founders4schools / scale up summary presentation 9 march 2016

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

SCALE-UP BRIEFINGECONOMIC GROWTH & SKILLS

10 March 2016

Sherry Coutu CBE#scaleuphttp://www.scaleupreport.com

REPORT RECAPFocus on womenDive into Skills

THE SCALE-UP INITIATIVE Sherry Coutu CBE#scaleup

Definition

A ‘scale-up’ 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

Start-ups are not SCALE-UPS

Any size*

Any age

Any sector

Any region

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

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

The Scale-Up Institute #scaleup 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 £23,000

This research also found that only a small group of start-ups achievesignificant growth in revenues – just one per cent have sales of more than £1 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

“First mover advantage doesn’t go to the first company that launches, it goes to the first company that scales.”

Reid Hoffman, co-founder of Linkedin

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

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

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.”

Leszek Borysiewicz, Vice Chancellor of Cambridge University

“This report makes a compelling case for getting behind the UK’s high growth ‘scale-ups’ 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.”

John Cridland,Director-GeneralCBI

“A welcome contribution in the context of Greater Manchester’s recent devolution deal with Government and will support us as we look to deliver targeted business support to our local high growth firms.”

Mike Blackburn Chair of Greater Manchester LEP

“Competitive advantage doesn’t go to the nations

that focus on creating companies, it goes to

nations that focus on scaling companies.”

“Economic growth doesn’t happen in clusters that

focus on creating companies, it goes to those that

focus on scaling companies.”

The Report identified 6 main gaps as to why companies cannot scale in the UK …

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

|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

Methodology

http://www.scaleupreport.org/scaleup-report.pdf

Source: ONS

NET Impact of closing the scale up gap in 20 years

225,000,000,000

http://www2.deloitte.com/uk/en/pages/strategy/articles/the-scale-up-challenge.html

762women-led companies

£ 1M - £250 Million are expanding at a Median Growth Rate of

30%a year

Source: Companies House (via Duedil API)

Anya Hindmarch

Barclays

Bailey Fisher Executive Search

Cambridge Network

Careers & Enterprise Company

Creative Entrepreneurs

Decoded

Dot Everyone

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

WISE Campaign

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

New Entrepreneurs Foundation

Salesforce

Scale Up Institute

Second Home

Supporters

National Growth across sectors

Food & Drink,Edinburgh

Information Technology, London

Staffing & recruitment, London

Manufacturing, Cambridge

Advertising Technology,London

Contributing nearly

£ 2 billion moreto GDP in last year!

Cumulative Revenue £7,156,288,364 £8,864,226,404 £1,707,725,675

Average turnover up by more than

£ 2 Million in last year!

Average Revenue per women-led company £9,631,613 £11,930,318 £2,298,419

Median Revenue £2,171,467 £3,236,190 £881,593

453 are growing at

20%a year

of these:

281 are growing at

50%a year

Tech SectorAccounts for 67% of women-led

businesses

300grow at

20%per annum

188grow at 50%per annum

Management Consulting

Events Services

Internet

Sector diversity in women-led businesses is strong

PR & Comms

National GrowthFast-growing women-led companies present in all regions of the UK68% headquartered outside London

Scottish women-led companies are growing revenues at a median annual rate of 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.

Growing tech companies Run by Women - Turnover

Turnover Growth (GBP) vs Growth Rate (%)

Turnover in the last year vs Turnover Growth (GBP)

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

http://www.scaleupreport.com

#scaleup

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✗✗✗

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100 %Net New Jobs created in Europe in the past 5 years were from companies less than 5 years old….

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

THE PACE OF CHANGE IN OUR ECONOMIES IS HIGH AND INCREASING

THE SKILLS GAP IS SET TO GET LARGER….

#scaleup

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

THERE ARE A LARGE NUMBER OF ‘OPEN POSITIONS’

#scaleup

“1 Billion young people will start work in the next decade - only 40% in jobs that now exist”

The Economist, 23 Jan 2016

#scaleup

990,000 1,200,000

. Source: Adzuna

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

THERE ARE A LARGE NUMBER OF ‘OPEN POSITIONS’

#scaleup

1MNumber of new science, engineering and tech professionals required in the UK by 2020 (Royal Society 2014)

5.8MNumber of people forecast to be needed in the app economy by 2018 (OECD)

#scaleup

Teacher Productivity

Learner Attainment

KEY INFLUENCERS

#scaleup

Timing of the intervention is key

#scaleup

Inspiration is local9,200+ business leaders visit local schools across the country

Business Leaders Spread Most Deprived Areas

Most deprived areas Business Leader Spread by LEP

Most deprived areas Events Spread

Impact

54% of ‘students’ choose a STEM subject after a

teacher uses our service

Cost per additional employable student £ 1 p.a.

Assistance in choosing the most relevant speakers: By Curriculum Relevance

Assistance in choosing the most relevant speakers: By Gender & Curriculum

Linked to Assessment….

#scaleup

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

F4S tracks the number of student-employer interactions per LEP

Note that Cambridgeshire has 354 Business leaders with revenues of more than £1 Million

These folks can help out in schools…

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%

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

(there are 42)

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

This website allows the viewer to find businesses in any locale.

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

This website allows the viewer to find women-led businesses in any locale.

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

If you clicked the

blue ‘hat’, 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.

We know that there are women-led businesses in Cambridgeshire

13 women-led businesses with > £ 1 Million in revenue are growing their revenues by 150% or more (33% of the business population)

58 women-led businesses with more than £ 1 Million in turnover that are growing by 5% or more (20% of the business population)

I wonder why the teacher didn’t choose any women?

National Benchmarking: Cambridge Leads!

Inspiration is local

Cambridge Leads Student-Employer Interactions per 100,000 of population

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

Together we can eradicate the Skills Gap

Corporate:• Dramatically drive down the cost of delivering the teacher workshops (to zero) and

• Provide rewards to teachers for referring their fellow teachers to the training workshops • Provide rewards to teachers for booking multiple events using the platform. • Refer women from an engineering background to f4s as volunteers: We often run low on

‘female inventory’, particularly in STEM subjects in Cambridge.

• Offer work experience (contact Tricia Kelleher or Simon Armitage)

• Sponsor workshops at Schools for year 9 and 10 teachers on how to use of the F4S service.

If you are a School Governor:• Help us sign up schools to the Assessment Research Exercise• Recommend a Teacher If you are a Parent:• Recommend a Teacher

Together we can eradicate the Cambridge Skills Gap

The Report identified 6 main gaps as to why companies cannot scale in the UK …

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

SCALE-UP INSTITUTE BRIEFINGUK ECONOMIC GROWTH

Sherry Coutu CBE#scaleuphttp://www.scaleupreport.com

founders4schools / scale up summary presentation 9 march 2016

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