Art of scaling gracefully for the FD Centre on 25 May 2017

The FD Centre
Sherry Coutu CBE
#scaleup
#founders4school
25 May 2017

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 CBE#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

We are doing very well on Start-ups...
The Scale-Up Institute #scaleup Sherry Coutu CBE

But we are doing less well at growing them (!)

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 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

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

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

#scaleup @scaleup scaleupinstitute.org.uk

225,000,000,000
#scaleupTHE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE

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, Edinburgh
Information
Technology London
Staffing &
recruitment, London
Manufacturing,
Cambridge
Advertising Technology,
London

#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

The Evidence Gap
public and private sector organisations identify, target
and evaluate their support to scale-up companies
The Skills Gap
improve the ecosystem so scale-ups can find employees
with the skills they need
The Leadership Capacity Gap
building their leadership capability
The Finance Gap
accessing the right combination of finance
The Infrastructure Gap
navigating infrastructure
The Markets Gap
accessing customers in other markets/ home market
6 main gaps to focus on…

|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

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

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

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

http://www.scaleupreport.comHow do you help your clients become one of the next unicorns ?

Make sure you have chosen a
big enough problem

Embed yourself in the right Network

Recruit People who have done it before

Hire for tomorrow, not for today

Embrace Diversity

Nurture Company Values

Build systems that scale

Test product / market fit

Take the right kind of money
…….. at the right time

Let us start today:
We can Reverse The Scale-up Gap
2014 2020 2034
#scaleup

Art of scaling gracefully for the FD Centre on 25 May 2017

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