UK releases SME Action Plan

The UK has released its SME Action Plan, a paper outlining how the government intends to support smaller defence companies, although much of it highlights previously announced initiatives.  

The SME Action Plan – published by the Ministry of Defence (MoD) on 21 July – will be implemented by the Defence Office for Small Business Growth (DOSBG), an MoD organisation to support SMEs. However, DSEI Gateway understands the office will not be fully operational until the end of the year.  

The action plan was previously touted to deal with some of the “silly rules” SMEs face in defence, Tim Ketton-Locke, Director of the DOSBG said at DPRTE in Farnborough, UK on 26 March.   

While the plan does note that the UK intends to increase its spending with defence SMEs by GBP2.5 billion by summer 2028, this figure was first announced by the government in August 2025. 

Similarly, the plan says that a new Business Growth Service will “simplify finding advice and support”, although this service was first announced in December 2024 and launched in June 2025.  

The plan also reiterates that GBP4 billion has been made available in financial support for UK entrepreneurs, an initiative launched in July 2025 by the country’s Department for Business and Trade.  

What new policies have been announced in the action plan?  

Although the plan has a focus on existing initiatives, it does say that the MoD has begun to reduce “unnecessary paperwork” for SMEs, for example repeated inputs across the bidding process.  

Emphasising the new initiatives included in the plan to DSEI Gateway, the MoD said that a 'Strategic Partners and Suppliers' pledge is being established to increase collaborative work across defence and improved tools will be used to track sector growth and SME spend, enabling more targeted interventions.  

Despite this progress, less detail is provided for other measures. The plan says that while a publicly available guide will map “entry points, portals, and marketplaces” will be published, the guide's name and date of release have not been shared.  

Additionally, the MoD says that it will increase the visibility of upcoming opportunities for defence SMEs, but it does not provide any specific detail into the exact steps the DOSBG will take to do this.  

Furthermore, although the MoD promises to offer routinely updated written guidance relating to the procurement process through the plan, the deadline set for this is March 2027.  

Will the culture towards SMEs change?  

One of the key themes in the action plan is the promotion of SMEs in defence. Through the plan, the MoD says that it will champion a ‘Think-SME’ culture, which will see feedback provided to SMEs for failed bids and the addressing of poorly written requirements. 

Additionally, the department plans to expand the existing ‘SME Champions’ network, a collaborative group between the MoD and defence primes, to drive programmes that remove barriers for SMEs.