SMEs form the backbone of every economy. In Singapore, according to the Department of Statistics’ 2024 data, they account for 99 per cent of all enterprises and more than two-thirds of employment. Yet for many SMEs, while they understand the need and importance of innovation, the practicalities of balancing cash flow and meeting customer deliveries often take up most of their attention, leaving innovation as something done “on the side”. Even as they embark on this journey, they are often faced with uncertainties and wish they could have someone experienced to exchange ideas with and to guide them through the process.

Having worked alongside SMEs for over a decade at IPI Singapore, we have seen this challenge firsthand. Our focus is on making innovation practical and on being the partner that SMEs can rely on as they navigate their journey. We call this bite-sized innovation: breaking transformation into smaller, achievable steps so that SMEs can see quick wins, build confidence, and maintain the momentum to move forward sustainably.

Innovation is a bite-sized journey

A Singapore-based SME in the packaging sector sought to strengthen its product development capabilities and prepare for regional expansion. To achieve these goals, the company joined IPI Singapore’s Innovation Advisory programme, which supports innovation-driven enterprises in addressing key business challenges.

Working with experienced advisors, the company began by establishing a clear product roadmap and enhancing its standard operating procedures. With these foundations in place, it scaled up production, improved quality assurance, strengthened R&D capabilities, and refined customer engagement strategies.

Having strengthened its core processes and organic capabilities, the company then focused on sharpening its go-to-market and supply chain management strategies. These progressive enhancements enabled it to conduct proof-of-concept trials in Indonesia and Thailand, while positioning itself for future expansion into other markets, including Vietnam, Malaysia, India, China, and Europe. With projected revenue growth expected to double, the company was well placed to embark on its next phase of growth. Through TechInnovation, we further connected the company with a technical expert to develop a new product, creating an additional revenue stream.

This example shows how practical, incremental steps can help SMEs build momentum, enhance capabilities, and achieve sustainable growth.

The power of partnerships

No SME scales alone. The Singapore market is small, and international growth is necessary, even though it comes with risk, especially if not managed well. This is where open innovation can make a difference. It allows companies to collaborate beyond their boundaries, drawing on the strengths and expertise of partners in other markets.

Over the years, we have seen how platforms and partnerships can facilitate meaningful collaboration. Through initiatives such as TechInnovation, KILSA Global, and the Japanese Corporate Technology Innovation (JCTI) Launchpad, local companies have co-created with Korean startups, explored Japanese patent libraries, and connected with European partners seeking entry into ASEAN markets.

Also Read: Celebrating innovation and growth from startups, SMEs, and investors in Asia

One key lesson we have learnt is that innovation is always relative. What feels cutting-edge for one company might already be standard for another. The key is relevance. Does the technology solve a real business problem, or open a tangible new opportunity?

Careful preparation and clear understanding are essential before partners meet. We first look at the problem statements and assess whether suitable technologies exist. Both sides are then guided so that, when they meet, discussions are relevant, focused, and productive, rapidly progressing to pilots or co-developed solutions. The goal is to identify common ground for actionable collaboration, whether testing a single solution or developing a pilot together.

Collaboration requires the right chemistry

Collaboration is often spoken of as a principle, but we see it more like chemistry. When the right people meet, sparks fly. And when it is done right, the outcome is transformative, creating new compounds for growth. Just as in chemistry, a compound combines the strengths of its constituent elements to achieve better performance. Similarly, in innovation through collaboration, both parties benefit by leveraging each other’s strengths.

A case in point: a multinational company with an AI anomaly detection software was matched with a Singapore SME serving data centres. Together, they trialled a robotic inspection solution that reduced energy costs. For the SME, it was a quick and low-risk way to test advanced technology without heavy R&D. When fully commercialised, the SME anticipated that this could generate a 30 per cent increase in revenue. For the MNC, it was a chance to see their solution in action within a real-world setting. A small step, but one that unlocked immediate improvements.

We also see legacy brands reinvent themselves through collaboration. Eu Yan Sang is reimagining tradition with modern innovation. Family-run companies like Kwong Cheong Thye and Scanteak are modernising to stay relevant across generations. Their stories show that no company is too old to collaborate for impact.

Also Read: How AI-ready devices are reshaping the way SMEs work with Lenovo Pro and AMD

Why bite-sized innovation matters

Bite-sized innovation is a reminder that growth does not always come from dramatic leaps. Often, it is about taking small wins in sequence, strengthening the business core, building trust within the team, then with partners and customers, and finally letting those steps compound over time.

Since 2011, we have partnered with more than 450 SMEs on their innovation journeys. From edtech trials for children with special learning needs to companies shifting from distribution to product ownership, the principle is the same: practical, actionable steps that lead to real impact.

Looking ahead, to SMEs and business founders alike, you are already taking meaningful steps forward. The real difference comes when you are supported with the right advisory, credible partners, and manageable pathways. Together, we can turn today’s small wins into tomorrow’s growth.

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