Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

The Millennial 2000. ERC State of Small Business Britain conference 2015. Mark Hart

1,049 views

Published on

The Millennial 2000 Insights into 16 years of Survival and Growth. Mark Hart presentation at the ERC State of Small Business Britain conference . June 16th 2015.

Published in: Business
  • Be the first to comment

  • Be the first to like this

The Millennial 2000. ERC State of Small Business Britain conference 2015. Mark Hart

  1. 1. The Millennial 2000 Insights into 16 years of Survival and Growth ERC State of Small Business Britain Conference Presentation 16th June 2015
  2. 2. Context • In 1998, 240,000 firms were born – most employed fewer than 5 people • In 2014 - ~26,000 of these firms still in business (11%) • 67% haven’t grown at all
  3. 3. Who are the Millennial 2000? – 1,230 firms had 1-4 employees in 1998 But created 40x number of jobs they had in year one – 1,131 firms had <£100k sales in 1998 But generated 80x amount of first year sales – 412 firms in both categories Created 77x number of jobs they started with AND generated 137x amount of first year sales
  4. 4. M2000 Contribution to the UK Economy in 2014 • Employ c.110,000 people and generate around £16bn sales • On average each M2000 firm now employs ~55 people and generates sales of ~£8.5m
  5. 5. Adding Jobs for 16 years
  6. 6. Generating Revenues for 16 Years
  7. 7. The M2000 Survey A survey of 500 of these firms to understand…. • How they grew 1998-2014 • Was it a story of ‘luck’ or………………? • Strategic behaviour – business model development; markets; innovation; knowledge sourcing; • Funding – bank, equity, alternative finance • External advice – private and public • Leadership, Management, Skills – evolution of the ownership/management team
  8. 8. What are the M2000 telling us? [Emerging Findings - 219 Firms] So far – • They are in ALL sectors of the economy and in all parts of the UK • Over half are family businesses – and many of the Founders still actively involved in the business • Predominantly independent businesses and most are B2B • 1 in 3 have a formal Board of Directors
  9. 9. Period of Most Substantial Growth
  10. 10. A story of Exporting and/or Innovation? • In 2015 – ~half sell internationally - and those that are have been exporting for more than 10 years • … a higher proportion than in the wider economy (20%) • 2 out of 3 had innovated but not in the last 3 years
  11. 11. Finance • A third had initial capital of <£10k – almost no PE or VC involvement • 1 in 4 actively searching for external finance since 2012 – primarily bank finance (average sought - £700k) • Only 1 in 10, of those seeking finance, did not obtain the finance they were seeking
  12. 12. Impact of the Great Recession • Recession adversely affected about a third • Many grew substantially during the Great Recession – how? – All about UK markets – much less internationally – Less about innovation – Not about M&A! – Most ran down reserves or managed costs
  13. 13. External Advice • Legal advisors, accountants and bank managers • Around 1 in 3 have made use of government business support – most of these still doing so • Thirst for knowledge: – Technology; professional information; intelligence about market competitors; skills
  14. 14. Now let’s hear from them directly! Chris Pick - Pickfisk Raj Iqbal – Choice Packaging Solutions

×