strathclyde university scaleup lecture 19 april 2017

The ScaleUp Challenge

Sherry Coutu, Chair, ScaleUp Institutewww.scaleupinstitute.org.uk/19th April, Strathclyde Business School

“The Scaleup Challenge”

“The benefits of scale ups”

“The role universities can play”

“The role of place”

Audience Check

POLICY

FINANCE

CULTURE

SUPPORTS

HUMAN CAPITAL

MARKETS

ENTREPRENEURS

#scaleup

BACKGROUNDThe 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

 OECD DEFINITION of a SCALEUP BUSINESS:

A ‘scaleup’ 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.

#scaleup @scaleupinst scaleupinstitute.org.uk

“The Scaleup Challenge”

“The benefits of scale ups”

“The role universities can play”

“The role of place”

#scaleup @scaleupinst scaleupinstitute.org.uk

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

#scaleup @scaleupinst scaleupinstitute.org.uk

But we are doing less well at growing them

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

#scaleup @scaleupinst scaleupinstitute.org.uk

Very Few Start-ups Survive and GrowUK businesses that started in 1998 – 10 years

later and beyond

221,73183,165

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%

#scaleup @scaleupinst scaleupinstitute.org.uk

Turnover Growth (GBP) vs Growth Rate (%)

Turnover in the last year vs Turnover Growth (GBP)

“The Scaleup Challenge”

“The benefits of scale ups”

“The role universities can play”

“The role of place”

14

Scaleup businesses are the 'driving force' of UK economy

“Competitive advantage doesn’t go to the nations

that focus on creating companies, it goes to

nations that focus on scaling companies.”

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

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

225,000,000,000

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

WHY SCALEUPS MATTER

#scaleup @scaleupinst scaleupinstitute.org.uk

SCALEUPS ARE PRODUCTIVESCALEUPS ARE INNOVATIVE

SACLEUPS ARE INTERNATIONALSCALEUPS ARE UK WIDE

SCALEUPS ARE ACROSS ALL SECTORSSCALEUPS CREATE GREAT JOBS

NATIONAL GROWTH ACROSS SECTORS

Food & Drink, Edinburgh

Information Technology London

Staffing & recruitment, London

Manufacturing, Cambridge

Advertising Technology,London

#scaleup @scaleupinst scaleupinstitute.org.uk

#scaleup @scaleup scaleupinstitute.org.uk

Key factors for a successful ScaleUp ecosystem

#scaleup scaleupinstitute.org.uk22

SCALEUPS AT A NATIONAL AND LOCAL LEVEL

#scaleup @scaleupinst scaleupinstitute.org.uk

IN 2014 THE REPORT IDENTIFIED 6 MAIN GAPS TO FOCUS ON:

The Evidence Gap public and private sector organisations identify, target and evaluate their support to scale-up companiesThe 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 financeThe Infrastructure Gapnavigating infrastructure

The Markets Gap accessing customers in other markets/ home market

#scaleup @scaleupinst scaleupinstitute.org.uk

Key factors for a successful ScaleUp ecosystem

#scaleup scaleupinstitute.org.uk25

“The Scaleup Challenge”

“The benefits of scale ups”

“The role universities can play”

“The role of place”

26

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

THE SKILLS GAP IS SET TO GET LARGER….

#scaleup

OF 163 SCALE-UPS AGREE

Workfinder.com

We know how important closing the attainment gap is to our long-term economic prosperity, so it’s fantastic that apps like Workfinder give businesses a new and innovative way to connect with students all across the UK

Well done for coming up with such a pioneering idea”.

Paul Drechsler, CBI President

82%

“I would be able to grow my company faster if

applicants had the skills needed to meet my customer demand”

“Our members regularly tell us that they struggle to find young adults who are properly equipped for the workplace”

“today’s launch of Workfinder marks a huge step forward in tackling this issue. Not only does it provide young people with great opportunities, it does so in the digital space – the natural domain of those who will excel in the high-tech, high-skilled workplaces of the future.”

Mike CherryFederation of Small Businesses

82%

“I would be able to grow my company faster if

applicants had the skills needed to meet my customer demand”

“I would be able to grow my company faster if

applicants had the skills needed to meet my customer demand”

#scaleup @scaleupinst scaleupinstitute.org.uk

University Case Studies:

“The role universities can play”

“The role universities can play”

ScaleupIndustry Leaders

90% !

6 Internships per student

Scaleup businesses

“The role universities can play”

“The role universities can play”

“The role universities can play”

Workfinder.com

“The speakers told us stories about students of our age who had created

businesses and so I thought if they can do it,

I could too.

Maitri Panchal

Workfinder.com

“Our members regularly tell us that they struggle to find young adults who are properly equipped for the workplace”

“today’s launch of Workfinder marks a huge step forward in tackling this issue. Not only does it provide young people with great opportunities, it does so in the digital space – the natural domain of those who will excel in the high-tech, high-skilled workplaces of the future.”

Mike CherryFederation of Small Businesses

The role Strathclyde Business School could play?

● Continue Growth Advantage Programme

Workfinder.com

Workfinder

Get experience at Britain’s best companies in a few taps.

Continue Growth Advantage Programme

6 internships each?

120 Student Clubs?

Workfinder

STRATHCLYDE BUSINESS SCHOOL be a better scaleup citizen?

● Continue Growth Advantage Programme

● Open up research facilities to scaleups (Infrastructure)

● Convene scaleup ‘peer to peer’ roundtables

● Make it easier for your students to engage with the scaleup business population

● Appoint a ScaleUp Champion

#scaleup @scaleupinst scaleupinstitute.org.uk

“The Scaleup Challenge”

“The benefits of scale ups”

“The role universities can play”

“The role of place”

58

#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

#scaleup @scaleup scaleupinstitute.org.uk

SCOTLAND: North East Scotland is performing well against the rest of the UK but there is room for improvement in other parts of Scotland where the trend

is below average . ONS, 2015

#scaleup @scaleupinst scaleupinstitute.org.uk

SCALEUPS AT A LOCAL LEVEL : SCOTLAND

 THANK YOUGet in touch:

@scoutu