If times are tough for large organisations, what chance do small businesses have? Surprisingly, the answer is: a very good one. Resilience isn’t just for global giants with deep pockets; small businesses have unique advantages that allow them not only to survive but thrive when conditions are challenging.
In a recent conversation with Sri Kaza, author of Unconvention, we explored the habits and strategies that kept many small businesses afloat during the pandemic. His insights offer a practical playbook for entrepreneurs who want to grow while staying true to their mission.
🎧 Listen to the podcast episode here
Why resilience is different for SMEs
Having advised multinationals at McKinsey & Co, Kaza later turned his focus to small businesses and noticed something striking: resilience at the SME level looks very different. During the pandemic, the businesses that survived weren’t necessarily the ones with the biggest reserves – they were the ones whose customers were rooting for them. That loyalty wasn’t bought with schemes or discounts; it was earned through genuine connection and a deep care for their customers’ needs.
This is where SMEs have the natural edge. When resources are limited, adaptability, creativity and human connection become the true competitive advantages. Large organisations can’t replicate the speed, intimacy or authenticity of a small, heart-led business.
The power of the 3Ps in small business resilience
Purpose
Purpose is more than a feel-good mission statement – it’s an anchor that creates stability when everything else feels uncertain. A clear and evolving purpose allows entrepreneurs to make decisions with confidence, inspire loyalty and build businesses that last.
As Kaza puts it, ‘Evolution of your purpose is real but it can only happen if you’re conscious about it’. For ambitious leaders, purpose isn’t a constraint; it’s a multiplier of value.
Positioning
Too often, businesses try to appeal to everyone and end up offering vanilla. Positioning is about claiming a distinct space in the minds of your customers and serving them so well that they can’t imagine going elsewhere.
‘When you’re in the business of pleasing everybody, you’re not giving them something distinct.’ Kaza explains.
Proximity
SMEs thrive when they are embedded in the lives of their customers and local networks. Proximity, whether physical or digital, ensures that even when big competitors enter the market, they’ll find the territory already staked.
Four practical resilience lessons for SMEs
- Loyalty schemes are the opposite of loyalty. ‘Loyalty means I’ll stick with you. Nothing to do with a loyalty programme.’ Sri explains. Real loyalty comes when customers feel seen and valued.
- Faith and focus matter. The businesses that thrive don’t abandon their core strengths in a panic. ‘If you’re already flavourful, don’t go after other flavours,’ Sri says.
- Gut instinct is an advantage. ‘When you know your 3Ps you can run from your gut.’
- Asking for help is leadership. ‘Asking for help is not admitting you’re unable to do things. It’s saying I have an aspiration bigger than one person and if you believe in it too, you can come along with me.’
Why this matters for purpose-led entrepreneurs
If you’re building a business with a mission, you already know resilience isn’t about short-term gains. It’s about sustainable growth that benefits your team, customers and your wider community. By leaning into your purpose, positioning yourself clearly and staying close to your people, you can scale successfully without losing what makes you unique.
Small businesses don’t just have a chance in tough times — they often have the advantage because agility, authenticity and human connection are powerful levers.
We’re here for you
These resilience strategies aren’t abstract theories. They’re practical, people-focused approaches that allow ambitious, purpose-led entrepreneurs to thrive. If this strikes a chord with you, drop us a message and let’s talk.
🎙️ Listen to the whole episode now or search Sparks by Ignium on your favourite podcast platform.
Explore more business growth insights in the Ignium Spark Tank, or find out more about our Scaling Up approach.