THE SPONSORING ORGANIZATIONS

Highlands and Islands Enterprise (HIE) is the Scottish Government’s economic and community development agency for a diverse region that covers more than half of Scotland. In HIE’s role to develop sustainable economic growth across the region, it assists ambitious and aspirational businesses and social enterprises at all key stages of their growth journey to make the Highlands and Islands a more competitive and attractive place.

Scottish Enterprise (SE) is one of Scotland’s economic development agencies and a non-departmental public body of the Scottish Government. SE works with partners in public and private sectors to identify and exploit the best opportunities to deliver a significant, lasting effect on the Scottish economy. The organization also works closely with businesses to develop the entrepreneurial ecosystem and support within the country.

Scotland

A WINNING COMBINATION: MIT AND SCOTLAND COLLABORATE TO ACCELERATE BUSINESS DEVELOPMENT

EDP REGIONAL SUCCESS STORY

A BO UT E D P

MIT has a long history of working with countries around the world to educate organizations—as well as their workforce—to inspire them to think about business in a uniquely different way. For more than a decade, two Scottish economic development agencies have partnered to support the success of a variety of entrepreneurial ventures within the country through participation in the MIT Sloan Entrepreneurship Development Program (EDP).

The program was chosen because it introduces MIT’s vibrant entrepreneurial culture, entrepreneurial network, and educational opportunities, as well as MIT’s world-class commercialization and technology transfer system. In addition, these government-sponsored economic development groups recognize that the program is instrumental in instilling a culture of ambition while equipping its country’s entrepreneurs with the skills and knowledge needed to accelerate their growth potential.

THE CHALLENGES

Because Scotland is a small country with sparsely populated areas, it is home to numerous small businesses. In turn, these companies must work harder to develop and grow their customer base, especially internationally. The program sponsors explain that while Scotland is good at encouraging start-ups, it needs to help these entrepreneurial businesses flourish and subsequently grow into mid-sized businesses of scale with global reach. Another challenge many Scottish organizations face is access to finance beyond SEED/angel funding.

E X ECU T I V E .M I T.E D U/SCOT L A N D

“It has been such a joy to work with Scotland, and all parties

have benefited greatly from this relationship. To see our material be so enthusiastically embraced and applied, and then most of all

to see the results, has been so rewarding. Having a long-term relationship has allowed us to

build momentum and customize the materials, which has been

fundamental to eye popping impact quantified in the report by HIE. It is not just a few, but rather a vibrant and growing community

of entrepreneurs in Scotland now who are highly skilled and

share a common language, which will continue to pay enormous

economic and social dividends well into the future.”

— Bill AuletFaculty Director

EDP

WHY MIT HIE and SE both sent their first cohorts to EDP in 2007. They selected MIT because the School is consistently ranked as one of the top universities in the world and for the strong reputation of its practice-based approach to teaching and learning. Specifically, the Scotland sponsors chose the Entrepreneurship Development Program because they felt the course offered entrepreneurs a structured and disciplined approach to start, grow, and scale their business-es—equipping them with the skills, tools, and techniques to identify and prioritize market opportunities and also avoid the pitfalls that can beset companies in growth mode. EDP cohort attendees offer a variety of reasons why they want to take part in the program, including positive feedback from previous participants, the program’s applicability to a wide variety of business and growth opportunities, the course’s focused intensive format, the caliber of its attendees, and the unparalleled access to a network of global participants and world-renowned faculty.

MIT Sloan Executive Education’s portfolio of programs reflect MIT Sloan’s core mission to develop principled, innovative leaders who improve the world and to generate ideas that advance management practice—in an environment designed to foster extensive peer-to-peer interaction and a wide range of professional and cultural exchanges.

THE ENTREPRENEURSHIP DEVELOPMENT PROGRAM

This intensive, week-long program is aimed at highly ambitious entrepreneurs from organizations with international potential. The curriculum focuses on honing skills that can be applied in entrepreneurship endeavors and connects participants to a global entrepreneurial network. It also gives participants exposure to the greater Boston business ecosystem—including Cambridge, which is a world-renowned hub of innovation.

A globally recognized program that blends cutting-edge classroom learning with visits to leading Boston-area companies, EDP is led by Bill Aulet, a serial entrepreneur and Professor of the Practice at MIT Sloan. The course takes participants through the entire Innovation Driven Enterprise (IDE) venture: creation, growth, investment, and the exit process. In order to help cohort companies gain the most value from their North American experience, the Scotland sponsors also organize a variety of events outside of the program that help to expand the participants’ network and comprehension of business in the U.S.

Learn more about EDP at https://executive.mit.edu/edp

Collaborating

Since 2007

“A lot of executive education is targeted towards employees of large multinationals but SMEs are the engine of sustainable economic growth. Therefore,

it is vital that we equip the entrepreneurs within our

regions with the skills, ambition, confidence and tools to

accelerate their business growth and scale up.”

— Highlands and Islands

Enterprise (HIE)

“SE companies and staff have been attending EDP for 10-plus

years, and each person that comes back uses the teaching,

spreads the word and year after year we are inundated with entrepreneurs who are

desperate to attend EDP.”

— Scottish Enterprise (SE)

PARTICIPANT SELECTION CRITERIA

Attendance in EDP is highly competitive. In an effort to find the best partici-pants, candidates from a pool of businesses with high-growth potential must go through a rigorous nomination process. As a first step, they are invited to submit a written application outlining their journey as an entrepreneur, their ambitions and leadership approach, and how they plan to implement the EDP learning experience at their organization. The written applications are then assessed by a panel, after which successful candidates are invited to a face-to-face interview. Typically, four or five businesses are selected from the pool, and are usually chosen from companies with significant growth potential within key sectors of the region: energy, food and drink, tourism, technology and advanced engineering, life sciences, finance and business services, and creative industries. This demanding approach is necessary to ensure the strongest candidates are chosen for the cohort. Once the selection process is complete, those chosen are offered 50-100% funding support depending on their size and revenue-generating status.

In preparation for this selection process, candidates are offered one-on-one coaching on presentation strategy, preparation, delivery, and pitching skills via phone or Skype. Whether or not they are chosen, applicants have found these skills invaluable and also transferrable to a business context. Once the final participants are selected, HIE links the cohort with previous attendees to discuss lessons learned, as well as the changes implemented as a result of EDP. These peer-to-peer discussions are highly valued by each new cohort. At the conclusion of the program, all participant organizations complete a reflective report, after which the account manager works with each company to help implement strategies learned. This approach allows HIE and SE to track factors such as new investment, new markets, increases in employment or turnover, and profitability. The Scotland sponsors also conduct independent evaluations every three years.

HIE explains that the

ROI from 2013 to 2016 has been

calculated to be at least 9:1 and as high as 28:1

for companies that participated in the program.

E X ECU T I V E .M I T.E D U/SCOT L A N D

PROGRAM BENEFITS

Through the years, EDP has assisted many organizations and entrepre-neurs from Scotland to become successful and investor-ready by helping them focus on their specific business goals. As a result, Scotland has achieved impressive growth and created new, high-value jobs, which ultimately contribute to sustainable economic growth and more vibrant communities.

EDP participants from Scotland have consistently mentioned several key benefits of the program:

• Exposure to the vibrant MIT ecosystem and local business leaders• Introduction to a world-class education and coaches, as well as an

intense program that mirrors the fast pace of their business environment• Access to an unprecedented international network of like-minded

entrepreneurs • The ability to define a relevant life-cycle structure and the experience of

navigating the entire venture creation process• Immersion into a new way of thinking and learning about business,

which results in a raised level of ambition• An opportunity to raise larger investments from investors both domesti-

cally and internationally • The importance of resilience; how to cope with adversity and bounce

back fast• The advantage of working together and bonding as a team

THE RESULTS

HIE has commissioned independent evaluations to assess the impact of EDP. Cohort organizations have reported significant positive shifts in individual and business processes, which have resulted in fundamental changes to their overall strategic outlook. Other positive outcomes of the Entrepreneurship Development Program include improved growth and sales plans, as well as increased leadership development. In fact, many cohort participants describe EDP as “transformational.”

ADDITIONAL OUTCOMES

Because of the incredible success Scotland has enjoyed with the EDP collaboration, MIT has been able to develop other ground-breaking ventures in conjunction with these Scottish organizations, which, in turn, have nurtured and solidified a mutually beneficial relationship. These other programs include:

• MIT Industrial Liaison Program (ILP). The ILP helps members monitor MIT research develop-ments, identifies MIT resources of interest, arranges face-to-face meetings with MIT faculty, and offers advice on research sponsorship or technology licensing opportunities.

• MIT Regional Entrepreneurship Acceleration Program (REAP) is a multi-year program that educates teams in the development and execution of acceleration strategy and focuses on entrepreneurial activity to enhance economic development and job creation

• Scale Summer School is a three-day residential program that con-venes a cohort of leading entrepreneurial experts and ambitious growth organizations with a focus on scaling businesses.

• Structured Steps in the Entrepreneur’s Journey is taught by MIT Sloan Senior Lecturer Bill Aulet (who also leads EDP).

ONGOING COLLABORATION

In November 2018, HIE, SE, and the Scottish Funding Council organized a learning journey for senior staff from nine Scottish universities. The purpose of the visit was to exchange knowledge and to learn from best practice at MIT around stimulating start-ups and potential businesses of scale; and creating a supportive yet challenging ecosystem that stimulates entrepreneurs to achieve their full potential.

WILDERNESS SCOTLAND One of the leading adventure tour companies in the world, Wilderness Scotland specializes in organizing self-guided and custom vacations across the Highlands and Islands.

“Reflecting upon the whole EDP experience, I truly appreciate the support from HIE in making it happen. The program is intense but rewarding. In fact, I think many of the rewards come long after you have returned home; once you have had the opportunity to take stock and absorb all aspects of the learning experience. Attending MIT and working alongside a diverse mix of like-minded and aspirational individuals is both energising and educational. The quality of the faculty at MIT shines through and helps create a friendly and exciting environment in which to learn.” — Paul Easto, Managing Director (and co-founder), Wilderness Scotland Ltd.

OCEAN KINETICSOcean Kinetics Ltd is an engineering company that offers a mix of engineering services and targets four sectors: ports and utilities, marine renewables, oil and gas, and aquaculture.

“The quality of the teaching was excellent, the content was relevant for our stage of business growth, the pace was fast and furious – it was a great experience and the best course I have been on.” — John Henderson, Managing Director (and founder), Ocean Kinetics

NEW WAVE FOODSNew Wave Foods sustainably grows, harvests, processes, and sells a variety of seaweeds, with the ultimate goal of becoming Scotland’s leading processor of edible seaweed.

“Briefly, my experience was fantastic. The week made a huge impression on me and has permanently changed by thinking and operations. It was fascinating and, while intense, there was an extraordinary energy throughout that I found engaging and motivating. I did not want it to stop at the end of the week and that is something that shocked me. I expected to be exhausted – and I was! – but I really enjoyed living life at that pace and being around such incredible people.” — Peter Elbourne, Operations Director, New Wave Foods

MALLZEE Mallzee is a leading non-retailer shopping app in the UK and recently launched Mallzee Insights—a range of retail analytics products.

“I think this could be one of the best uses of resources for supporting early stage companies.” — Cally Russell, CEO, Mallzee

FEATURED PARTICIPANT COMPANIES

THE CHALLENGES

These organizations faced many of the same challenges: • Their disparate locations across Scotland and distance from international markets • The need to understand how to create and maintain a spirit of entrepreneurship• A desire to gain skills necessary to expand or accelerate growth either regionally or internationally• How to adapt a company culture that would keep pace with rapid development

THE RESULTS

While the results varied depending on the needs of each participating organization, all agreed that some universal benefits could be applied to any organization in any industry. Specifically:• The rigorous, practical, hands-on aspect of the program• The networking aspect of the program, which allowed participants to develop strong relationships with a

diverse, multinational, yet like-minded group• The world-class MIT Sloan faculty and application of their real-world experience