Small businesses are having a big moment. SMEs (small and medium-sized enterprises) are quietly reshaping the UK’s economy, by doing what many big brands struggle to do: connect, pivot, and stand out. While big names might hog the spotlight, it’s the SMEs that are winning in loyalty, adaptability and consumer trust, often on a shoestring budget. As nearly half of these businesses plan to boost their marketing spend next year, the question for larger brands is: what can they learn?
Fight the risk
Although SMEs make up for 99% of private enterprise in the UK, they aren’t getting enough attention when it comes to marketing outcomes. But there are plenty of brilliant cases of small business utilising their skills to great effect. The fact is they are in a unique position compared to larger corporations with much bigger spending plans. If there’s one thing big brands can learn from SMEs, it’s this: risk often leads to reward. Big brands, tied down by caution and red tape, tend to miss the mark when it comes to bold, consumer-centric choices. SMEs, on the other hand, see less to lose and plenty to gain. They take risks, tweak as they go, and aren’t afraid to fail fast.
For larger brands, loosening the grip and adopting a similar experimental mindset could unlock stronger consumer connections. SMEs also thrive on being nimble, dodging the layers of bureaucracy that often slow big brands down. In today’s fast-paced market, staying ahead is about quick pivots and bold moves — something small businesses can pull off with ease. TikTok is a perfect example: SMEs often latch onto trends the minute they emerge, while bigger brands are still gathering approvals. Loss aversion theory teaches us that these bigger entities usually lack the propensity to be bold for fears of alienating subsections of consumers. With smaller stakes, SMEs can embrace the ‘move fast, learn fast’ mentality, responding to consumer demand without a second thought. Big brands, are you listening?
Genuine connections with audiences
Another advantage SMEs have mastered? Genuine connection. Smaller businesses tap into local and niche audiences with authenticity, often choosing relatable influencers over megastars. This approach isn’t just cost-effective; it resonates. For big brands, this is an invitation to rethink partnerships. Maybe skip the celebrity and consider someone who speaks directly to the audience. True consumer engagement isn’t just about reach, it’s about relevance.
Where big brands have data, SMEs have direct ties. Knowing their customers by name, small businesses create bonds that make customers feel seen, heard, and valued. This isn’t just good business; it’s psychology in action. The loyalty SMEs foster isn’t accidental — it’s built on what we call the ‘reciprocity factor’: when customers feel valued, they give back, whether that’s through repeat purchases, referrals, or just positive word-of-mouth. Brands like Patagonia have turned this idea into an art form, beginning as small businesses with a purpose, then building an audience devoted not just to their products but to their values.
Ben & Jerry’s is another example — they aced the art of blending business with purpose, starting as a small venture focused on great ice cream and social good. They grew so quickly because when they opened their first scoop shop in Vermont in 1978, they were initially differentiated by being deeply connected to their local community and direct consumer feedback. With a market dominated by large companies, they weren’t afraid to stand up to corporate giants with bold, quirky, personal and inventive campaigns that solidified their image as a challenger brand. This personal touch and sense of community were foundational to their brand, helping them grow while staying true to their values. Over time they built a loyal audience, not only around their original flavours, but around their unwavering commitment to values like social justice, sustainability, and activism; deeply anchored in advocacy and giving a voice to the voiceless.
Collaborate to take the lead
It’s no secret that many SMEs lack marketing know-how from the get-go, but they’re catching up quickly. Recognising that marketing is essential, not optional: these businesses are investing in skills, strategies, and collaborations that help them compete. Collaboration is the real ace here.
By teaming up with niche influencers or local brands, SMEs broaden their reach without breaking the bank. Take this year’s stand out challenger brand Blank Street Coffee, an increasingly established SME making waves by partnering with pop icon Sabrina Carpenter to rapidly build buzz on her single ‘Espresso‘. It’s proof that with agility and speed, the right alliances can pack a punch.
Small but mighty
As SMEs double down on marketing, big brands have a unique opportunity to learn and adapt. Adopting the SME mentality — nimble, genuine, and purpose-driven — could lead to the kind of consumer loyalty and respect that today’s market demands. Big brands, it’s time to think small.
Featured image: Clem Onojeghuo / Unsplash
