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<p>The Ministry of Defence (MOD) recognises that small and medium-sized enterprises
(SMEs) are a crucial engine for growth and innovation in this country. In 2014-15,
the MOD spent almost £4 billion both directly and indirectly with SMEs, equating to
around 19.4 per cent of our procurement spend.</p><p>We are taking steps to increase
the proportion of defence spending with smaller companies and have committed to ensuring
that 25 per cent of our procurement spend, both direct and indirect, is with SMEs
by 2020. To help achieve this challenging goal, the MOD last month refreshed its SME
policy, reflecting three core objectives:</p><ul><li>Engaging throughout the supply
chain, not just with direct contractors;</li><li>Reducing bureaucracy associated with
procurement; and</li><li>Making engagement more simple and straightforward.</li></ul><p>The
refreshed SME policy can be found on gov.uk at: https://www.gov.uk/government/publications/mod-policy-for-small-and-medium-enterprises.</p>
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