Art of scaling gracefully in newcastle (11 may 2017)
1. The Art of Scaling Gracefully in Newcastle…
Sherry Coutu CBE
#scaleup
#founders4school
@scoutu
11 May 2017
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8. ENTREPRENEURSHIP
2000
Floated second Start-up
1986
Came to the UK to attend the London
School of Economics
1987
Became a Computer
Programmer
1991
Studied Business at Harvard
1994
Joined my first
‘start-up’
1995
Founded second Start-up
Sherry Coutu CBE < 2000
1997
first ‘startup’ sold
#scaleup
10. We are doing very well on Start-ups...
The Scale-Up Institute #scaleup Sherry Coutu CBE
11. But we are doing less well at growing them (!)
The Scale-Up Institute #scaleup Sherry Coutu CBE
12. 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
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
THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE#scaleup
http://www.scaleupreport.com
14. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
Turnover Growth (GBP) vs Growth Rate (%)
15. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
NATIONAL GROWTH ACROSS SECTORS
Food & Drink, Edinburgh
Information
Technology London
Staffing &
recruitment, London
Manufacturing,
Cambridge
Advertising Technology,
London
18. 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%
The Scale-Up Institute #scaleup Sherry Coutu CBE
19. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
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
avg < £23,000
#scaleup
20. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
Research by the academic David Storey found that
Just one per cent have sales of more than £1 million six years after they star
1 % > £ 1m
#scaleup
21. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
http://www.scaleupreport.comHow do I help you become one of the next unicorns ?
22. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
6 main gaps to focus on…
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 Sales Gap: accessing customers in other markets / home market
5. The Finance Gap: accessing the right combination of finance
6. The Infrastructure Gap: navigating infrastructure
23. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBETHE SCALE-UP INITIATIVE Sherry Coutu CBE#scaleup
The Skills Gap:
improve the ecosystem so scale-ups can find employees with the skills they
need
24. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
6 main gaps to focus on…
THE SCALE-UP INITIATIVE Sherry Coutu CBE#scaleup
The Leadership Capacity gap: building leadership capability
25. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
6 main gaps to focus on…
THE SCALE-UP INITIATIVE Sherry Coutu CBE#scaleup
The Sales Gap: accessing customers in other markets / home market
26. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
6 main gaps to focus on…
THE SCALE-UP INITIATIVE Sherry Coutu CBE#scaleup
The Finance Gap: accessing the right combination of finance
27. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
6 main gaps to focus on…
THE SCALE-UP INITIATIVE Sherry Coutu CBE#scaleup
The Infrastructure Gap: navigating infrastructure
28. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBETHE SCALE-UP INITIATIVE Sherry Coutu CBE#scaleup
The Evidence Gap: public and private sector organisations
identify, target and evaluate their support to scale-up companies.
29. 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.
Founders4Schools
31. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBETHE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
Closing The Scale-Up Gap:
Local Government
• Celebrate scale-up growth events in your city with the media
• Invite scale-up leaders to share their experience with students
• Celebrate new customer wins and help create new ones
• Encourage local universities to offer courses to scale-up leaders
• Meet with a selection of scale-up leaders every month (3 hours)
• Persuade real-estate leaders to offer scale-up friendly terms
#scaleup
32. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBETHE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
Closing The Scale-Up Gap:
Media
Shine a light on our most successful scale-up leaders and their
companies rather than only start-ups.
Profile successful scale-up entrepreneurs at key mile-stones to inspire
others (especially the next generation)
Review and hold to account initiatives and policies in entrepreneurship:
• Are they about starting or growing businesses?
• Are they actually providing evidence to support their claims?
• What is the cost per job created?
• Are they collaborative?
#scaleup
33. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBETHE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
Closing The Scale-Up Gap:
Lawyers, Accountants, Bankers:
• Identify mentors with experience and find effective ways to
share their knowledge
• Publish the the amount you procure from scale-ups
• Offer infrastructure / co-working spaces:
#scaleup
34. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBETHE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
Closing The Scale-Up Gap:
Large Corporates
Short Term:
Publish the the amount you procure from scale-ups
Long-term:
Support existing initiatives that help teachers and schools
develop future business skills in our students
#scaleup
35. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
Choose a big enough problem
36. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
Embed yourself in the right Network
37. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
Recruit People who have done it before
38. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
Hire for tomorrow, not for today