Small Businesses, National Defence, and the Power of Practical Partnership

On 25 July 2025, I had the privilege of taking part in a panel debate with Neil Jackson from Defence Relationship Management as compere, alongside Brigadier Christopher Palmer OBE from MoD, Lt Col (Retd) Murray McLeod-Jones MBE MA from BAE Systems, and Group Captain Tom Walker at the Defence Academy in Shrivenham as part of its Employer Engagement Day, a timely and important event convened to explore how we can strengthen the partnership between Defence and UK employers.

The focus was clear: how do we better support Reservists, how can Professional Military Education (PME) bring value to business, and how do we translate the ambitions of the Strategic Defence Review (SDR) into real-world, sustainable collaboration?

For me, the answer begins with recognising the often-overlooked players in this space: the whole of the UK’s 5.5 million businesses, of which the majority are SMEs including more than one million sole traders, and micro businesses with 0 to 9 employees which make up 95% of all businesses in the UK

These enterprises are the beating heart of our economy and our communities, and they have a historic and continuing role to play in national resilience. But if we are serious about building a Defence-ready nation, then we must also get serious about including all employers in the conversation, not just those with HR departments and resilience frameworks, but those run from kitchen tables, workshops, and shop floors.

We need a different model when it comes to engaging SMEs in national resilience efforts. Not all small businesses are built the same and we shouldn’t expect them to act the same in a crisis. A small business with five staff doesn’t have the same internal structures or safety nets as a medium-sized small business with 150 plus staff. So, if we want small businesses to contribute meaningfully, we need to meet them where they are with a model that supports how they pivot, how they pause, and crucially, how they restart.

To bring these businesses into the national resilience conversation in a way that works for them we must start with trust and practicality. We can’t just invite small businesses into the room when something goes wrong. We need to co-design the playbook before we need it. That means building a framework where their contribution is recognised, their risk is managed, and their ability to bounce back is protected. That’s the heart of the ‘Pivot & Pause’ approach.

Government departments like MoD and Department for Business and Trade have a huge role to play not just in asking for support, but in creating the right conditions to give it. Think back to Covid: we saw furlough, bounce-back loans, rate relief. It showed us what’s possible when government acts fast and collaboratively. In this context, we need to go one step further. We must protect the businesses that pivot to help in a crisis and make sure they’re not left behind when the dust settles. That could mean tax credits, public recognition, or fast-track procurement: but it only works if these government departments build it together, with small businesses at the table from day one.

Reservists and the Realities of Small Business

I raised several questions at the forum that I believe go to the heart of this agenda:

● How can Defence better tailor its messaging and support so that the smallest employers feel equipped and confident to support Reservists?

Many of these businesses operate without HR professionals or dedicated learning leads. If we want PME to be part of CPD, we must make that pathway understandable, accessible, and valuable for time-pressed business owners. This is very achievable through online learning and time accessible gatherings rather than traditional one-week courses.

● What frameworks or partnerships can help SMEs manage mobilisation risks without compromising commercial continuity?

Small businesses often operate with tight staffing margins. The SDR’s ambition to expand mobilisation is laudable, but it must be met with pragmatic collaboration, whether that’s through better forecasting, pooled talent schemes, or temporary relief mechanisms. The creation of more sophisticated models that can look at the types of businesses that need to pause (therefore available resources) or pivot where their product or service can diversify for instance. We have the technology to produce simulations and forecasting depending on the type of threat, be that regional, national or international. Whether the threat is caused by climate, conflict, or cyber, a ‘whole society approach’ conversation and strategy makes for a ‘we are in this together’ mindset and allows us to look at a restart strategy at the same time.

● Can we co-create a Defence–SME Compact?

Yes, as long as this is a practical, regionally tailored toolkit, designed with and for small employers, to help them navigate Reservist engagement, PME integration, and Defence partnership in a way that reflects their scale and capacity.

History reminds us: SMEs step up when it counts

We don’t need to look far for inspiration. During WWII, it was small firms that transformed production lines, supported logistics chains, and drove innovation. That same spirit exists today in our tradespeople, tech start-ups, retailers, creatives, and service providers.

If we can harness it again through mutual understanding, smarter systems, and co-designed solutions, we have an opportunity to create a modern framework for resilience that reflects the true shape of the UK economy.

Moving from Policy to Practice

At X-Forces Enterprise, we work every day with veterans, reservists, and military spouses who are either starting or running small businesses. We see the enormous talent, discipline, and leadership they bring from military life and how that can benefit wider society when properly supported.

Similarly, through the Federation of Small Businesses, we engage with a national network of employers who want to do the right thing but need tools, clarity, and reassurance. Many of them are already stepping forward to support the Armed Forces community, often without recognition or resources.

This is why the Defence Academy’s event mattered so much: it gave us a platform to connect strategy with lived experience, and it reminded us that resilience isn’t built in boardrooms alone, it grows in small teams, local communities, and shared values.

A Call to Co-Produce

My message is simple: if we want a Defence ecosystem that is truly future-ready, we must build it with, not just for, small businesses. That means listening to their concerns, co-creating solutions, and recognising that while they may be small in size, they are mighty in contribution.

Let’s not leave them behind. Let’s bring them in, lift them up, and work together to build a more resilient, inclusive, and agile nation.

Thank must to go to Colonel Debs Taylor and the team at the Defence Academy Shrivenham for putting on the inaugural event and we look forward to continuing to support the strategy.