A really important and timely piece of work from Babcock and the University of Exeter on unlocking SME potential in UK defence.
Having spent time digesting the report, one thing stands out clearly: the opportunity is no longer theoretical, it’s operational. The policy intent and urgency are there. Now it’s about delivery.
The report rightly positions SMEs not as ‘nice to have’, but as critical to capability, resilience and pace, particularly in areas like autonomy, digital, cyber and advanced engineering.
From our perspective at Convert Technologies, this strongly reflects what we’re seeing on the ground. Working alongside Babcock on naval dockyard programmes and in wider defence conversations, the shift toward more collaborative, SME-enabled delivery is real and gathering momentum.
A Few Reflections That Really Resonate:
🔹 𝗙𝗿𝗼𝗺 𝗴𝗮𝘁𝗲𝗸𝗲𝗲𝗽𝗲𝗿𝘀 𝘁𝗼 𝗲𝗻𝗮𝗯𝗹𝗲𝗿𝘀
The call for Primes to act as partners, not just intermediaries, is spot on. In practice, we’re already seeing this evolve with Babcock creating space for SMEs to contribute meaningfully to delivery, not just supply into it.
🔹 𝗙𝗿𝗼𝗺 𝗽𝗿𝗼𝗰𝗲𝘀𝘀 𝘁𝗼 𝗽𝗮𝗰𝗲
The report highlights the mismatch between SME agility and traditional procurement. Bridging that gap isn’t just about reform, it’s about mindset. Where this works well, teams prioritise outcomes over process.
🔹 𝗙𝗿𝗼𝗺 𝗮𝗰𝗰𝗲𝘀𝘀 𝘁𝗼 𝗶𝗻𝘁𝗲𝗴𝗿𝗮𝘁𝗶𝗼𝗻
It’s not just about getting SMEs ‘through the door’, it’s about integrating them into programmes early, where they can genuinely shape capability. That’s where real value is unlocked.
🔹 𝗙𝗿𝗼𝗺 𝗿𝗵𝗲𝘁𝗼𝗿𝗶𝗰 𝘁𝗼 𝗮𝗰𝘁𝗶𝗼𝗻
Perhaps most importantly, the report recognises the window for change is now. The combination of SDR, DIS and increased defence investment creates a rare alignment of policy and intent, but it only matters if we execute.
At Convert, we see ourselves as part of this evolving ecosystem, bringing specialist capability, agility and delivery focus into complex environments like naval dockyards, while working closely with partners like Babcock to make that integration work in practice.
There’s also a strong cultural signal: defence is becoming more open, collaborative, and innovation led. That’s good for SMEs, good for Primes, and critical for UK capability.
Excited to continue building on this momentum, and particularly to support the next phase of collaboration, including upcoming SME-focused initiatives with Babcock.
"The direction of travel is clear. Now it's about scaling what works."