the government customer; how ideas and technologies may be applied; and the safeguards that will be in place.
Joining the defence supply chain offers big opportunities to SMEs. Large defence companies like BAE Systems play an important role helping them to navigate complex military procurement processes, while giving customers the assurance they need. By integrating startup technologies into complex programmes at scale, SME expertise can be connected with the capabilities that customers need.
Building that successful collaboration requires a focused approach, which is at the heart of the SME Action Plan. This simplifies onboarding, improves visibility of future opportunities, and provides mentoring and specialist support. It builds on BAE Systems’ longstanding relationships with more than 2,000 British SMEs and annual investment of more than £900 million across its UK supply chain.
When partnerships are built on trust, everyone benefits. SMEs are better able to grow and innovate, and established organisations gain access to new ideas and capabilities. Together, we can strengthen the resilience, competitiveness, and long-term capability of the British defence industrial base.
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