Agree that diversification would be a good thing - for the environment as well as to mitigate the economical risk.
Agree as well that the grant system (old boyz picking "winners") does not work. However - not sure, whether I have seen so far any evidence that SME's would do better when pampered with tax payer money as you seem to imply. Plenty examples for small enterprises nurtured by taxpayer grants and than just sold out overseas.
What we need is a level playing field for everybody in a low tax environment. No grants but lower taxes. We don't need inefficient bureaucrats wasting tax payer money to run lolly scrambles (no matter who is targeted). If everybody pays low taxes, there is no need for an expensive and inefficient wealth redistribution system (aka lolly lottery ...).