This document discusses the importance of scaleup businesses to economic growth and outlines gaps that need to be addressed. It defines scaleup businesses as those growing at 20% annually with over 10 employees. While the UK does well creating startups, few survive and grow to their full potential. Universities can play a key role by providing skills training, internships with scaleups, and leadership development programs. Addressing skills gaps, access to financing, and helping scaleups access new markets will help close the UK's "scaleup gap" compared to countries like the US.

1. The ScaleUp Challenge
University Industry Innovation Network
Sherry Coutu, Chair, ScaleUp Institute
www.scaleupinstitute.org.uk/
8 June 2017

2. “The Scaleup Challenge”
“The benefits of scale ups”
“The role universities can play”
“The role of place”

3. Audience Check
POLICY
FINANCE
CULTURE
SUPPORTS
HUMAN
CAPITAL
MARKETS
ENTREPRENEURS

4. #scaleup

5. 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

6. 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.
#scaleup @scaleupinst scaleupinstitute.org.uk

7. “The Scaleup Challenge”
“The benefits of scale ups”
“The role universities can play”
“The role of place”

8. #scaleup @scaleupinst scaleupinstitute.org.uk
We are doing very well on Start-ups...

9. #scaleup @scaleupinst scaleupinstitute.org.uk
But we are doing less well at growing them

10. 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%
#scaleup @scaleupinst scaleupinstitute.org.uk

11. 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
#scaleup @scaleupinst scaleupinstitute.org.uk

12. Turnover Growth (GBP) vs Growth Rate (%)

13. Turnover in the last year vs Turnover Growth (GBP)

14. “The Scaleup Challenge”
“The benefits of scale ups”
“The role universities can play”
“The role of place”
14

15. Scaleup businesses are the 'driving
force' of UK economy

16. “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

17. “Competitive advantage doesn’t go to the nations
that focus on creating companies, it goes to
nations that focus on scaling companies.”
So what is your university doing with scaleups?
#scaleupTHE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE

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

19. 225,000,000,000
#scaleupTHE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE

21. WHY SCALEUPS MATTER
#scaleup @scaleupinst scaleupinstitute.org.uk
SCALEUPS ARE PRODUCTIVE
SCALEUPS ARE INNOVATIVE
SACLEUPS ARE INTERNATIONAL
SCALEUPS ARE UK WIDE
SCALEUPS ARE ACROSS ALL SECTORS
SCALEUPS CREATE GREAT JOBS

22. NATIONAL GROWTH ACROSS SECTORS
Food & Drink, Edinburgh
Information
Technology London
Staffing &
recruitment, London
Manufacturing,
Cambridge
Advertising Technology,
London
#scaleup @scaleupinst scaleupinstitute.org.uk

24. AREAS OF SPECIAL
FOCUS
CREATIVE INDUSTRIES
STEM
LIFE SCIENCES
GLA

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

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

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

28. 225,000,000,000
#scaleupTHE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE

29. 225,000,000,000
#scaleupTHE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE

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

31. #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

32. #scaleup @scaleup scaleupinstitute.org.uk

33. Key factors for a successful
ScaleUp ecosystem
#scaleup scaleupinstitute.org.uk33

34. SCALEUPS AT A NATIONAL AND
LOCAL LEVEL
#scaleup @scaleupinst scaleupinstitute.org.uk

35. 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 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
#scaleup @scaleupinst scaleupinstitute.org.uk

36. Key factors for a successful
ScaleUp ecosystem
#scaleup scaleupinstitute.org.uk36

37. “The Scaleup Challenge”
“The benefits of scale ups”
“The role universities can play”
“The role of place”
37

38. |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

39. 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

40. 82%
“I would be able to grow my
company faster if applicants had
the skills needed to meet my
customer demand”

41. “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

42. 82%
“I would be able to grow my
company faster if applicants had
the skills needed to meet my
customer demand”

43. “I would be able to grow my
company faster if applicants had
the skills needed to meet my
customer demand”

44. #scaleup @scaleupinst
scaleupinstitute.org.uk
University Case Studies:

45. “The role universities can play”

46. “The role universities can play”

48. Scaleup
Industry
Leaders

49. 90% !

50. 6
Internships
per student
Scaleup
businesses

51. “The role universities can play”

54. “The role universities can play”

56. “The role universities can play”

59. 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

60. 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

61. The role Strathclyde Business School could play?

62. ● Do you have
a Growth
Advantage
Programme?

65. Make it easier
for your startups
and scaleups and
‘spawn-outs’ and
spinouts to
engage with
larget corporates
who you work
with

66. “What Works.” Careers and Enterprise Company. Dec 2016.
Provide
guidance to
staff so they
understand
which
interventions
work best

67. Make it
easier for
your
students to
engage with
the scaleup
business
population

68. Make it
easier for
your
students to
engage with
the scaleup
business
population

69. Workfinder.com
Workfinder
Get experience at
Britain’s best companies
in a few taps.

70. Can your university be a better scaleup citizen?
● Create or sign-post to a ‘good’ leadership development provider in your
local community
● Matchmaking your students and alumni with Corporates
● Open up research facilities to scaleups (Infrastructure)
● Convene scaleup ‘peer to peer’ roundtables
● Make it easier for your students to engage with the scaleup businesses
● Appoint a ScaleUp Champion
● Have a section on your website dedicated to scaleups
● Monitor your internships by ’type of company’
#scaleup @scaleupinst scaleupinstitute.org.uk

71. Leadership
Development
Programme for
Scaleups?
6 internships each?
120 Student Clubs?
Workfinder

72. |THE SCALE-UP REPORT ON UK ECONOMIC GROWTH Sherry Coutu CBE
Let us start today:
Together we can Reverse The Scale-up Gap that dampens innovation
2014 2020 2034
#scaleup

73. THANK YOU
Get in touch:
@scoutu