How to future proof your SME and build lasting growth

Each year on 27 June, the world marks Micro, Small and Medium-sized Enterprises Day – a celebration of the vital role SMEs play in the global economy. In the UK alone, there are an estimated 5.6 million SMEs, making up over 99% of the business population. Essentially, they are the backbone of a healthy economy – driving growth, creating jobs and fostering innovation.

But thriving in today’s economy is far from easy. From the Covid-19 pandemic and Brexit to soaring fuel prices and inflation, the past five years have tested SMEs. And while unforeseen challenges are inevitable, the real question is: how should SMEs respond to ensure they don’t just survive, but grow sustainably?

The growth problem – why SMEs struggle

Low productivity and stagnant growth have long plagued SMEs, even in stable times. Many lack the tools and frameworks to evaluate performance or do not have strategic practices in place.

This is something I have witnessed first-hand, as part of my research focused on SME performance and growth. My work is focused on developing people and performance, as people are the drivers and backbone of all organisations, and the economy. Through extensive research across the globe, I found that existing models weren’t growing businesses, rather they were just sustaining them.

That’s why I developed the Business Growth Diagnostic: a research-backed tool designed to help businesses reflect, reframe, and reposition themselves for long-term growth.

Position your SME for sustainable growth

During the pandemic, many SMEs were forced to rethink how they operated. This pivotal moment revealed something important: when pushed, SMEs can adapt – not just their products and services, but their entire way of thinking.

The Business Growth Diagnostic supports that journey by offering:

• Time for strategic reflection, learning and planning
• Better infrastructural support
• Long-term value creation with customers and suppliers
• Smart investments in technology and human resources
• Cost leadership strategies that improve productivity and fuel innovation

Three areas of transformation for growth

Using the Diagnostic, we observed a pattern. SMEs that embraced growth did so by challenging themselves in three key areas:

1. Mindset transformation

Do you view crises as an opportunity for innovation? Do you foster a culture of agility and growth?

2. Strategic transformation

Is your business guided by a strong purpose, vision, and values? Do you have a strategic plan that aligns with your goals?

3. Digital transformation

Are you leveraging new technologies to streamline operations, reach customers, or create new revenue streams?

Together, these pillars from our Dynamic Organisational Transformation framework enable SMEs to scale up sustainably and build resilience for the future.

150 Derby/Derbyshire businesses have been helped with the Business Growth Diagnostic in the last couple of years. In the two years before Covid-19, 340 West Midlands businesses and 500 Indonesian businesses were assisted.

Diagnose before you grow

The first step to building lasting growth is understanding your current position. At the University of Derby, our Diagnostic Tool helps business leaders assess their organisation across nearly 50 business areas – from supply chains and innovation to technology, training, and CSR. This is all based upon a scoring system that has been created against leading knowledge from national and international research.

Ultimately, it’s not about a ‘one-size-fits-all’ approach. It’s about asking the right questions and using data-driven insights to make smarter decisions.

Think differently about growth

For SMEs to thrive in an unpredictable world, growth must be intentional, informed, and innovative. By rethinking your strategy, mindset, and use of technology, your business can move from surviving the next crisis to leading through it.

As we celebrate the power of SMEs this June, now is the perfect time to reflect on where your business stands and where it could go next.

Learn more about the University of Derby’s Business Growth Diagnostic and get in touch to find out how we can support you.

For further information, contact the press office at pressoffice@derby.ac.uk.