Expert View
WHY SCALEUPS MATTER by Irene Graham
chief executive, ScaleUp Institute
Scaleups are significant contributors to the UK economy, nationally and locally.
According to the ScaleUp Institute’s analysis of the latest ONS data, the UK’s 33,860 scaleups added £1 trillion to the UK economy - that’s 50 per cent of the total contribution made by all SMEs.
They employed 3.5 million, had an average turnover of £29.5m and were 54 per cent more productive than their sector peers. They are also highly innovative and internationally active.
So how does Lancashire fit into this national picture? Our analysis reveals 705 scaleups in the LEP region: 300 by growth in their number of employees; 560 by growth in turnover and 155 rapidly increasing both employment and turnover and adding £11.1bn to the local economy.
There are also approximately 400 more companies in Lancashire who are on their scaling journey, growing their turnover and/or employment by 15 to 20 per cent annually.
In addition, despite all the challenges of 2020, the number of ‘visible’ scaleups - those achieving £10.2m turnover and therefore filing full accounts at Companies
House - has jumped by 37 per cent to 7,474 visible scaleups.
And 147 of them are in Lancashire in sectors such as retail, professional and financial services, and specialist manufacturing. Nationally, the number of visible scaleups founded by a female has doubled from the previous year.
Scaleups expect and want to keep growing. Eight out of 10 expect some form of growth in 2021 and five out of 10 scaleups responding to the institute’s 2020 ScaleUp Survey expect to grow beyond 20 per cent in 2021 and one in four beyond 50 per cent.
So scaleups are the engines of the UK economy; they are critical to our future prosperity. They are in all sectors and in all parts of the country; they are creators of inclusive growth and regional equality.
We know that people and place still matter most to scaleup business leaders. They deeply value locally-rooted resources and services to foster their growth. Solutions built for scaleups at local level are vital for our future national prosperity.
To find out more visit:
scaleupinstitute.org.uk
“The right balance of passion, determination and planning can result in a successful formula for delivering rapid growth. There will inevitably be setbacks but having belief and keeping laser focused is important.”
He also advises businesses looking to embark on their scaleup journey to seek out all the help that is available, adding: “You are not a one-person team. You must be open to seeking support from others be that external funding or specialists in certain roles. You can’t do it all by yourself.
“Finally, do not compromise or lose your DNA. Your organisational culture is at the very heart of your success. Protect it as you scaleup.”
Leon Calverley is managing director of Burnley- based Door4. The company has grown from a freelance web designer in 2000 to an agency supporting national clients.
Looking at the scaleup journey it embarked on, he says: “A solid management team is crucial. You can’t scale if you’re too involved in the detail of your business.”
He adds: “Have a plan. Growth rarely just happens. It’s the result of preparedness, plus the effort to see through that plan. And perhaps a little opportunity and good fortune along the way.”
Amin Vepari also stresses that support is vital if businesses are to have a successful scaleup journey.
In Lancashire, the work is championed and
delivered by the Two Zero programme he heads. It was founded in 2019 by the county council to support companies aspiring to hit that 20 per cent year-on-year turnover target.
He says: “While it is common knowledge that startups require a lot of support and advice, a common misconception about scaleups is that due to their impressive level of success and increased exposure they know it all and don’t need any help.”
“There are many brilliant local and national resources for startups to find help, but once a company reaches that critical point of scaling, they might find their support options become more limited.”
Connecting with people who are experiencing the same challenges becomes “invaluable” he adds, advising businesses to create an empowering peer network.
He adds: “It not only makes business sense, but it also can be a much-needed source of emotional support and reassurance for high- achieving founders and executives during a period of massive change.”
He also believes scaleups will play a major part in Lancashire’s recovery plans post- Covid, explaining: “Central to this recovery and redefining Lancashire is how we support our scaleups to further grow
“In turn their contribution to the county’s economy can spur that much needed belief, positivity and pave the way for others to follow.”
LANCASHIREBUSINESSVIEW.CO.UK
Two Zero is a dynamic scale-up programme for ambitious Lancashire companies aspiring to grow 20% per year.
/
twozerolancs.com Take the challenge. Visit:
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SCALING UP
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