F4 s scale up summary presentation (leeds) march 18 2016

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

SCALE-UP SKILLS BRIEFING

DRIVING ECONOMIC GROWTH

Sherry Coutu CBE#scaleuphttp://www.scaleupreport.com

ScaleupsSkills & LEPS

THE SCALE-UP INITIATIVE Sherry Coutu CBE#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

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 (!)

● 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.

THERE IS A SCALE-UP GAP

The Scale-Up Skills Briefing #scaleup Sherry Coutu CBE

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

www.scaleupreport.org

“Competitive advantage doesn’t go to the nations

that focus on creating companies, it goes to

nations that focus on scaling companies.”

NET Impact of closing the scale up gap in 20 years

225,000,000,000

“This report makes a compelling case for getting behind the UK’s high growth ‘scale-ups’ and I hope all political parties seriously consider its recommendations.

These firms are already having a transformational impact, we just need more of them to grow.

Helping them access the talent they need, develop their leadership and access new markets are the priorities.”

John Cridland,Director-GeneralCBI

These recommendations focus on steps that can enable and leverage local networks and provide them with actionable insights to mobilize collective action; the mind-set is one of using existing resources more effectively, not just providing more support.

Michael Porter, Harvard Business School

“Economic growth doesn’t happen in LEPS that

focus on startups or large companies, it goes to

those that focus on scaling companies.”

“This report is a welcome contribution in the context of Greater Manchester’s recent devolution deal with Government and will support us as we look to deliver targeted business support to our local high growth firms.”

Mike Blackburn Chair of Greater Manchester LEP

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

https://www.founders4schools.org.uk/local-authorities/#/

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

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

World leading universities such as Cambridge play a crucial role in creating business through the generation of innovation, entrepreneurship, and funding opportunities, but it is the talent and expertise of our students and academics that will help these businesses grow.”

Leszek Borysiewicz, Vice Chancellor of Cambridge University

Key Factors for a successful Scale-up ecosystemIN SUMMARY

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

THE SCALE-UP INITIAT 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 Customer Gap: accessing corporate customers in other markets / home market

5. The Finance Gap: accessing the right combination of finance

6. The Infrastructure Gap: navigating infrastructure

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

http://www.scaleupreport.com

#scaleup

✔✔✔

✗✗✗

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REPORT RECAPSkills & LEPS

KEY RECOMMENDATIONS

Recommendation 3

Ensure that students at schools, colleges and universities come into contact with the top 50 scale-up business-leaders within 20 miles of their establishment

Case Studies: Estonia, Founders4Schools, NACUE, Telefonica’s Think Big

#scaleup

I would be able to grow my company faster if university graduates had the skills needed to meet my customer demand.

82%OF 163 SCALE-UPS AGREE

79%OF 442 CEOs AGREE

990,000 1,200,000

. Source: Adzuna

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

THERE ARE A LARGE NUMBER OF ‘OPEN POSITIONS’

These open positions present a productivity problem because the businesses are turning away customer orders because they can’t get the staff….

#scaleup

1MNumber of new science, engineering and tech professionals required in the UK by 2020 (Royal Society 2014)

5.8MNumber of people forecast to be needed in the app economy by 2018 (OECD)

THE SKILLS GAP IS SET TO GET LARGER….

#scaleup

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

Source: Octopus investments – hgsb study released Oct 20 2015

100 %Net New Jobs created in Europe in the past 5 years were from companies less than 5 years old….

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

THE PACE OF CHANGE IN OUR ECONOMIES IS HIGH AND INCREASING

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

JOBS OF THE ‘OLD ECONOMY’ JUST DON’T EXIST ANYMORE’

#scaleup

“1 Billion young people will start work in the next decade - only 40% in jobs that now exist”

The Economist, 23 Jan 2016

#scaleup

KEY INFLUENCERS

#scaleup

Teacher Productivity

Learner Attainment

Figure 4. The value of Apps in helping learning (students) (Longfield iPad Research, 2012)

Figure 5. The value of Apps in helping teaching (staff) (Longfield iPad research, 2012)

Teacher ProductivityLearner Attainment

REPORT RECAPSkills• Case Studies Review of LEPS

free to use

productivity gains

Parental engagement

35 million users, teachers and students, in over 220.000 schools across the world to date.

Edmodo, a safe platform where teachers and students can collaborate, share content, and leverage educational apps to augment in-classroom learning

Edmodo is interesting because of the way it has molded social into a shape that suits education at the K-12 level: as a free service that's teacher-friendly and easy for school districts to adopt, typically after they find out their teachers are already using it.

Using Edmodo, teachers invite students into private groups that can be used for online classroom discussions, but in a format that keeps the teacher firmly in control.

35 million users, teachers and students

in over 220.000 schools across the world to date.

free to use

time savings

learner STEM attainment gains

Massive cost savings to the ‘system’

Assistance in choosing the most relevant speakers: By Curriculum Relevance

Assistance in choosing the most relevant speakers: By Gender & Curriculum

If you clicked the

blue ‘hat’, you go to the event page which shows that the teacher asked these leaders to visit during a day they spoke about college applications to 90 Year 11 Students at this school.

The teacher had chosen three leaders to illustrate careers in this instance.

Impact

54% of ‘students’ choose a STEM subject after a

teacher uses our service

Work Experience Pilot:

#scaleup

Timing of the intervention is key

#scaleup

Inspiration is localbusiness leaders visit local schools across the country

Business Leaders Spread Most Deprived Areas

Most deprived areas Events Spread

Most deprived areas Business Leader Spread by LEP

National Benchmarking: Cambridge Leads!

This service allows the viewer to find women-led businesses in any locale.

In this case, you can see that the viewer has chosen to view the women-led businesses growing by 20% or more (there are 42)

By clicking on any of the icons, this will take the user to information about the company

F4S tracks the number of student-employer interactions per LEP

Note that Cambridgeshire has 354 Business leaders with revenues of more than £1 Million

This website allows the viewer to find women-led businesses in any locale.

In this case, you can see that the viewer has chosen to view the women-led businesses growing by 20% or more (there are 42)

Clicking on the red icon, will take the user to information about the company

Clicking on the blue icon, will take the user to the school that invited the business leader into their classroom

Inspiration is local

Cambridge Leads Student-Employer Interactions per 100,000 of population

But is it enough?

Year 9 Students 8309

Year 10 Students 8481

Average Number of Students at an event 83

Average Number of Business Leaders per event 4

Necessary Number of Student-Employer Encounters 67,160

Number of events needed for Year 9 & 10 population 202

Business Leaders needed 809

Avg anticipated interactions per business leader 2.9

SHORTFALL 58,544

Together we can eradicate the Skills Gap

Corporate:

• Dramatically drive down the cost of delivering the teacher workshops (to zero) and

• Provide rewards to teachers for referring their fellow teachers to the training workshops • Provide rewards to teachers for booking multiple events using the platform. • Refer women from an engineering background to f4s as volunteers: We often run low on

‘female inventory’, particularly in STEM subjects in Cambridge.

• Offer work experience

• Provide workshops at Schools for year 9 and 10 teachers on how to use tools like F4S.

If you are a School Governor:• Help us sign up schools to the Assessment Research Exercise• Recommend a Teacher If you are a Parent:• Recommend a Teacher

Together we can eradicate the Cambridge Skills Gap

SCALE-UP BRIEFINGLEPS DRIVING ECONOMIC GROWTH

Sherry Coutu CBE#scaleuphttp://www.scaleupreport.com

F4 s scale up summary presentation (leeds) march 18 2016

Economy & Finance

Transcript of F4 s scale up summary presentation (leeds) march 18 2016

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