the business of science lecture: manchester 18 may 2017

The Business of Science

Sherry Coutu CBE Chair, ScaleUp Institute and Founders4Schools

www.scaleupinstitute.org.uk/

http://www.scaleupinstitute.org.uk/

“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

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

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.



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


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


http://www.scaleupreport.com

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%


Turnover Growth (GBP) vs Growth Rate (%)

Turnover in the last year vs Turnover Growth (GBP)





14

Scaleup businesses are the 'driving

force' of UK economy

Science 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

225,000,000,000


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

Key factors for a successful

ScaleUp ecosystem

#scaleup scaleupinstitute.org.uk22

SCALEUPS AT A NATIONAL AND

LOCAL LEVEL


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

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






25

|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

82%

“I would be

able to grow

my

company

faster if

applicants

had the

skills

needed to

THE SKILLS GAP IS SET TO GET LARGER….

#scaleup

“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 Cherry

Federation of Small Businesses

82%

“I would be

able to grow

my

company

faster if

applicants

had the

skills

needed to

“I would be

able to grow

my

company

faster if

applicants

had the

skills

needed to

#scaleup @scaleupinstscaleupinstitute.org.uk

University Case Studies:

ScaleupIndustry Leaders

6 Internships per student

Scaleup businesses

The role Strathclyde Business School could play?

● Continue

Growth

Advantage

Programme

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 Cherry

Federation of Small Businesses

www.workfinder.com

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

www.workfinder.com

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

www.workfinder.com

Workfinder.com

Workfinder

Get experience at

Britain’s best companies

in a few taps.

www.workfinder.com

➤ Discover: Browse and discover local fast

growing companies - spark your

imagination

➤ Filter: Refine searches by your favourite

subjects - find companies that excite you

➤ Apply: Apply for roles using template

cover letters - it’s quick and easy

➤ Contact: Apply for positions directly and

take an active approach

➤ Experience: Gain valuable experience

and get ahead of the crowd

Every secondary school and university

student should have up-to-date, user-

friendly labour market

intelligence/information (LMI) readily

accessible.

Every young person could have at least 100

hours experience of the world of work, in

some form, by the time they reach the age of

18


ManchesterCamden

Wolverhampton

South Cambridgeshire (511)

UNLEASHING THE

POWER OF THE BUSINESS

COMMUNITY INTO THE

CLASSROOMStudent Employer Encounters

OUR GOALS

➤ improve young people’s ability to make informed career decisions and improve their optimism about the future;

➤ help young people to increase their attainment and be more likely to enrol in post-secondary education;

➤ increase the employability of young people; and

➤ increase young people’s earnings after they complete their schooling

➤ By getting teachers to 4 student-employer encounters per annum

➤ By getting students 140 hours of work experience

Ramesh Raskar, MIT Media Lab

Successful Entrepreneurs travel to schools to speak with students

Lucinda Bruce Gardyne from Genius Foods

Inspired by her child’s allergy to

gluten and her passion for

chemistry, Lucinda set about

creating a loaf so her eight year

old son Robin, who had a wheat

allergy, could dip bread soldiers

in his boiled eggs at breakfast.

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

www.workfinder.com

DELIVERING MEANINGFUL

ENCOUNTERS





71

32 (72%) of the top 50

fastest growing

science-based

companies are

located out of London

These are growing by

an average of 92%

Key factors for a successful

ScaleUp ecosystem

#scaleup scaleupinstitute.org.uk85

School for

science

Scaleups

Programme?

6 internships each?

120 Student Clubs?

Workfinder

Can we grow our science-based startups faster?

● Support / create School for Scaleups (should be 10x)

● Run a campaign for science grads to volunteer in local schools (F4S)

● 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 (Adopt Workfinder)

● Appoint a ScaleUp Champion

● Make it easier for your Scaleups to get talent (Visa)

● Celebrate your Scaleup Business Leaders

● Celebrate your teachers and schools who get their 4 SEE/student

● Sponsor a school near you for Work-experience


THANK YOUGet in touch:

@scoutu