UK Ministry of Defence’s SME action plan

Why SMEs should work with us

We work with around 12,000 SMEs through our supply chain already, and we want to ensure that those SMEs, and any others wishing to join the sector, are able to work and operate effectively and with ease. Underpinning our action plan are four key strategic objectives:

1. Champion policies and behaviours which simplify processes, from concept to contract;
2. Increase our total spend with SMEs by 50% by summer 2028;
3. Improve the diversity and resilience of the UK defence supply chain by requiring better practices from Defence and its major suppliers;
4. Deliver on this national intent through local networks such as the regional defence and security clusters, partner organisations, academia, and local government.

Links to departmental commercial opportunities

Direct Opportunities, Frameworks, and Joining the Supply Chain

Information on how to do business with Defence can be found on the dedicated Procurement at MOD web page. This includes information on frameworks, portals, government grants and funding. This page also covers how to register your interest in working with our strategic suppliers. Working with these organisations is an excellent way to get involved in defence procurement, from research and development funds to sub-contracting opportunities.

For further resources, please refer to the Office for Small Business Growth website here Defence Office Home Page.

Departmental supplier events

We hold a wide range of supplier engagement events throughout the year. You can keep up to date on these events by following our LinkedIn ‘National Armaments Partnering’, and by registering on the Defence Sourcing Portal.

Major events include:

• Defence Procurement and Supply Chain Summits (DPRTE)
• The Defence and Security Equipment International Exhibition (DSEI)
• The Navy Leaders Combined Naval Event (CNE)
• RUSI Land Warfare Conference
• Farnborough International Airshow

We also hold and attend smaller-scale events such as defence roundtables, regional conferences, and webinars throughout the year.

Our actions and milestones

Policies & entry points

In line with Defence Industrial Strategy commitments, the Office for Small Business Growth was stood up in January 2026. Our contact centre, anonymous helpline and website are all now live. We will continue to improve the Office based on direct feedback from SMEs, from industry events and from workshops, to test, trial and adjust our services and policies.

The SME Commercial Pathway is also now public. The Pathway captures the full range of commercial levers already available internally which can benefit SMEs.

Going forward, we will:

• Ongoing. Advise, shape and grow our SME base by providing them with a simple and more effective means of contacting us to resolve issues, by offering tailored support, by signposting export markets and investment opportunities, and by sharing resources.
• Ongoing. Champion local support and interventions available from our partners in trade associations, regional defence and security clusters, academic institutions and other delivery organisations, as well as colleagues across national and local government, as a networked approach to service delivery.
• Ongoing. Promote a ‘Think-SME’ culture throughout the organisation by using governance forums to hold seniors to account, by tackling bias or risk aversion towards SMEs, by providing constructive feedback for failed SME bids, and by addressing poorly written requirements.
• Starting Q1. Reduce unnecessary paperwork where possible for SMEs when bidding on defence work, such as repeating inputs across different platforms and portals, or disproportionate terms and conditions in contracts.
• Starting Q2. Map our entry points, portals and marketplaces with a simple, publicly available guide. We will consider consolidation or cross-platform sign-on. We will also help SMEs to save time, money and effort by increasing the visibility of upcoming opportunities.
• Starting Q3. Review our approach towards issues such as social value, offsets, consortia bids and open frameworks, ensuring that SME views and needs are heard.
• By Q4. Provide a series of digital tools through our website to facilitate self-help or out-of-hours assistance, alongside routinely updated written guidance relating to procurement processes and policies.

Spend & Investment

Defence is committed to increase spending with British defence industry, including with SMEs. This investment will deliver the stability that underpins long-term economic growth by stimulating productivity and market competition. To deliver this, we will:

• Ongoing. Represent the voice of SMEs in the new Defence Reform model ways of working, including early market engagement programmes and requirement setting. We will ensure close alignment with the needs of our Armed Forces and, where appropriate, we will bolster the supplier relationships already in place.
• Starting Q1. Set internal spending targets across all portfolios, baselined on existing spend with SMEs and paired with a stretch target based on the perceived potential for growth within the market. We will assist internal teams to reach these targets and hold poor performance at senior leadership levels to account.
• Starting Q2. Improve reporting tools for tracking sector growth and SME spend, allowing us to better direct policy interventions and future targets.
• Covering Q1–4. In support of the upcoming Defence Finance and Investment Strategy, we will grow our relationships with key sector stakeholders, from venture capital to high street banks. We will identify ways to make it easier for the financial sector to back defence SMEs, with additional clarity that ESG regulations do not hinder defence finance or investment.

Direct suppliers

Defence works closely with a range of direct suppliers, from the manufacture of submarines to the delivery of IT services. In turn, these suppliers are supported by the supply chain, which nearly always contains SMEs. The supply chain is therefore critical to delivering on our commitment to spend more with SMEs and to support them in meaningful ways. With our direct suppliers, we will:

• Starting Q2. Establish a Strategic Partners and Suppliers pledge to, where possible, align relevant action plans, spend projections, and SME support to work collaboratively for the ecosystem rather than in silos. We will use current SME spend as a baseline, and work together on how to increase that spend going forward.
• Starting Q2. Encourage and promote SME-focused initiatives which benefit both the SME and the needs of the partner or supplier, such as joint R&D projects, skills and apprenticeship programmes, or dedicated resources.
• Starting Q3. Re-invigorate and expand the SME Champions network with our strategic partners to embed positive behaviours in their respective organisations, to drive their own programmes to remove barriers for SMEs, and to create a shared advocacy network across the sector.
• Through Q3–4. Work with and support Strategic Partners through their account reviews and target monitoring sessions to ensure the right data is captured and acted upon, the right interventions are prioritised, and the right culture is in place to achieve our shared goals.

The SME ecosystem

The Defence Office for Small Business Growth will work closely with the following delivery partners to embed a ‘Think SME’ culture across the department.

International Exports

The Defence Exports Unit helps UK defence and dual-use companies of all sizes to export products, technology and services. This includes an SME engagement team which coordinates business support for UK SMEs producing defence or dual-use capabilities through the Export Faculty, a free government resource that provides targeted export support, strategic insights and direct access to global buyers. We will work with International Exports to build exportability in from the start of product development.

Accelerating Commercial Pathways

The Accelerating Commercial Pathways (ACP) programme has been launched to drive substantial changes to our commercial ways of working and culture, in collaboration with our industry partners. These pathways are improving MOD’s ability to exploit the full range of commercial approaches, including harnessing the flexibilities and opportunities presented by the Procurement Act, to drive pace and innovation into procurements. This includes an SME-specific commercial pathway, which is publicly available.

Commercial X

Commercial X is a transformation programme which seeks to overhaul and simplify our procurement processes to get groundbreaking innovation into our hands, faster. They are a team of commercial officers, experienced with innovation and digital solutions, delivering contracts up to £50m and under 2 years, at pace. Commercial X delivers the Neutral Vendor Framework for Innovation, the Dynamic Marketplace, and the Defence Unicorn Fund.

UK Defence Innovation (UKDI)

UKDI supports SMEs, start-ups, and non-traditional defence and security suppliers to develop and deliver pioneering capabilities. UKDI holds a significant budget to invest in companies with real potential. UKDI also administers the Regional Defence and Security Clusters across the UK to support businesses to access advice and opportunities and runs the Defence Innovation Ideas Marketplace.

Defence Science and Technology Laboratory

Dstl, through its Co-Creation Portal and its sister organisation, Ploughshare, works with SMEs to creatively solve issues facing Defence. Dstl works closely with investors, academia, and partner organisations to take a new idea into a fully-fledged and commercially viable capability.

Defence Growth Deals, Skills, and Apprenticeships

Defence Growth Deals are a £250m programme of specific interventions that not only harness a region’s defence and dual-use strengths but also ensures they are well-placed to support the sector, such as sufficient provision of a skilled workforce. Through initiatives in the £182m Defence Industrial Strategy skills package, and continued commitment to graduate programmes and apprenticeships, we will be supporting the entire defence supply chain to upskill, grow and thrive.

Defence Industrial Joint Council (DIJC)

The DIJC ensures that the SME voice is heard at all levels, from the collaborative working groups where SMEs help shape defence policy, to our Communications Forum where SMEs have the chance to hear from, and reply to, senior leadership on our upcoming requirements, to SMEs and Trade Associations holding seats on the ministerial Top Council.

Read the full action plan below.

Source: UK Government: https://www.gov.uk/government/publications/mod-small-and-medium-sized-enterprise-sme-action-plan/ministry-of-defences-small-and-medium-sized-enterprise-sme-action-plan 

The Critical Supply Group consists of companies and professionals committed to secure and resilient critical supply chains. CSG is managed by MAP UK & International. For more details, including how to get involved, or to make contact with any of the entities involved, please email info@mapukinternational.com.