Powering UK defence innovation: SME defence suppliers take centre stage
Ten pioneering UK businesses in the defence sector were under the spotlight at a showcase event hosted by Grant Thornton UK on behalf of the Ministry of Defence.
Opened by the Secretary of State for Defence, the Right Honourable John Healy MP, alongside Rupert Pearce, leader of the National Armament Director Group, the event highlighted ten of the UK’s most forward‑thinking growth businesses developing cutting‑edge defence and dual‑use technologies. These high‑potential SMEs took to the stage to pitch their breakthroughs directly to leading venture capital investors and senior government decision‑makers, an audience actively shaping the next generation of defence capability and technological progress.
Together, they demonstrated the energy, ambition and innovation driving the future of the UK’s defence and security ecosystem.
Phil Woolley, Partner and Head of Public Sector Consulting at Grant Thornton, commented:
“This showcase comes at a timely moment. Investment into defence and dual-use technology matters now more than ever. It matters for national security, for resilience and for economic growth. That’s why we were very pleased to bring together investors, innovators and policy leaders together to build momentum for investment in this vital industry.
“Our own analysis shows that defence activity often delivers significant economic value in parts of the country where many other sectors struggle to do so. SMEs are a vital part of that picture.”
Since 2023, Grant Thornton UK has been delivering the Defence Supplier Capability Development Programme (DSCDP) on behalf of the Ministry of Defence. The programme is designed to help SMEs grow, build resilience and overcome the specific barriers to scaling in the defence sector, while also delivering wider economic benefit.
Through that programme, Grant Thornton’s teams have supported some of the UK’s most dynamic defence suppliers as they strengthen their businesses, develop their capabilities and create jobs.
Phil Woolley adds:
“Interest in the DSCDP has grown strongly. Over two years there have been 600 expressions of interest, and the programme has been consistently oversubscribed. That tells us two things: first, that appetite to engage in defence and dual-use activity is high; and second, that navigating the sector is not straightforward, so businesses need targeted support to succeed.
“Investment is one of the challenges most frequently cited by SMEs. Defence brings particular complexities such as long procurement cycles, customer concentration and a risk profile that doesn’t always align neatly with conventional investment models.
“Supporting companies to raise finance in that environment is an area where we spend a great deal of time, drawing on our work across the defence sector and our position as the UK’s leading mid-market corporate finance adviser.”
Rupert Pearce, National Armaments Director at the Ministry of Defence said:
“UK SMEs are a powerful force at the heart of the UK defence industry. They have the energy, agility and risk appetite to drive innovation and create novel technology that strengthens our security and benefits our society.”