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.

4,500new 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 needsROI 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.


762women-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:

546are 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%

Household names:

Leeds

So

uth

East

En

terp

rise M

3

So

lent


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

