SME-D: Defense investments must be balanced with the reality of small businesses (Reference response 2025:86)

SME-D welcomes the ambition to strengthen Sweden's defense capabilities, but emphasizes in its response to the consultation SOU 2025:86 “Ready!” that the investments must be made in balance with the conditions of small and medium-sized enterprises. In the response, we propose several support measures to avoid disproportionate consequences for the business community.

We support the ambition to strengthen the Swedish Armed Forces' personnel supply, but emphasize that the proposed changes could have significant consequences for small and medium-sized enterprises (SMEs). These companies constitute an important part of both the Swedish business community and the total defense supply chains.

Impact on SMEs

In the consultation response, we point out several risks for smaller companies:

Staff turnover: When an employee is called up for military service, it can directly affect production, delivery capacity and customer relations.
Key competence: Loss of people with unique skills can have disproportionate consequences in technology-intensive and security-classified areas.
Planning uncertainty: Extended service obligations and remaining conscription can create unpredictability that makes operational planning difficult.
Economic effects: Costs for recruitment, training and lost productivity hit smaller companies with limited margins harder.
Recruitment risk: Companies may become less likely to hire people with military connections, which can lead to indirect discrimination.

Proposal for support measures

We propose several complementary measures to strengthen total defense without disproportionately affecting SMEs:

Financial support – government compensation grants and tax deductions for temporary worker costs.
Predictability – a planning calendar from the Armed Forces for temporary personnel.
Legal support – information packages and clear guidelines for employers as well as stronger legal protection when called up.
Skills supply – subsidized training efforts for replacement personnel.

Need for analysis and collaboration

SME-D calls on the government to:

to carry out a special impact assessment for SMEs, and
establish a collaboration platform between the Armed Forces, employer organizations and SME representatives.

We are convinced that a strong total defense requires a robust and competitive business sector, where small and medium-sized companies are given the opportunity to contribute in the long term.

Closing comment

Sweden's defense capability and the resilience of the business sector are interdependent. Through clear support structures and better planning, the state can ensure that total defense is strengthened without weakening the companies that form its backbone.

Read the full consultation response here.

Reference answer