The Three Lions lost their opening game by 1-0 in Uherske Hradiste, thanks to a somewhat fortunate second-half winner for the Portuguese from Joao Mario.
But Southgate’s team created a number of chances, only to find themselves spurned by in-form keeper Jose Sa and some narrowly off-target shooting.
Sweden v England
UEFA European U21 Championship
The Finals
6pm, Sunday 21 June 2015
Olomouc, Czech Republic
Live on BT Sport
"I there were [positives] and I know that’s the way coaches like to go after you’ve lost a game, but I thought we created a lot of chances, probably more than Portugal," said the head coach.
"We can be a bit better in some of our early build-up play, but when we were in their half I thought we posed a real threat and kept the ball well.
"And we were playing against a very good side. We said at half time that it would be one goal that decides it and the manner of the goal was very cruel, but that’s football."
England’s next game is in their base city of Olomouc, where they will face Sweden on Sunday with the Scandinavians having already picked up a win in their first game with Italy earlier on Thursday.
And Southgate’s team have already turned their attentions to that match as they look to get back on track after suffering only their second defeat in 18 games under the former Aston Villa man.
"The important thing now is that we have two days to prepare for our next game," he added.
"I think the players should be pleased with the majority of what they did tonight and make sure that we’re ready to take the game to Sweden, because it’s a group that I believe we can still get out of.
"On another night, a few of those [chances] might have gone in for us.
"If we weren’t creating chances, I’d have more concern but it’s clear that we were and genuinely speaking, we defended as a team reasonably well.
"You’d always like to concede fewer chances but there’s a lot to take from the game."
England were dealt a blow in the build-up to the game with defender John Stones ruled out through concussion and then striker Saido Berahino picking up an injury in training which has seen him withdrawn from the competition.
But Southgate felt his squad handled the late changes quite well, adding: "It’s clearly not ideal as we’d been working on a team with those two [Stones and Berahino] in it, but the players that came in played well and we adapted and adjusted.
"And that’s what we have, that strength in depth and we can’t worry about what we haven’t got.
"We just have to pick the right team now against Sweden and make sure we get the win."