The defence sector shows how small businesses supercharge growth

The argument for investing in homegrown technology capability has never been stronger, and the appetite to back small businesses is growing. Just last week, the Chancellor instructed Ministers to “buy British” wherever possible, adding that she is disappointed they are not already doing so.

Each UK Government Department has published spending targets for small businesses, but progress has been limited so far. However, the Ministry of Defence is getting this right with the recent award of 13 new contracts to small British technology companies, many of which are working directly with the MOD for the first time.

Aquark Technologies, based in Eastleigh, is one of the 13 businesses. They've spent years developing quantum technology that can keep time precisely enough to navigate without GPS correction. Under conventional procurement, a company of their size would likely have found the process prohibitive.

The Neutral Vendor Framework for Innovation, a pioneering procurement marketplace designed by Commercial X to increase speed and value for money, and run by Constellia, provided them with a viable route in. The MOD secured the contract agreement faster than it otherwise could have.

John Healey, the Defence Secretary, has also said that we must buy, build and back British defence companies. The NVFI is truly supporting this by lowering the barriers to entry for UK SMEs to supply into Defence and the wider Government.

The UK has no shortage of world-class technology. British companies are working on some of the most consequential defence problems of our time, including quantum navigation, AI-enabled logistics, and next-generation cyber capabilities. The talent and ideas are here.

That talent also expands beyond technology. As a woman in defence, I’ve seen firsthand the amazing women leading small businesses, developing cutting-edge technology and driving innovation from outside the traditional primes. I recently worked with female leaders like Greenjets' Kathryn Evans and Avenue3’s Cairen Bell on emerging technology in Defence.

SMEs are already diversifying what British defence looks like. So, if we want that to mean something, social value must remain central to how we award contracts. The talents and ideas are there, but it’s the system which is keeping them locked out.

The UK is rich with small companies with the potential to drive real change across the public sector. Defence is making a difference, and I’m confident these 13 businesses will showcase just how much small businesses can accomplish when the system is designed to work with them.

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Verity White is the Secure Business Director at Constellia.

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