On Saturday, 6 December 2025, the Ministry of Defence used Small Business Saturday to spotlight a string of SME inventions moving from workshop to frontline. Through the Defence and Security Accelerator (DASA) and the Defence Science and Technology Laboratory (Dstl), £35 million has flowed to projects since July 2024, with a new UK Defence Innovation (UKDI) body now tasked with scaling more of them, backed by a ring‑fenced annual budget of at least £400 million.

For investors and founders, the message is simple: dual‑use is in demand. The MOD wants commercial ideas that solve military problems and also sell into civilian markets. DASA says the model shortens the gap between grants, prototyping and procurement by pairing SMEs with testing facilities and end‑users across the Services.

Government figures released via DASA’s 2025 impact report point to nearly £1 billion in economic value and 1,800 jobs created by funded companies to date. Despite tougher fundraising conditions, DASA‑backed firms raised £174 million in 2024 alone, with the department arguing that defence can be a dependable growth driver for regional economies.

Scotland’s QuickBlock is a clear example. A modular building block originally designed for civilian use has been adapted for ballistic and blast protection, giving field units a fast way to build barriers and shelters. For a small manufacturer, this brings predictable unit orders and a route into allied markets that share standards.

In Wales, Swansea University spin‑out Trauma Simulation has built whole‑body training models for Combat Medics and Medical Emergency Response Teams. The product line mirrors needs in NHS major trauma training, a reminder that med‑tech born in defence often finds broader healthcare revenue.

In the South West, Sentinel Photonics has grown from a founder‑led team of ex‑Dstl scientists to around 20 staff. Its rifle‑scope attachments, designed to protect eyesight from lasers and cut the risk of laser detection, are now integrated into the Armed Forces’ KS1 rifles entering service, signalling product‑market fit and near‑term procurement income.

Policy architecture is being rewired to keep momentum. The Strategic Defence Review created UKDI to bring together scouting, testing and adoption of commercial tech, and the MOD has committed to spend 10% of its equipment procurement budget on novel technologies each year. A new Defence Office for Small Business Growth will widen access, alongside a target to lift spending with SMEs by £2.5 billion by May 2028 under the Defence Industrial Strategy.

For SMEs, the takeaway is operational rather than rhetorical: plan for dual revenue streams. Build roadmaps that align Technology Readiness Levels with MOD trials, but keep civilian sales active to smooth cash flow. Expect thorough security and export checks; they add time but lead to durable orders once passed.

The opportunity is real, but so are the constraints. Ring‑fenced budgets do not remove competition for slots in trials, and procurement timelines can still outlast startup runways. Founders will need disciplined working capital and early conversations with primes on integration, especially where certification or ruggedisation is required.

Small Business Saturday arrives with a reminder that Britain’s 5.64 million small firms are edging back into growth for the first time since 2020, according to the MOD release. The marker for the next two quarters is simple: watch the cadence of DASA calls, the conversion rate into UKDI‑sponsored trials, and whether follow‑on contracts materialise as KS1 rifles roll out. If those numbers move, jobs and supply chains will follow.

Minister for Defence Readiness and Industry Luke Pollard framed the approach as backing good jobs across regions and giving the Armed Forces the best tools. DASA head Anita Friend said strong ideas are surfacing in every part of the UK and UKDI‑DASA will keep finding and funding them.