Finnish SMEs struggle to access NATO defence procurement

A new report finds Finnish small and medium-sized enterprises are failing to break into NATO defence procurement tenders due to weak understanding of the process and high financial risks.

The study, published today by Jyväskylä city economic services and the Innokaupungit cooperation network, shows many firms find NATO procurement bureaucratic and financially daunting. Only 3,000 Finnish companies have applied for a NATO CAGE code, compared to 11,000 in Sweden.

Sanna Laakso, programme director at Jyväskylä city economic services, said SMEs have yet to fully capitalise on growing defence market opportunities. “Obtaining the code is just the first step,” she noted, adding that European security investments are set to rise in coming years.

The report recommends national coordination and better product development support to help SMEs manage risks. It highlights that companies often bear development and testing costs upfront with no guarantee of orders, making participation unaffordable for many.