Growing with Grit: How SMEs Survive, Thrive, and Build Momentum 

The Harsh Reality of Starting Up 

Every business begins with an idea, but not every idea survives the early years. In developed economies with mature venture and growth equity many markets, it is expected that that 50% of businesses fail within their first three years, and only 40% remain operational by year 5. For most entrepreneurs, that means their venture never reaches a truly sustainable footing. 

For the businesses that do make it past the “danger zone,” the challenge doesn’t end there. Profitability takes time, and reaching consistent, meaningful levels remains the exception. Those that achieve it are usually the most disciplined, resilient, and adaptable teams. 

So what separates those that fold from those that flourish? 

Survival is About More Than Capital 

Having spent years in venture and growth capital, and now working closely with SMEs, one truth stands out: survival isn’t determined by access to funding alone, but by the discipline and judgement in how that funding is applied. The businesses that endure tend to master five things early: 

1. Cash Flow Discipline 
   The number one killer of young businesses isn’t lack of sales; it’s running out of cash. SMEs that survive and grow in the early years forecast carefully, build buffers, and consider all financing tools available to them. 

2. Market Awareness 
   Too many startups fail because they’re building something people don’t need. SMEs that thrive stay close to their customers, test constantly, and aren’t afraid to pivot when demand shifts. 

3. Sales & Marketing Muscle 
   Great products don’t sell themselves. The SMEs that grow invest early in telling their story, reaching the right audience, and building credibility through brand. A clear brand narrative isn’t a “nice-to-have” – it’s a growth driver. 

4. Smart Use of Finance 
   Finance is a tool, not just a lifeline. Structured finance solutions give SMEs the agility to fulfil orders, scale operations, and grab opportunities. 

5. Leadership & Adaptability 
   Markets change. Costs rise. Customers shift. The SMEs that survive are led by people who can adapt quickly, rally their teams, and make tough calls when needed. 

From Survival to Scale 

Getting through the first three years is an achievement in itself, but the real ambition for most founders is growth. Reaching meaningful profitability requires more than grit; it takes strategy, strong partnerships, and a willingness to invest in brand and marketing. 

Because here’s the truth: profitable SMEs don’t just sell products; they build stories. They know that customers and investors alike are drawn to businesses with a clear identity, a strong purpose, and momentum they can believe in. 

Looking Ahead 

Building a business is never easy. Most won’t make it, and those that do will carry the scars of the early years. But the SMEs that survive and thrive are the ones that embrace both resilience and imagination- managing their finances carefully, while also daring to tell bold brand stories that connect with customers and markets. 

It’s with a sense of pride, that we at Teybridge get to work and stand alongside those businesses, helping them access the capital and the confidence they need to not just survive, but to thrive. 

Because in the end, one thing matters most: Momentum Matters.