Marketing Society scaleup slides 25 november 2015

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Information about Marketing Society scaleup slides 25 november 2015

Published on November 22, 2015

Author: sherrycoutu1

Source: slideshare.net

1. BEYOND WHAT IS EXPECTED CAN THE UK DELIVER ITS NEXT UNICORN? Sherry Coutu CBE #scaleup http://www.scaleupreport.com MARKETING SOCIETY 25 November 2015

2. Agenda: ❖ The Scale-Up Report ❖ How do we deliver the next unicorns? ❖ Summary & Q&A The Scale-Up Institute #scaleup Sherry Coutu CBE

3. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE ENTREPRENEURSHIP 2000 Floated second Start-up 1986 Came to the UK to attend the London School of Economics 1987 Became a Computer Programmer 1991 Studied Business at Harvard 1994 Joined my first ‘start-up’ 1995 Founded second Start-up Sherry Coutu CBE < 2000 1997 first ‘startup’ sold #scaleup

4. THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE#scaleup

5. “We want nothing less than to make the UK the technology centre of Europe. This is the path we need to take to create new jobs, new growth and new prosperity in every corner of our country.” George Osborne, Chancellor of the Exchequer The Scale-Up Institute #scaleup Sherry Coutu CBE

6. THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE#scaleup The Department of Business Innovation & Skills (BIS) commissioned The Scale-up report in 2014 I worked with business leaders, academics, entrepreneurs and professional bodies in assessing the economic impact associated with closing our scale-up gap and recommended a series of actions to bring about 255 BN additional GVA and 150,000 additional jobs.

7. A ‘scale-up’ is an enterprise with average annual growth in employees or turnover greater than 20 per cent per annum over a three year period, and with more than 10 employees at the beginning of the period THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE#scaleup

8. We are doing very well on Start-ups... The Scale-Up Institute #scaleup Sherry Coutu CBE

9. Very Few Start-ups Survive and Grow UK businesses that started in 1998 – 10 years later and beyond 221,731 83,165 8,649 5,934 All businesses that started with at least 1 employee Businesses that survived in 2008 Survivors with 10+ employees in 2008 Survivors that achieved at least 1 year of high growth 100% 37.5% 3.9% 2.7% The Scale-Up Institute #scaleup Sherry Coutu CBE

10. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE Research by the academic David Storey has found that the median annual sales of a six-year-old firm in the UK are less than £23,000 avg < £23,000 #scaleup

11. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE Research by the academic David Storey found that Just one per cent have sales of more than £1 million six years after they star 1 % > £ 1m #scaleup

12. But we are doing less well at growing them (!) The Scale-Up Institute #scaleup Sherry Coutu CBE

13. ● The UK has a lower share of large businesses than the US. ● Large firms with more than 250 employees account for 0.5 per cent of firms in the UK but 0.7 per cent in the US. ● This lack of ‘scale up’ means the economy as a whole loses on productivity and growth. THERE IS A SCALE-UP GAP The Scale-Up Institute #scaleup Sherry Coutu CBE

14. The 3 year gross impact of moving 1% of businesses to HGF mode (244% over 3 years) £780 billion + £768 billion The Scale-Up Institute #scaleup Sherry Coutu CBE Analysis by RBS to determine the economy wide impact of one per cent of all businesses with over 10 employees shifting from a stable growth state into high-growth mode would see the total population of HGFs in the UK increase from 10,200 to 12,440 At the end of year three this would result in 2,240 businesses making this shift and the creation of 238,000 jobs and almost £39 billion in additional turnover.

15. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE SCALEUPS DO CONTRIBUTE TO PRODUCTIVITY BIS data show that in the UK average turnover per employee is: • £170,000 for firms with 250 plus employees • £164,000 for firms with 50 to 249 employees • £134,000 for firms with between 10 and 49 employees39

16. Job Creation is linked to scaleups In the UK, HGSBs created the equivalent of approx 4,500 new jobs every week 3 X as many new jobs as the FTSE 100 The Scale-Up Institute #scaleup Sherry Coutu CBE Source: Octopus investments – hgsb study released Oct 20 2015

17. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE SCALE-UPS HAVE HIGH QUALITY JOBS Of the employees surveyed in these high-growth companies who had joined the company from another employer, 80 per cent stated that they were ‘satisfied’ or ‘very satisfied’ with their current job compared to 46 per cent when asked about their previous job #scaleup

18. SCALE-UPS ARE NOT START-UPS Scale-ups have different needs ROI in Scale-ups has big pay-offs for Economic Growth So we should focus some of our attention and policies on scale-ups The Scale-Up Institute #scaleup Sherry Coutu CBE

19. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE What percentage of your resources and attention are focused on scale-ups? THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE QUESTION #scaleup

20. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE GIVEN THAT ECONOMIC GROWTH COMES FROM SCALEUPS AND NOT STARTUPS, HOW DO YOU FEEL ABOUT YOUR ANSWER TO THE PREVIOUS QUESTION? THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE ANSWER #scaleup

21. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE http://www.scaleupreport.comHow can you help the UK deliver the next unicorn ?

22. THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE#scaleup

23. THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE#scaleup

24. THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE#scaleup

25. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE http://www.scaleupreport.comHow can you help the UK deliver the next unicorn ?

26. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE 6 main gaps to focus on… THE SCALE-UP INITIATIVE Sherry Coutu CBE#scaleup 1. The Evidence Gap: public and private sector organisations identify, target and evaluate their support to scale-up companies. 2. The Skills Gap: improve the ecosystem so scale-ups can find employees with the skills they need 3. The Leadership Capacity gap: building their leadership capability 4. The Export Gap: accessing customers in other markets / home market 5. The Finance Gap: accessing the right combination of finance 6. The Infrastructure Gap: navigating infrastructure

27. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBETHE SCALE-UP INITIATIVE Sherry Coutu CBE#scaleup The Evidence Gap: public and private sector organisations identify, target and evaluate their support to scale-up companies.

28. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE KEY RECOMMENDATIONS Recommendation 1: RELEASE the names of scale-ups  Gov’t already holds the information so that local public and private stakeholders can identify, target and evaluate their support to scale-up companies, and evaluate their impact on UK economic growth. http://www.scaleupreport.com #scaleup

29. 8,923 Scale-Ups in England The Scale-Up Institute #scaleup Sherry Coutu CBE

30. Scaleups per 100,000 of population (per local cluster) The Scale-Up Institute #scaleup Sherry Coutu CBE

31. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE SCALE-UPS per LEP Scale-ups are found in each of the 39 LEP areas in England and 6,659 (75 per cent) of the total 8,923 scale-ups are located outside of London. On average a LEP will have approximately 228 scale-ups in their area. These in turn can be grouped into the Number of scale-ups companies that employ between • 10 and 49 employees, • 50 and 250 employees, • >250 employees #scaleup

32. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE http://www.svc2uk.com/the-royal-society-science-50-index/ “The Science 50” Royal Society’s list Illustrates the extent to which science-based scale-ups are a nationwide phenomenon. 36 (72 per cent) of the top 50 fastest growing science- based companies are located outside of London. These 50 science-based companies increased their revenues by an average of 92 % between 2012 and 2013, achieving a combined annual turnover of more than £1.3 billion. Adding more than £600 million to national output last year. SCALE-UPS and SECTORS #scaleup http://www.scaleupreport.com

33. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE Scaleup TRACKING… http://www.scaleupreport.com

34. Are You in favour of the Government INTERNALLY sharing (with other government departments or agencies) the fact that your company is one the fastest growing companies in any sector? The Scale-Up Institute #scaleup Sherry Coutu CBE

35. 97%OF 163 SCALE-UPS 97% WERE IN FAVOUR The Scale-Up Institute #scaleup Sherry Coutu CBE

36. The Report identified 6 main gaps to focus on… THE SCALE-UP INITIATIVE Sherry Coutu CBE#scaleup The Skills Gap: improve the ecosystem so scale-ups can find employees with the skills they need

37. “I would be able to grow my company faster if university graduates had the skills needed to meet my customer demand” 82% OF 163 SCALE-UPS AGREE ATTRACTING TALENT, SKILLS AND BUILDING LEADERSHIP The Scale-Up Institute #scaleup Sherry Coutu CBE

38. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBETHE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE Closing The Scale-Up Gap: Human Capital – Schools & Universities • Entrepreneurship in curriculum? • Entrepreneurs on board of Governors? • Local Scale-up leaders in the class-room as role-models? • Proportion of Local Scale-up companies featured in careers fairs? • Proportion of work experience features local scale-up companies? • Extra-curricular student entrepreneurship activities / clubs? • Proportion of students visiting scale-ups on ‘open days’? #scaleup

39. THE SCALE-UP INITIATIVE Sherry Coutu CBE#scaleup The Leadership Capacity gap: building their leadership capability The Sales Gap: accessing customers in other markets / home market The Finance Gap: accessing the right combination of finance

40. 81% OF 163 SCALE-UPS AGREE The Scale-Up Institute #scaleup Sherry Coutu CBE PROCUREMENT I would be able to grow my company faster if it were easier to attract larger corporates as customers in the UK. Attracting overseas customers more important than overseas investment.

41. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBETHE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE Closing The Scale-Up Gap: Local Government • Celebrate scale-up growth events in your city with the media • Invite scale-up leaders to share their experience with students • Celebrate new customer wins and help create new ones • Encourage local universities to offer courses to scale-up leaders • Meet with a selection of scale-up leaders every month (3 hours) • Persuade real-estate leaders to offer scale-up friendly terms #scaleup

42. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBETHE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE Closing The Scale-Up Gap: Media Shine a light on our most successful scale-up leaders and their companies rather than only start-ups. Profile successful scale-up entrepreneurs at key mile-stones to inspire others (especially the next generation) Review and hold to account initiatives and policies in entrepreneurship: • Are they about starting or growing businesses? • Are they actually providing evidence to support their claims? • What is the cost per job created? • Are they collaborative? #scaleup

43. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBETHE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE Closing The Scale-Up Gap: Lawyers, Accountants, Bankers: • Identify mentors with experience and find effective ways to share their knowledge • Publish the the amount you procure from scale-ups • Offer infrastructure / co-working spaces: #scaleup

44. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBETHE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE Closing The Scale-Up Gap: Large Corporates Short Term: Publish the the amount you procure from scale-ups Long-term: Support existing initiatives that help teachers and schools develop future business skills in our students #scaleup

45. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE We are doing very well on Start-ups... The Scale-Up Institute #scaleup Sherry Coutu CBE

46. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE Let us start today: We can Reverse The Scale-up Gap 2014 2020 2034 #scaleup

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