Defence ramp-up is creating a three-speed divide among SMEs, with many firms still on the sidelines, BDC study finds (opens original article in a new tab)

A BDC study reveals a three-speed divide among Canadian SMEs in the defence sector, with some scaling quickly, others expanding cautiously, and many still facing barriers to entry despite growing demand.

• A BDC study finds SMEs in Canada's defence sector are divided into three groups: those scaling quickly, those expanding cautiously, and those preparing to enter the market.
• Barriers for SMEs include complex procurement, financing challenges, and labour shortages, with many firms still on the sidelines despite rising defence demand.
• The study highlights a need for clearer pathways and support to help SMEs navigate defence-specific requirements and build a stronger domestic industrial base.