scale up summary presentation (ncub) july 4th 2016
TRANSCRIPT
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
SCALE-UP SKILLS BRIEFING
DRIVING ECONOMIC GROWTH
Sherry Coutu CBE#scaleuphttp://www.scaleupreport.com
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
ScaleupsSkills & LEPS
THE SCALE-UP INITIATIVE Sherry Coutu CBE#scaleup
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
“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
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
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
THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE#scaleup
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
Start-ups are not SCALE-UPS
Any size*
Any age
Any sector
Any region
THE SCALE-UP INITIATIVE Sherry Coutu CBE#scaleup
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
We are doing very well on Start-ups...
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
But we are doing less well at growing them (!)
● 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 Skills Briefing #scaleup Sherry Coutu CBE
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
www.scaleupreport.org
The Scale-Up Skills Briefing #scaleup Sherry Coutu CBE
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
“Competitive advantage doesn’t go to the nations
that focus on creating companies, it goes to
nations that focus on scaling companies.”
THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE#scaleup
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
NET Impact of closing the scale up gap in 20 years
225,000,000,000
THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE#scaleup
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
“This report makes a compelling case for getting behind the UK’s high growth ‘scale-ups’ and I hope all political parties seriously consider its recommendations.
These firms are already having a transformational impact, we just need more of them to grow.
Helping them access the talent they need, develop their leadership and access new markets are the priorities.”
John Cridland,Director-GeneralCBI
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
These recommendations focus on steps that can enable and leverage local networks and provide them with actionable insights to mobilize collective action; the mind-set is one of using existing resources more effectively, not just providing more support.
Michael Porter, Harvard Business School
THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE#scaleup
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
“Economic growth doesn’t happen in LEPS that
focus on startups or large companies, it goes to
those that focus on scaling companies.”
THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE#scaleup
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
“This report is a welcome contribution in the context of Greater Manchester’s recent devolution deal with Government and will support us as we look to deliver targeted business support to our local high growth firms.”
Mike Blackburn Chair of Greater Manchester LEP
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH 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
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
https://www.founders4schools.org.uk/local-authorities/#/
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
https://www.founders4schools.org.uk/women/
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE#scaleup
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
World leading universities such as Cambridge play a crucial role in creating business through the generation of innovation, entrepreneurship, and funding opportunities, but it is the talent and expertise of our students and academics that will help these businesses grow.”
Leszek Borysiewicz, Vice Chancellor of Cambridge University
THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE#scaleup
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
Key Factors for a successful Scale-up ecosystemIN SUMMARY
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
The Report identified 6 main gaps as to why companies do not scale in the UK …
THE SCALE-UP INITIAT 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 Customer Gap: accessing corporate customers in other markets / home market
5. The Finance Gap: accessing the right combination of finance
6. The Infrastructure Gap: navigating infrastructure
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBETHE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
http://www.scaleupreport.com
#scaleup
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|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
REPORT RECAPSkills & LEPS
THE SCALE-UP INITIATIVE Sherry Coutu CBE#scaleup
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
KEY RECOMMENDATIONS
Recommendation 3
Ensure that students at schools, colleges and universities come into contact with the top 50 scale-up business-leaders within 20 miles of their establishment
Case Studies: Estonia, Founders4Schools, NACUE, Telefonica’s Think Big
#scaleup
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
79%OF 442 CEOs AGREE
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE#scaleup
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
990,000 1,200,000
. Source: Adzuna
THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
THERE ARE A LARGE NUMBER OF ‘OPEN POSITIONS’
These open positions present a productivity problem because the businesses are turning away customer orders because they can’t get the staff….
#scaleup
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
1MNumber of new science, engineering and tech professionals required in the UK by 2020 (Royal Society 2014)
5.8MNumber of people forecast to be needed in the app economy by 2018 (OECD)
THE SKILLS GAP IS SET TO GET LARGER….
#scaleup
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
The Scale-Up Skills Briefing #scaleup Sherry Coutu CBE
Source: Octopus investments – hgsb study released Oct 20 2015
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
100 %Net New Jobs created in Europe in the past 5 years were from companies less than 5 years old….
THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
THE PACE OF CHANGE IN OUR ECONOMIES IS HIGH AND INCREASING
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBETHE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
JOBS OF THE ‘OLD ECONOMY’ JUST DON’T EXIST ANYMORE’
#scaleup
“1 Billion young people will start work in the next decade - only 40% in jobs that now exist”
The Economist, 23 Jan 2016
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
THE SKILLS GAP IS SET TO GET LARGER….
#scaleup
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
THE SKILLS GAP IS SET TO GET LARGER….
#scaleup
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
THE SKILLS GAP IS SET TO GET LARGER….
#scaleup
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
THE SKILLS GAP IS SET TO GET LARGER….
#scaleup
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
THE SKILLS GAP IS SET TO GET LARGER….
#scaleup
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
KEY INFLUENCERS
#scaleup
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
Teacher Productivity
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
Learner Attainment
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
Figure 4. The value of Apps in helping learning (students) (Longfield iPad Research, 2012)
Figure 5. The value of Apps in helping teaching (staff) (Longfield iPad research, 2012)
Teacher ProductivityLearner Attainment
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
REPORT RECAPSkills• Case Studies Review of LEPS
THE SCALE-UP INITIATIVE Sherry Coutu CBE#scaleup
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
free to use
productivity gains
Parental engagement
35 million users, teachers and students, in over 220.000 schools across the world to date.
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
Edmodo, a safe platform where teachers and students can collaborate, share content, and leverage educational apps to augment in-classroom learning
Edmodo is interesting because of the way it has molded social into a shape that suits education at the K-12 level: as a free service that's teacher-friendly and easy for school districts to adopt, typically after they find out their teachers are already using it.
Using Edmodo, teachers invite students into private groups that can be used for online classroom discussions, but in a format that keeps the teacher firmly in control.
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
35 million users, teachers and students
in over 220.000 schools across the world to date.
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
free to use
time savings
learner STEM attainment gains
Massive cost savings to the ‘system’
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
Assistance in choosing the most relevant speakers: By Curriculum Relevance
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
Assistance in choosing the most relevant speakers: By Gender & Curriculum
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
If you clicked the
blue ‘hat’, you go to the event page which shows that the teacher asked these leaders to visit during a day they spoke about college applications to 90 Year 11 Students at this school.
The teacher had chosen three leaders to illustrate careers in this instance.
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
Impact
54% of ‘students’ choose a STEM subject after a
teacher uses our service
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
Work Experience Pilot:
#scaleup
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
Timing of the intervention is key
#scaleup
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
Inspiration is localbusiness leaders visit local schools across the country
Business Leaders Spread Most Deprived Areas
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
Inspiration is localbusiness leaders visit local schools across the country
Most deprived areas Events Spread
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
Inspiration is localbusiness leaders visit local schools across the country
Most deprived areas Business Leader Spread by LEP
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
National Benchmarking: Cambridge Leads!
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
National Benchmarking: Cambridge Leads!
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE#scaleup
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE#scaleup
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
This service allows the viewer to find women-led businesses in any locale.
In this case, you can see that the viewer has chosen to view the women-led businesses growing by 20% or more (there are 42)
By clicking on any of the icons, this will take the user to information about the company
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
F4S tracks the number of student-employer interactions per LEP
Note that Cambridgeshire has 354 Business leaders with revenues of more than £1 Million
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
This website allows the viewer to find women-led businesses in any locale.
In this case, you can see that the viewer has chosen to view the women-led businesses growing by 20% or more (there are 42)
Clicking on the red icon, will take the user to information about the company
Clicking on the blue icon, will take the user to the school that invited the business leader into their classroom
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
Inspiration is local
Cambridge Leads Student-Employer Interactions per 100,000 of population
|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
SCALE-UP BRIEFINGLEPS DRIVING ECONOMIC GROWTH
Sherry Coutu CBE#scaleuphttp://www.scaleupreport.com