scale up deck for syndicateroom 2 feb 2017

SCALE-UP BRIEFINGSyndicate Room (2 Feb 2017)

What does it take to scale a successful global business in the UK?

Sherry Coutu CBE#scaleup

http://www.scaleupreport.comhttp://www.scaleupinstitute.org.uk

http://www.scaleupreport.com/


http://www.scaleupinstitute.org.uk/

Questions Goncalo asked me to address…..

The importance of scale-ups in Britain’s economy and how to access them as investment opportunities…

“What will be the key challenges for ensuring an effective environment for scale-ups post Brexit?”

“Can businesses take advantage of new international markets and partnerships as we refocus our economy away from Europe – do we have the right ecosystem in place to support this?”

“Will this offer new opportunities to attract a wider talent pool , or are there now new challenges to ensure businesses get the talent we need?”

“What should the investment community do to ensure that they can support scale-ups?”

“What is the role for Government or other stakeholders?”

|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE

AUDIENCE CHECK…...

#scaleup


ENTREPRENEURSHIP

2000Floated second Start-up

1986 Came to the UK to attend the London School of Economics

1987Became a Computer

Programmer

1991Studied Business at Harvard

1994Joined my first

‘start-up’

1995Founded second Start-up

Sherry Coutu CBE < 2000

1997first ‘startup’ sold

#scaleup

Advice from a serial entrepreneur and former angel investor

#scaleup

#scaleup

“First mover advantage doesn’t go to the first company that launches, it goes to the first company that scales.”

Reid Hoffman, co-founder of Linkedin

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

Definition

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

#scaleupTHE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE

Start-ups are not SCALE-UPS

Any size*

Any age

Any sector

Any region



We are doing very well on Start-ups...


But we are doing less well at growing them (!)

“Competitive advantage doesn’t go to the nations

that focus on creating companies, it goes to

nations that focus on scaling companies.”


Scaleup businesses are the 'driving force' of UK economy

225,000,000,000


Job Creation is linked to companies that are high growth (2015)

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

Source: Octopus investments – hgsb study released Oct 20 2015

SCALE-UPS ARE NOT START-UPS

Scale-ups have different needsROI 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


SCALE-UPS ARE THROUGHOUT THE COUNTRY

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


National Growth

Fast-growing women-led companies present in all regions of the UK68% headquartered outside London

Scottish women-led companies are growing revenues at a median annual rate of 30%


Growing tech companies Run by Women - Turnover


Turnover in the last year vs Turnover Growth (GBP)

Turnover Growth (GBP) vs Growth Rate (%)

Contributing nearly

£ 2 billion moreto GDP in last year!

Cumulative Revenue

£7,156,288,364

£8,864,226,404

£1,707,725,675


● 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.


Management Consulting

Events Services

Internet

Sector diversity in women-led businesses is strong

PR & Comms

88%

42%

33%

28%

National Growth across sectors

Food & Drink,Edinburgh

Information Technology London

Staffing & recruitment, London

Manufacturing, Cambridge

Advertising Technology,London


KEY RECOMMENDATIONS

Draw attention to scale-up companies and their leaders so that it is easier for them to act as role models to others and to find customers, partners and investors, both at home and overseas.

#scaleup

Closing The Scale-Up Gap:

Drive Local Economic Growth by Releasing Data

So that local public and private organisations can

identifytarget

evaluate

their environment as one where scale-up companies can flourish

Closing The Scale-Up Gap: Release Data

Draw attention to your top 50 local scale-up companies and their leaders so that it is easier for them to:

Attract & Retain

TalentLeadership

Customers & Partners Finance

R&D facilities and Office Space

both at home & overseas.

927women-led companies

£ 1M - £250 Million are expanding at a Median Growth Rate of

28%a year

336 are growing at

50%a year

Contributing nearly

£ 2 billion moreto GDP in last year!

Cumulative Revenue

£7,156,288,364

£8,864,226,404

£1,707,725,675

Sole

nt

Leed

s

Sout

h Ea

st

Ente

rpris

e M

3

50 % of funding and promotion for ‘entrepreneurship’ should be directed towards collaborative initiatives based on track-record and evidence

Case Studies:

• VentureFest Network• SVC2UK

82%

“I would be able to grow my company faster if

applicants had the skills needed to meet my customer demand”


THE SKILLS GAP IS SET TO GET LARGER….

#scaleup

OF 163 SCALE-UPS AGREE

|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBEWorkfinder.com

student-employer encounters created by a Teacher using


Local business leaders


“The speakers told us stories about students of our age who had created businesses and so I thought if they can do it, I can do it too.

I applied to F4S for work experience and worked with them on an appathon contest….

Maitri Panchal

Workfinder.com

Workfinder

Get experience at Britain’s best companies in a few taps.

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

Workfinder.com

We know how important closing the attainment gap is to our long-term economic prosperity, so it’s fantastic that apps like Workfinder give businesses a new and innovative way to connect with students all across the UK

Well done for coming up with such a pioneering idea”.

Paul Drechsler, CBI President

Workfinder.com

“Our members regularly tell us that they struggle to find young adults who are properly equipped for the workplace”

“today’s launch of Workfinder marks a huge step forward in tackling this issue. Not only does it provide young people with great opportunities, it does so in the digital space – the natural domain of those who will excel in the high-tech, high-skilled workplaces of the future.”

Mike CherryFederation of Small Businesses

Workfinder.comWorkfinder.com

Key takeaway Workfinder is closing the skills gap and empowering students, whatever their background

Creating a pipeline of post-brexit talent for our scaleups….

SCALE-UP QUESTIONSBBAA (1 November 2016)



Will Brexit offer new opportunities to attract a wider talent pool or are there now new challenges to ensure businesses get the talent we need?




Closing The Scale-Up Gap: Talent & Skills

• Entrepreneurship in curriculum?• Scaleup Leaders on board of Governors?• Scale-up leaders in the class-room as role-models and mentors?• 50% Scale-up companies in careers fairs?• 50% of work experience in scale-up companies?• Extra-curricular student entrepreneurship activities / clubs?• 50% of students visiting scale-ups on ‘open days’?

Exemplars:

• Barclays Life-skills Programme• Founders4Schools• Careers & Enterprise Company

Closing The Scale-Up Gap: Leadership Development

Identify mentors with experience and find effective ways to share their knowledge

Case Studies & Exemplars:

• Goldman Sachs 10,000 Small Business Programme

• Mentorsme

• Silicon Valley Comes to the UK

• School for Scaleups

• The Elite Programme (LSE)

Closing The Scale-Up Gap: Assist Expansion at home & abroad

Identify mentors with experience and find effective ways to share their knowledge

Case Studies & Exemplars:

• Mayor’s Go-to-Grow Programme• Silicon Valley Comes to the UK• The Elite Programme (LSE)• UKTI• Catapults




What is the role for Government & other stakeholders ?




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




What should the investment community do to ensure that they can support scale-ups ?




Closing The Scale-Up Gap: Investment Community

Draw attention to scale-up companies and their leaders so that it is easier for them to act as role models to others and to find customers, partners and investors, both at home and overseas

Case Studies:

• Elite• Venturefest• SVC2UK




What is the role for Government & other stakeholders ?




Closing The Scale-Up Gap: Media & Cultural Organisations

• 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)• Reviewing and holding to account initiatives and policies in entrepreneurship:

• Are they about starting or growing businesses? • Are they providing evidence to support their claims? • What is the cost per job created? • Are they collaborative?

Closing The Scale-Up Gap: Large CorporatesAccounting FirmsConsulting Firms

• Publish the the amount you procure from scale-ups• Offer infrastructure for product dev’t and testing• Support skill-building programmes for local scale-up leaders

SCALE-UP BRIEFING

What does it take to scale a successful global business in the UK?

SkillsLeadership Training on Access to Markets

Finance

Workfinder.com

WorkfinderSign up for FREE for a chance to win work experience vouchers children at a school of your choicewww.workfinder.com Invite code: syndicateroom

SCALE-UP QUESTIONS



What will be the key challenges for ensuring an effective environment for scale-ups post Brexit?




SCALE-UP QUESTIONS



What will be the key opportunities we have to ensure

an effective environment for scale-ups post Brexit?


