Founders4schools / scale up summary presentation 9 march 2016
1. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
SCALE-UP BRIEFING
ECONOMIC GROWTH & SKILLS
10 March 2016
Sherry Coutu CBE
#scaleup
http://www.scaleupreport.com
2. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
REPORT RECAP
Focus on women
Dive into Skills
THE SCALE-UP INITIATIVE Sherry Coutu CBE#scaleup
3. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
Definition
A âscale-upâ 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
4. |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
5. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
We are doing very well on Start-ups...
6. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
But we are doing less well at growing them (!)
The Scale-Up Institute #scaleup Sherry Coutu CBE
7. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
STARTUPS DO NOT CONTRIBUTE TO NATIONAL OUTPUT
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 ÂŁ23,000
This research also found that only a small group of start-ups achieve
significant growth in revenues â just one per cent have sales of more
than ÂŁ1 million six years after they start
1 %
It also found that the average new firm, despite the hype that surrounds
startups, made a negligible contribution to British productivity growth.
#scaleup
8. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
âFirst mover advantage doesnât go to the first company that
launches, it goes to the first company that scales.â
Reid Hoffman, co-founder of Linkedin
THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE#scaleup
9. |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 mindset 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
10. |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 mindset 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
11. |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.â
Leszek Borysiewicz,
Vice Chancellor of Cambridge University
THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE#scaleup
12. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
âThis report makes a compelling
case for getting behind the UKâs
high growth âscale-upsâ 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.â
John Cridland,
Director-General
CBI
13. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
âA welcome contribution in
the context of Greater
Manchesterâs recent
devolution deal with
Government and will support
us as we look to deliver
targeted business support to
our local high growth firms.â
Mike Blackburn
Chair of Greater Manchester LEP
14. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
âCompetitive advantage doesnât go to the nations
that focus on creating companies, it goes to
nations that focus on scaling companies.â
THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE#scaleup
15. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
âEconomic growth doesnât happen in clusters that
focus on creating companies, it goes to those that
focus on scaling companies.â
THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE#scaleup
16. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
The Report identified 6 main gaps as to why
companies cannot scale in the UK âŠ
THE SCALE-UP INITIATIVE 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 Export Gap: accessing customers in other markets /
home market
5. The Finance Gap: accessing the right combination of finance
6. The Infrastructure Gap: navigating infrastructure
17. |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
18. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
Methodology
8,923
THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE#scaleup
http://www.scaleupreport.org/scaleup-report.pdf
Source: ONS
19. |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
http://www2.deloitte.com/uk/en/pages/strategy/articles/the-scale-up-challenge.html
20. 762
women-led companies
ÂŁ 1M - ÂŁ250 Million
are expanding at a Median Growth Rate of
30%
a year
Source: Companies House (via Duedil API)
21. Anya Hindmarch
Barclays
Bailey Fisher Executive Search
BBC
CBI
Cambridge Network
Careers & Enterprise Company
Creative Entrepreneurs
Decoded
Dot Everyone
Entiq
Facebook
Fidelio Partners
FieldHouse Associates
Genius Foods
Go on UK
Seven Hills
Skills Matter
STEMnet
SVC2UK
TeachFirst
The Tech Partnership
Tech UK
Tech London Advocates Womenintech
The Upgroup
Unruly
US Govt
WeAreTheCity
Wired
WISE Campaign
WIT
YourLife Campaign
Google Campus
Grant Thornton
Goldman Sachs 10,000 Small Businesses
Imperial Innovations
Innovate UK
Inspiring Fifty
Life Skills
London & Partners
London Stock Exchange Group
Merian Ventures
MIT
New Entrepreneurs Foundation
Salesforce
Scale Up Institute
Second Home
Supporters
22. National Growth across sectors
Food & Drink,
Edinburgh
Information
Technology,
London
Staffing &
recruitment,
London
Manufacturing
, Cambridge
Advertising
Technology,
London
23. Contributing nearly
ÂŁ 2 billion more
to GDP in last year!
Cumulative Revenue ÂŁ7,156,288,364 ÂŁ8,864,226,404 ÂŁ1,707,725,675
24. Average turnover up by more than
ÂŁ 2 Million in last year!
Average Revenue per
women-led company ÂŁ9,631,613 ÂŁ11,930,318 ÂŁ2,298,419
Median Revenue ÂŁ2,171,467 ÂŁ3,236,190 ÂŁ881,593
29. National Growth
Fast-growing women-led companies
present in all regions of the UK
68% headquartered outside
London
Scottish women-led companies are
growing revenues at a median annual
rate of 30%
30. National Growth
Greater London leads the way with 273 women-led
businesses (44 in Camden).
Beyond London:
Leeds is a stand out city with 43 women-led companies,
Enterprise M3 and the South East, home to 29 women-
led companies each
Greater Birmingham and Solent with 25 each.
34. the proportion of women led-businesses
increases
as the size of the businesses increases
&
as the growth rate of the businesses
increases, compared to businesses
overall.
11% of businesses are women-
led
35. |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
âââ
âââ
â â
âââ
â
37. |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 oldâŠ.
THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
THE PACE OF CHANGE IN OUR ECONOMIES IS HIGH AND INCREASING
38. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
THE SKILLS GAP IS SET TO GET LARGERâŠ.
#scaleup
39. 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
40. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBETHE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
THERE ARE A LARGE NUMBER OF âOPEN POSITIONSâ
#scaleup
â1 Billion young people will start work in the next decade - only 40% in jobs that now existâ
The Economist, 23 Jan 2016
41. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
THE SKILLS GAP IS SET TO GET LARGERâŠ.
#scaleup
42. |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 âOPEN POSITIONSâ
#scaleup
43. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
1M
Number of new science,
engineering and tech
professionals required in the UK
by 2020 (Royal Society 2014)
5.8M
Number of people forecast to
be needed in the app economy
by 2018 (OECD)
THE SKILLS GAP IS SET TO GET LARGERâŠ.
#scaleup
44. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
THE SKILLS GAP IS SET TO GET LARGERâŠ.
#scaleup
45. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
THE SKILLS GAP IS SET TO GET LARGERâŠ.
#scaleup
46. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
THE SKILLS GAP IS SET TO GET LARGERâŠ.
#scaleup
56. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
Inspiration is local
9,200+ business leaders visit local schools
across the country
Business Leaders Spread Most Deprived Areas
57. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
Inspiration is local
9,300+ business leaders visit local schools
across the country
Most deprived areas Business Leader Spread by LEP
58. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
Inspiration is local
9,300+ business leaders visit local schools
across the country
Most deprived areas Events Spread
59. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
Impact
54% of âstudentsâ choose a
STEM subject after a
teacher uses our service
Cost per additional
employable student ÂŁ 1 p.a.
60. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
Assistance in choosing the most relevant speakers: By Curriculum Relevance
61. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
Assistance in choosing the most relevant speakers: By Gender & Curriculum
66. |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 ÂŁ1
Million
These folks can help out in
schoolsâŠ
67. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
In this case, you can see that
the teacher has chosen to
view the businesses by
growth rate
Of the 354 businesses in
Cambridgeshire, there are 287
businesses growing by 5% or
more
There are 39 growing by
150% or more. The user has
chosen to view only those
businesses growing at >
150%
68. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
Women-led
F4S allows the viewer to view
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
ï (there are 42)
69. |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)
By clicking on any of the icons, this will
take the user to information about the
company
70. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
This website allows the viewer to find
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)
If you click on any of these icons, it
reveals the linkedin profile and
accounts of the Business Leader of that
company so that the reader can
a) Write about them if they are a
journalist
b) Ask them for coffee if they are a
Mayor
c) Ask them to visit the classroom if
they are a teacher
d) Consider inviting them to tender for
a project if you are a large
corporate
e) Invite them on a trade mission if you
work for UKTI
f) Think about investing in them if you
are an investor
71. |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
72. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
If you clicked the
blue âhatâ, 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.
73. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
We know that there are
women-led businesses in
Cambridgeshire
13 women-led businesses
with > ÂŁ 1 Million in
revenue are growing their
revenues by 150% or
more (33% of the
business population)
58 women-led businesses
with more than ÂŁ 1 Million
in turnover that are
growing by 5% or more
(20% of the business
population)
I wonder why the
teacher didnât choose
any women?
74. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
National Benchmarking: Cambridge Leads!
75. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
Inspiration is local
Cambridge Leads Student-Employer Interactions per 100,000 of population
76. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
But is it enough?
Year 9 Students 8309
Year 10 Students 8481
Average Number of Students at an event 83
Average Number of Business Leaders per event 4
Necessary Number of Student-Employer Encounters 67,160
Number of events needed for Year 9 & 10 population 202
Business Leaders needed 809
Avg anticipated interactions per business leader 2.9
SHORTFALL 58,544
77. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
Together we can eradicate the Skills Gap
Corporate:
âą Dramatically drive down the cost of delivering the teacher workshops (to zero) and
âą Provide rewards to teachers for referring their fellow teachers to the training workshops
âą Provide rewards to teachers for booking multiple events using the platform.
âą Refer women from an engineering background to f4s as volunteers: We often run low on
âfemale inventoryâ, particularly in STEM subjects in Cambridge.
âą Offer work experience (contact Tricia Kelleher or Simon Armitage)
âą Sponsor workshops at Schools for year 9 and 10 teachers on how to use of the F4S service.
If you are a School Governor:
âą Help us sign up schools to the Assessment Research Exercise
âą Recommend a Teacher
If you are a Parent:
âą Recommend a Teacher
78. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
Together we can eradicate the Cambridge Skills Gap
79. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
The Report identified 6 main gaps as to why
companies cannot scale in the UK âŠ
THE SCALE-UP INITIATIVE 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 Export Gap: accessing customers in other markets /
home market
5. The Finance Gap: accessing the right combination of finance
6. The Infrastructure Gap: navigating infrastructure
80. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
SCALE-UP INSTITUTE
BRIEFING
UK ECONOMIC GROWTH
Sherry Coutu CBE
#scaleup
http://www.scaleupreport.com