Blockchain relies on the number of nodes in the network.
The network is strong if number of nodes in the network is more and widely spread. True motive of a blockchain is disintermediation and security. Security gets compromised if the network is weak, By weak network I mean that the computational power of the nodes is low to an extent that a malicious or illegitimate user can outperform the computing power of the entire network.
So, at small scale it won't be difficult for a user with strong computation to overtake the network. Hence, blockchaiin technology is not reliable in such networks