Defence SMEs
Small and Medium-sized Enterprises (SMEs) play an important role in the European defence sector and are of critical importance to the supply chain. However, the European defence market is fragmented. Contracts for defence goods and services are often awarded nationally which restricts cross-border competition. This situation makes it difficult for SMEs to compete with companies of other countries. In addition, prime contractors often select the same supply chain/sub-contractors due to the prime contractor´s liability for the whole contract. Finally, a major challenge for SMEs is to raise awareness of their products and services. However, there are some European initiatives designed to support SMEs in the defence sector.
In December 2007 the European Commission published a Defence Package containing a Communication which highlighted measurers and policies to achieve a stronger and more competitive European Defence industry in a number of areas. One of these areas is the support of SMEs. In addition, on 19 June 2008, the European Commission adopted the European Small Business Act (SBA) to support European SMEs in all industrial sectors including defence.
In 2006 the European Defence Agency (EDA) developed a Code of Best Practice in the Supply Chain. On a voluntary basis prime contractors can advertise sub-contract opportunities in the defence sector through a portal (the Electronic Bulletin Board) which has been established by EDA. Besides encouraging more competition and transparency generally the Code is specifically designed to support SMEs to compete effectively in the defence sector. To-date, some cross-border subcontracts have been awarded as a result of the Code.
