Why 'strategic smallness' could be a major benefit for your NZ business

We’re used to the prevailing motto in business being ‘bigger is better!’. So much of the strategic thinking and entrepreneurial ideas we’re surrounded by talk about the need for growth as the key driver of success, longevity and healthy profits.

But that tide may be turning. Professor Rod McNaughton, Professor of Entrepreneurship, University of Auckland, Waipapa Taumata Rau, argues that ‘strategic smallness’ may actually be a real business benefit for many New Zealand enterprises.

Let’s look at five key reasons why staying small and agile could be the perfect way to achieve the business goals you’ve set for your Kiwi company.

1. Productivity through AI-driven automation
   Adopting AI in a more proactive way helps you automate routine tasks, making it easier to deliver high productivity without the overhead of additional staff. By staying small and automating these low-level processes, you can compete with much larger global entities.
2. Staying operationally agile
   Agility is a core strength for smaller businesses, allowing you to rapidly adapt to fluctuating market trends. This speed and responsiveness make it easier to grab the fast-moving opportunities that larger, bureaucratic organisations often miss out on.
3. Digging deep into your specific niche
   Strategic smallness is great when you’re looking to focus on high-value, specialised products rather than low-margin mass production. By digging deep into a niche, and prioritising quality over volume, you can maintain premium pricing and build stronger, more authentic brands.
4. A reduction in risk
   Modern anti-scale entrepreneurs use digital tools to manage large, international supply chains efficiently. This allows you to stay lean and resilient, while avoiding the financial risks and complexities that are commonly associated with traditional scaling.
5. A more resilient and attractive business model
   Smaller firms often have greater social and environmental resilience. The compact nature of your business model makes it easier to align with community values and sustainable practices, positioning your brand as a good option when compared to large, global conglomerates.

If embracing strategic smallness sounds like it should be part of your ongoing business strategy, come and talk to us. Our team can help you understand the financial, operational and strategic implications of staying small, and the potential impact for your future success.