Australia can leverage SMEs to build national resilience

Our Partner & Asia Specialist, Sumit Dubey, has just published a timely piece exploring how Australia can leverage SMEs to build national resilience.

Australia can leverage SMEs to build national resilience

By Sumit Dubey – 4 July 2025

Australia urgently needs a strategy to integrate small and medium-sized enterprises (SMEs) into its defence industrial base to boost sovereign capability and supply chain resilience. While SMEs drive innovation in areas like AI, drones, and advanced sensors, current procurement processes overwhelmingly favour large prime contractors, sidelining smaller innovators.

International allies like the US and UK actively fund and support SMEs through targeted programs, proving the benefits of engaging dual-use tech companies. Australia, however, still burdens SMEs with complex tenders, certification demands, and slow payment cycles—barriers that deter participation and push many firms towards civilian markets.

Examples of successful Australian SMEs, such as DroneShield and SPEE3D, highlight the untapped potential of smaller firms in defence. The article calls for a dedicated dual-use inclusion strategy—simplified procurement pathways, SME-first targets, financial incentives, and matchmaking forums with defence stakeholders—to ensure Australia can field advanced capabilities rapidly and compete globally.

Read the full article on the ASPI main page here: https://www.aspistrategist.org.au/australia-can-leverage-smes-to-build-national-resilience/