Art of scaling gracefully for the FD Centre on 25 May 2017

The FD Centre

Sherry Coutu CBE

#scaleup

#founders4school

25 May 2017

ENTREPRENEURSHIP

2000

Floated second Start-up

1986

Came to the UK to attend the London

School of Economics

1987

Became a Computer

Programmer

1991

Studied Business at Harvard

1994

Joined my first

‘start-up’

1995

Founded second Start-up

Sherry Coutu CBE < 2000

1997

first ‘startup’ sold

#scaleup

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


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

The Scale-Up Institute #scaleup Sherry Coutu CBE

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


Very Few Start-ups Survive and GrowUK 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%


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

Research by the academic David Storey has found that the

median annual sales of a six-year-old firm in the UK are less than £23,000

avg < £23,000

#scaleup


Research by the academic David Storey found that

Just one per cent have sales of more than £1 million six years after they star

1 % > £ 1m

#scaleup

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

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

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

http://www.scaleupreport.com

http://www.scaleupreport.com

#scaleup @scaleup scaleupinstitute.org.uk

225,000,000,000

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

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


#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

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


6 main gaps to focus on…

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

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

#scaleup



Media

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)

Review and hold to account initiatives and policies in entrepreneurship:

• Are they about starting or growing businesses?

• Are they actually providing evidence to support their claims?

• What is the cost per job created?

• Are they collaborative?

#scaleup



Lawyers, Accountants, Bankers:

• Identify mentors with experience and find effective ways to

share their knowledge

• Publish the the amount you procure from scale-ups

• Offer infrastructure / co-working spaces:

#scaleup



Large Corporates

Short Term:

Publish the the amount you procure from scale-ups

Long-term:

Support existing initiatives that help teachers and schools

develop future business skills in our students

#scaleup


http://www.scaleupreport.com How do you help your clients become one of the next unicorns ?


Make sure you have chosen a

big enough problem


Embed yourself in the right Network


Recruit People who have done it before


Hire for tomorrow, not for today


Embrace Diversity


Nurture Company Values


Build systems that scale


Test product / market fit


Take the right kind of money

…….. at the right time


Take the right kind of money

…….. at the right time


Let us start today:

We can Reverse The Scale-up Gap

2014 2020 2034

#scaleup

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