"Innovate or die" is a mantra that many founders follow, lest their product or service stagnates and leaves them behind the competition. But transformation isn't cheap and cash-strapped small firms can't afford dedicated teams and state-of-the-art labs.

Anthony Eskinazi believes that innovation can be fostered without breaking the bank – and it starts with a company's culture and team. "We have an environment where ideas are ­encouraged," says the founder of JustPark, an app that connects drivers with parking spaces.

It prioritises "cross-functional" working, where employees from all departments and levels of seniority work on projects together, each one bringing a fresh perspective. It lifts creativity and reduces groupthink, where views go unchallenged.

It can work for small companies, whom he says should start by getting staff to socialise as a group more often – for example, a regular lunch. "People get used to sharing with each other and it sets the tone for more formal innovation later on."

Having staff host show-and-tell sessions and inviting outside guests to present will also broaden the views of colleagues, he adds.

Keep asking the audience

Callaly is the feminine care start-up behind the Tampliner, which combines an organic cotton tampon with a soft mini-liner. "Tampons haven't had a redesign in about 80 years, so what we're doing is innovative at its core," explains co-founder Thang Vo-Ta.