Scale up briefing to festival of marketing oct 6 2016

|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
SCALE-UP BRIEFING
Festival of Marketing (6 October 2016)
Chasing unicorns: Marketers on the hunt for a job at the next billion-dollar business
Sherry Coutu CBE
#scaleup
http://www.scaleupreport.com

Advice from a serial entrepreneur and former angel investor
THE SCALE-UP INSTITUTE #scaleup

THE SCALE-UP INSTITUTE Sherry Coutu CBE#scaleup

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

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

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

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 (!)

“Competitive advantage doesn’t go to the nations
that focus on creating companies, it goes to
nations that focus on scaling companies.”

In a global first, new analysis - based on open-government and LinkedIn data-sets - reveals
how companies led by women grow, perform and rank - identifying the fastest-growing and
most dynamic women-led businesses across the UK.
Scaleup businesses are the 'driving
force' of UK economy

225,000,000,000

Job Creation is linked to companies that are high growth (2015)
In the UK, HGSBs created the equivalent of approx.
4,500
new jobs every week
3 X as many new jobs as the FTSE 100
The Scale-Up Institute #scaleup Sherry Coutu CBE
Source: Octopus investments – hgsb study released Oct 20 2015

SCALE-UPS ARE NOT START-UPS
Scale-ups have different needs
ROI in Scale-ups has big pay-offs for Economic Growth
So we should focus some of our attention and policies on scale-ups

SCALE-UPS ARE THROUGHOUT THE COUNTRY
Scale-ups are found in each of the 39 LEP
areas in England and 6,659 (75 per cent) of
the total 8,923 scale-ups are located outside
of London.
On average a LEP will have approximately
228 scale-ups in their area.
These in turn can be grouped into the
Number of scale-ups companies that employ
between
• 10 and 49 employees,
• 50 and 250 employees,
• >250 employees
#scaleup

Growing tech companies Run by Women - Turnover

Turnover in the last year vs Turnover Growth (GBP)

|THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBETHE SCALE-UP INITIATIVE Sherry Coutu CBE#scaleup
Why are we obsessed with companies at
the beginning or the end of their journey?
Should marketers instead focus their
attention on scale-ups?

Turnover Growth (GBP) vs Growth Rate (%)

How to identify companies that are already gaining momentum but
need outside help to get to the next level of growth

● The UK has a lower share of large
businesses than the US.
● Large firms with more than 250
employees account for 0.5 per cent
of firms in the UK but 0.7 per cent
in the US.
● This lack of ‘scale up’ means the
economy as a whole loses on
productivity and growth.

762
women-led companies
£ 1M - £250 Million
are expanding at a Median Growth Rate of
30%
a year

927
October 2016:
women-led companies
£ 1M - £250 Million
are expanding at a Median Growth Rate of
28%
a year

453 are growing at
20%
a year
of these:

546
are growing at
20%
a year
In Oct 2016 I can reveal that

281 are growing at
50%
a year
and

336 are growing at
50%
a year
And in October 2016, we can reveal that

Contributing nearly
£ 2 billion more
to GDP in last year!
Cumulative
Revenue
£7,156,288,
364
£8,864,226,
404
£1,707,725,
675

Management Consulting
Events Services
Internet
Sector diversity in women-led businesses is strong
PR & Comms
88%
42%
33%
28%

National Growth across sectors
Food & Drink,
Edinburgh
Information
Technology,
London
Staffing &
recruitment,
London
Manufacturing
, Cambridge
Advertising
Technology,
London

National Growth
Fast-growing women-led companies
present in all regions of the UK
68% headquartered outside
London
Scottish women-led companies are
growing revenues at a median
annual rate of 30%

https://www.founders4schools.org.uk/women/

#scaleup
✔✔✔
✔✔✔
✗✗✗
✔✔✔
✔✔✔
✔✔✔

Is there potential for marketers
to influence
More growth within
fast-growing organisations?

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

I would be able to grow
my company faster if
applicants had the skills
needed to meet my
customer demand.
82%
OF 163 SCALE-UPS AGREE
79%
OF 442 CEOs AGREE

Examples of how marketers have taken crazy ideas and clunky
products and made them understandable to the mass market

Improving the life chances of students by
giving them access to business leaders in their community
Improving the life chances of students by
Accessing the skills of marketeers
;-)

Impact
Teachers report that 54% of
their students choose a
STEM subject a single f4S
role model event
Just 4 student-employer
encounters decreases the
likelihood of a child being
NEET

free to use
time savings
learner STEM attainment gains
Massive cost savings to the ‘system’

Work Experience Pilot:
#scaleup

Work Experience App: Discovery
#scaleup

Festival of Marketing (6 October 2016)
Chasing unicorns: Marketers on the hunt for a job at the next billion-dollar business
Sherry Coutu CBE
#scaleup

Scale up briefing to festival of marketing oct 6 2016

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Scale up briefing to festival of marketing oct 6 2016