uiin dublin 6 june 2017

The ScaleUp Challenge

University Industry Innovation Network

Sherry Coutu, Chair, ScaleUp Institute

www.scaleupinstitute.org.uk/8 June 2017

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

“The Scaleup Challenge”

“The benefits of scale ups”

“The role universities can play”

“The role of place”

Audience Check

POLICY

FINANCE

CULTURE

SUPPORTS

HUMAN

CAPITAL

MARKETS

ENTREPRENEURS

#scaleup

BACKGROUND

The Department of Business Innovation &

Skills commissioned The Scaleup Report

in 2014. It was compiled through detailed

research, analysis and interviews

undertaken with leading industry sectors,

academics, business leaders,

entrepreneurs and policy makers.

#scaleup @scaleupinst scaleupinstitute.org.uk

OECD DEFINITION of a SCALEUP BUSINESS:

A ‘scaleup’ 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.



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


But we are doing less well at growing them

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%


THERE IS A SCALE-UP GAP

▪ Many European economies, including UK

are as effective as US in creating new

businesses

▪ Not enough of them grow – displacing

older firms

▪ The UK has a lower share of large

businesses than the US

▪ Large firms with more than 250 employees

account for 0.5% of firms in the UK but

0.7% in the US

▪ This lack of ‘scale up’ means the economy

as a whole loses on productivity and

growth.

Nesta (2011). A Look at Business Growth and Contraction in

Europe

http://www.scaleupreport.com


http://www.scaleupreport.com

Turnover Growth (GBP) vs Growth Rate (%)

Turnover in the last year vs Turnover Growth (GBP)





14

Scaleup businesses are the 'driving

force' of UK economy

“Competitive advantage doesn’t go to the nations

that focus on creating companies, it goes to

nations that focus on scaling companies.”

#scaleupTHE 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.”

So what is your university doing with scaleups?


225,000,000,000


WHY SCALEUPS MATTER


SCALEUPS ARE PRODUCTIVE

SCALEUPS ARE INNOVATIVE

SACLEUPS ARE INTERNATIONAL

SCALEUPS ARE UK WIDE

SCALEUPS ARE ACROSS ALL SECTORS

SCALEUPS CREATE GREAT JOBS

NATIONAL GROWTH ACROSS SECTORS

Food & Drink, EdinburghInformation

Technology London

Staffing &

recruitment, LondonManufacturing,

CambridgeAdvertising Technology,

London


AREAS OF SPECIAL

FOCUS

CREATIVE INDUSTRIES

STEM

LIFE SCIENCES

GLA

225,000,000,000


#scaleup @scaleup scaleupinstitute.org.uk

SCALEUPS AT A NATIONAL LEVEL

IN 2013: THIS WAS THE

NUMBER OF SCALEUPS IN

THE UK

IN 2014, THAT NUMBER

INCREASED

IN 2015, THE

AMOUNT GREW

FURTHER

9,979

10,754

11,575

#scaleup @scaleup scaleupinstitute.org.uk

Key factors for a successful

ScaleUp ecosystem

#scaleup scaleupinstitute.org.uk33

SCALEUPS AT A NATIONAL AND

LOCAL LEVEL


IN 2014 THE REPORT IDENTIFIED

6 MAIN GAPS TO FOCUS ON:

The Evidence Gap public and private sector organisations identify, target

and evaluate their support to scale-up companies

The Skills Gapimprove the ecosystem so scale-ups can find employees

with the skills they need

The Leadership Capacity Gapbuilding their leadership capability

The Finance Gap accessing the right combination of finance

The Infrastructure Gapnavigating infrastructure

The Markets Gap accessing customers in other markets/ home market


Key factors for a successful

ScaleUp ecosystem

#scaleup scaleupinstitute.org.uk36





37

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

THE SKILLS GAP IS SET TO GET LARGER….

#scaleup

OF 163 SCALE-UPS AGREE

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

www.workfinder.com

82%

“I would be able to grow my

company faster if applicants had

the skills needed to meet my

customer demand”

“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 Cherry

Federation of Small Businesses

82%




customer demand”




customer demand”

#scaleup @scaleupinstscaleupinstitute.org.uk

University Case Studies:

ScaleupIndustry Leaders

6 Internships per student

Scaleup businesses

Workfinder.com

“The speakers told us stories

about students of our age

who had created businesses

and so I thought if they can

do it, I could too.

Maitri Panchal

www.workfinder.com

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 Cherry

Federation of Small Businesses

www.workfinder.com

The role Strathclyde Business School could play?

● Do you have

a Growth

Advantage

Programme?

Make it easier

for your startups

and scaleups and

‘spawn-outs’ and

spinouts to

engage with

larget corporates

who you work

with

“What Works.” Careers and Enterprise Company. Dec 2016.

Provide

guidance to

staff so they

understand

which

interventions

work best

Make it

easier for

your

students to

engage with

the scaleup

business

population

Workfinder.com

Workfinder

Get experience at

Britain’s best companies

in a few taps.

www.workfinder.com

Can your university be a better scaleup citizen?

● Create or sign-post to a ‘good’ leadership development provider in your

local community

● Matchmaking your students and alumni with Corporates

● Open up research facilities to scaleups (Infrastructure)

● Convene scaleup ‘peer to peer’ roundtables

● Make it easier for your students to engage with the scaleup businesses

● Appoint a ScaleUp Champion

● Have a section on your website dedicated to scaleups

● Monitor your internships by ’type of company’


Leadership

Development

Programme for

Scaleups?

6 internships each?

120 Student Clubs?

Workfinder

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

Let us start today:

Together we can Reverse The Scale-up Gap that dampens innovation

2014 2020 2034

#scaleup

THANK YOUGet in touch:

@scoutu