Scaleup 2018 Review... · 2018. 2. 2. · 26th January, 2018 . @scaleupinst. The ScaleUp Institute...
Transcript of Scaleup 2018 Review... · 2018. 2. 2. · 26th January, 2018 . @scaleupinst. The ScaleUp Institute...
Scaleup 2018
Irene Graham, CEO, ScaleUp Institute The Scaleup North East Launch Newcastle 26th January, 2018
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The ScaleUp Institute was borne out of the desire by the private sector to create an entity to champion the scaleup agenda and make the UK the best place in the world to not just start but scale a business.
We are doing very well on Start-ups...
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But we are doing less well at growing them...
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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
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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%
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SCALEUPS ARE PRODUCTIVE High levels of productivity are twice as common among scaleups. Scaleups
are highly productive, averaging £235,000 turnover per employee.
SCALEUPS CREATE JOBS Across all communities; having UK
and international employees
SCALEUPS ARE HIGH QUALITY Scaleups help create high-quality jobs
with more satisfied employees.
SCALEUPS ARE DIVERSE 47% of all scaleups have at least
one female director
SCALEUPS ARE INNOVATIVE AND INTERNATIONAL
Two-thirds of scaleups are involved in international trade. Scaleups are twice
as likely as their peers to be trading internationally. Scaleups are twice as likely as their peers to have
innovated in the past three years.
SCALEUPS ARE ACROSS ALL SECTORS
Scaleups span the economy: the majority of them operate in sectors
outside of technology
THEY ARE GOOD CORPORATE CITIZENS
74% of scaleups offer opportunities to young people through work
experience, internships or apprenticeships
THEY PLAN TO GROW Most scaleups expect to grow again
in the coming year. 77% expect to achieve 20%+ turnover growth.
52% expect to achieve 20%+ employee growth.
WHY SCALEUPS MATTER
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The National & local Picture
NUMBER OF SCALEUPS NATIONAL FIGURE :ONS DATA 2013-2015
12,180 IN 2015
14,190 IN 2014
12.495 IN 2013
25,530 IN 2015
19,610 IN 2014
20,195 IN 2013
6,270 IN 2015
6,310 IN 2014
5,705 IN 2013
31,440 IN 2015 27,490 IN 2014
26,985 IN 2013
BY EMPLOYEE GROWTH BY TURNOVER GROWTH BY EMPLOYMENT AND TURNOVER TOTAL NO. OF SCALEUPS
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SCALEUP INDICATORS FROM A NATIONAL AND LOCAL PERSPECTIVE
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NORTH EAST LEP EXEMPLAR
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LOCATION LOCATION LOCATION
DRIVING ECONOMIC
DEVELOPMENT THROUGH SCALEUP
ECOSYSTEMS
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What Scaling businesses most need in breaking down barriers
THE 2017 SCALEUP SURVEY AT A GLANCE
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THE 2017 SCALEUP SURVEY AT A GLANCE 343 SCALEUP BUSINESSES GENERATING £6 BILLION IN TURNOVER. THEY ARE HIGHLY PRODUCTIVE AVERAGING £240,000 TURNOVER PER EMPLOYEE.
NORTH EAST LEP EXEMPLAR
Scaleup Leader Academy and Entrepreneurial Mentoring. Partnerships to turn scaleup potential into scaleup performance
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Scaleup Talent
A combination of social skills and tech remain key for school and graduate recruits, although social skills ranks top when force ranked
The key future skill for staff is critical thinking – being able to analyse a situation and make a decision – followed by service orientation
TALENT AND SKILLS
Leadership
Recruiting people with experience of growing a business is key, as are non-exec directors and connection to a network of peers LEADERSHIP
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LEADERSHIP
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Access to Markets
The procurement process and the time it takes to win a contract are the key barriers to working more with government or large corporates
ACCESS TO MARKETS
CORPORATE COLLABORATION AND PROCUREMENT CHECKLIST
Europe and North America are key markets but there is clear appetite to move to more diverse markets such as India and Latin America
Having access to customers and overseas partners as well as staff with the skills to do the deals are key barriers to exporting (more)
ACCESS TO MARKETS
ACCESS TO MARKETS
Access to Finance
While three quarters of scaleups use external finance, 4 in 10 say they do not have the right amount of finance in place for their needs
A quarter are using equity finance now. The key barriers are the loss of control or a lack of suitability
FINANCE
Access to Infrastructure
Scaleups would like easier access to public sector funding for innovation and R&D, general business support and Growth Hubs
The value that scaleups see
in improving their access to
a strong local ecosystem,
including local sources of
knowledge and expertise,
to help them further their
growth journey is apparent
throughout responses.
INFRASTRUCTURE
LEADING PROGRAMMES BREAKING DOWN THE BARRIERS FOR SCALEUPS
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Developments in Public & Corporate Policy
Industrial Strategy Consult 2017; Patient Capital Review & ScaleUp Taskforce
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Five Foundations of the Industrial Strategy
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2017 /2018 RECOMMENDATIONS: SUMMARY SNAPSHOT
● Unleash the data : “Scaleup status” to be officially recognised as a formal business
classification ● Funding for local communities to be tied to the
effective deployment of scaleup initiatives and their impact
● The Department of Education and LEPs to use their convening power to ensure that students at schools, colleges and universities come into contact with the top 50 scaleup business leaders within a local 20-mile radius
● Make a scaleup visa available to communities in which there are 100+ scaleups. MAC review needs to assess this further.
● All communities appoint a scaleup champion
and develop an account management structure for scaling businesses businesses
● Local stakeholders to signpost effective mentorship and matchmaking programmes. Virtuous circle national/local. The Small Business Charter & others should integrate an assessment of ‘scaleup engagement’’ to their analysis
● Public bodies to review and report on procurement procedures for scaleups & improve the manner in which they are promoted to scaleups (champions; contracts finder; sandbox)
● Large companies to report on the level of collaboration and procurement they source from scaleup and companies
● Central Government to align a significant portion of its export activities and resources towards scaleups and create bespoke trade missions for scaleups
● Government and industry to ensure progress is made in closing the finance gap
VISIBLE SCALEUP GROUPS- THE SCALEUP INDEX Based on Companies House data excluding charitable and third sector scaleups and listed companies, which will be subject to separate analysis. Data Analysed by Beauhurst.
NORTH EAST VISIBLE SCALEUP GROUPS BASED ON OECD DEFINITION - THE SCALEUP INDEX
RECOMMENDATIONS: PROGRESS
2016 RECOMMENDATIONS: PROGRESS
MAKING THE UK THE BEST PLACE TO SCALE A BUSINESS
Professor Daniel Isenberg
scaleupinstitute.org.uk #scaleup @scaleupinst
THANK YOU AND GET IN TOUCH [email protected] @scaleupinst
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