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ERC State of Small Business
Britain Conference
2019
@ERC_UK
Welcome
Professor Nola Hewitt-Dundas,
Head of School of Management, Queens
University Belfast and ERC
@ERC_UK
SESSION 1:
UNDERSTANDING SECTORAL GROWTH
AND PRODUCTIVITY
#sallbizbritain2019
@ERC_UK
The State of Small Business Britain –
the Headlines
Professor Stephen Roper, Director, ERC
@ERC_UK
State of Small Business Britain 2019
Introductory Comments
Stephen Roper and Mark Hart
Small Business Confidence
Small business confidence has declined consistently since
the Brexit vote …
Entrepreneurship
… and this year we have seen a slight fall in levels
of entrepreneurial activity and other metrics…
Business birth and death rates
… the fall in entrepreneurial activity is reflected in the business
demographics data – falling births and rising death rates.
Established SMEs trading profitably
… and the challenging climate is evident among established
firms too with a sharp fall in the proportion trading profitably…
High growth firms
(OECD definition)
... and stagnant proportions of high growth firms using the
OECD definitions. Note significantly higher in services.
High growth in
manufacturing
… high growth is most
common in manufacturing in
Northern Ireland, Wales and
the capital.
High growth in
services: 2015-18
… and in services in the
North West, London
and the East.
Firms increasing productivity
(%, over three years)
… and the proportion of firms in both manufacturing and services
increasing productivity is also flat (and has been for much of the
post recession period).
Challenges facing SMEs
… market and regulatory factors dominate although
Brexit is creeping up the challenges ‘league table’.
Putting it all together in demographics…
… net job growth remains positive driven by jobs in expanding firms.
This is offset by a tick upwards in contractions (negative impact).
It’s not all doom and gloom!!
• The majority of companies continue to trade profitably and
create value for their customers, owners and employers
• But the statistics suggest a stagnant or weakening picture
and it is rather difficult to find many ‘good news’ statistics
• Jobs growth remains positive, however, and (perhaps
surprisingly) the recently published LSBS data does suggest
a sharp tick up in three-year growth ambition by around
9pp.
• As we have seen there are marked sectoral and spatial
contrasts across the UK however and we look forward to
discussing these in more detail during the rest of the day
Supporting SMEs through the
Industrial Strategy
Grace Carey, Head of Industrial Strategy Sector Deals, BEIS
@ERC_UK
UK Industrial Strategy
The UK’s approach to Industrial Strategy
The Government's modern Industrial Strategy sets out a long-term plan to boost productivity by
backing businesses to create good jobs and increase the earning power of people
throughout the UK with investment in skills, industries and infrastructure. It is a cross-government
programme to which all departments are contributing, and focuses on:
Strengthening the foundations of productivity – by encouraging innovation,
developing high quality jobs, supporting UK businesses and fostering growth
in all parts of the UK.
Building long-term strategic partnerships with businesses through Sector
Deals between government and industry.
Taking on Grand Challenges – the society-changing opportunities and
industries of the future where the UK can build on its strengths and lead the
world. This will be done through an innovative 'mission based' approach.
• Raise total R&D investment to 2.4 per cent of GDP by
2027
• Increase the rate of R&D tax credit to 12 per cent
• Biggest increase in R&D funding ever - committing an extra £7
billion by 2021/22
• Technical education system rivalling the best in the world
• Additional £406m in maths, digital and technical education
• £100 million committed for new National Retraining scheme
• £37bn National Productivity Investment Fund
• Support electric vehicles through £500m additional
investment
• Over £1bn public investment in digital infrastructure
• Launch and roll out Sector Deals
• Drive over £20bn investment in high potential businesses,
including a new £2.5bn Investment Fund
• £56m package to support business productivity
• Rapid development of Local Industrial Strategies
• 18 cities benefitting from £2.5bn for intracity transport
• Provide £42m to pilot a Teacher Development premium
The UK’s five Foundations in practice
Ideas
People
Infrastructure
Business
Environment
Places
Life Sciences
• Ensures new pioneering treatments
and medical technologies are
produced in the UK,
• £1.1bn investment from private and
charitable sectors
Automotive
• Ensures that the UK continues to
benefit from the transition to ultra-
low and zero-emission vehicles by
building an agile, innovative and
cost competitive supply chain
Artificial Intelligence
• Establishing the UK’s position as a
leader in developing AI technologies
• Actions to increase data availability
and developing high-level skills
Building long-term, strategic partnerships with
business
Creative
• £150m across the lifecycle of
creative businesses
• Invests in creative clusters,
technologies, and skills to unlock
growth for creative businesses
Partnerships between government and industry aiming to increase sector productivity:
Nuclear
• £200m to drive down cost of nuclear
energy
• 30% reduction in the cost of new
builds by 2030
• Establishing a framework for the
development of small modular
reactors
Construction
• 420 million of investment to
transform construction with new
digital and offsite manufacturing
technologies
• Cheaper energy bills for families
and businesses
10 Sector Deals have been negotiated so far, with further proposals under consideration. Agreed deals
include:
Building long-term, strategic partnerships with
business
Partnerships between government and industry aiming to increase sector productivity:
Life Sciences 2
• £1.4 bn support from Government to
strengthen UK’s leadership in
science & innovation
• Further £1bn of investment from
private companies building on
commitments in Sector Deal 1
Aerospace
• Up to £250 million co-investment
between government
and industry, for electrification
and automation of aircraft
• Aerospace industry committing
to a Women in Aviation and
Aerospace Charter.
Rail
• Includes commitment to establish a
platform for securely sharing rail industry
data
• Supports the sector to deliver significant
reductions in the cost of digital signalling
• Doubling export performance by 2025
through goods and services.
10 Sector Deals have been negotiated so far, with further proposals under consideration. Agreed
deals include:
OffShore Wind
• 30% of electricity to come
from offshore wind by 2030.
• Target of increasing exports
to £2.6 billion by 2030.
• Sector to invest up to £250m
in building a strong UK
supply chain.
The UK’s four Grand Challenges
Clean growth
We will maximise the advantages for UK industry from the
global shift to clean growth
Growing the AI & Data-driven Economy
We will put the UK at the forefront of the artificial
intelligence (AI) and data revolution
The Future of Mobility
We will become a world leader in the way people, goods
and services move
Ageing society
We will harness the power of innovation to help meet the
needs of an ageing society
Unlocking SME growth in the
creative sector
Dr Josh Siepel, Senior Lecturer,
Science Policy Research Unit University of Sussex &
Creative Industries Policy and Evidence Centre
@ERC_UK
Unlocking Growth in
the Creative Industries
Dr Josh Siepel
SPRU, University of Sussex
ERC State of Small Business
Britain Conference
27 June 2019
The
creative
industries
are…
● Heterogeneous
● Clustered
● Small
● Young
● Innovative
● Economically important
● Different
Growing
Creative
Industries
Firms
● Creative industries firms WANT to grow
–
○ 73% have growth aspirations, versus
approximately 50% of the population
● They also face barriers to growth:
○ Access to finance
○ Access to skills
○ Challenges of perceptions
How can
we unlock
growth in
the
creative
industries?
● Target policies to support creative industries
firms
● Recognise heterogeneity between sectors
● Build support ecosystems
The PEC is working in this area – watch this
space for new findings!
Thank you!
j.siepel@sussex.ac.uk
@JoshSiepel
www.pec.ac.uk
@CreativePEC
From Boom to Brexit:
11 years of running a creative SME
Kevin Palmer, Director, Kin
@ERC_UK
State of Small Business Britain conference 2019
kin-design kin_design
kin-design kin_design
kin-design kin_design
kin-design kin_design
kin-design kin_design
kin-design kin_design
Kinaesthetic learning
Production
Creative
Technology
State of Small Business Britain conference 2019
State of Small Business Britain conference 2019
State of Small Business Britain conference 2019
State of Small Business Britain conference 2019
State of Small Business Britain conference 2019
State of Small Business Britain conference 2019
State of Small Business Britain conference 2019
State of Small Business Britain conference 2019
State of Small Business Britain conference 2019
State of Small Business Britain conference 2019
State of Small Business Britain conference 2019
State of Small Business Britain conference 2019
State of Small Business Britain conference 2019
State of Small Business Britain conference 2019
State of Small Business Britain conference 2019
State of Small Business Britain conference 2019
State of Small Business Britain conference 2019
State of Small Business Britain conference 2019
State of Small Business Britain conference 2019
State of Small Business Britain conference 2019
State of Small Business Britain conference 2019
State of Small Business Britain conference 2019
State of Small Business Britain conference 2019
State of Small Business Britain conference 2019
State of Small Business Britain conference 2019
State of Small Business Britain conference 2019
State of Small Business Britain conference 2019
State of Small Business Britain conference 2019
State of Small Business Britain conference 2019
State of Small Business Britain conference 2019
State of Small Business Britain conference 2019
State of Small Business Britain conference 2019
State of Small Business Britain conference 2019
State of Small Business Britain conference 2019
State of Small Business Britain conference 2019
State of Small Business Britain conference 2019
State of Small Business Britain conference 2019
State of Small Business Britain conference 2019
State of Small Business Britain conference 2019
State of Small Business Britain conference 2019
State of Small Business Britain conference 2019
State of Small Business Britain conference 2019
State of Small Business Britain conference 2019
State of Small Business Britain conference 2019
State of Small Business Britain conference 2019
State of Small Business Britain conference 2019
- The best creatives don’t make the best CEOs
- The best creatives don’t make the best CFOs
- Design and the business of design
- Continue to innovate, don’t stagnate
- Accept that some things are out of your control
- Crashes are painful
- Crashes are hopefully healthy
- National Maritime Museum – Re:Think – open now
- Royal Observatory Greenwich – The Moon – July
- Swarovski
- ???
State of Small Business Britain conference 2019
kin-design kin_design
Thank you
kin-design.com
Networking and
refreshment break
@ERC_UK
SESSION 2:
DRIVING SME SUCCESS IN THE
AUTOMOTIVE SECTOR
@ERC_UK
The future of SMEs in the
automotive sector
Professor David Bailey, Birmingham Business School
@ERC_UK
The future of (SMEs in) the
automotive sector
ERC State of Small Business Britain Conference
The Shard, London
27th June 2019
Professor David Bailey
Birmingham Business School
& UK in a Changing Europe
Senior Fellow
Automotive Sector:
Where are we now? Where Next?
Market trends
Brexit
New technologies & value chain…
Policy issues
UK Auto Market trends
• UK sales down 7% in 2018, and down 4.6% in May
2019 (so far 2019: -3.1%)
• 2019 market shares so far: diesels 28% (33%), petrol
66% (62%), AFVs 6% (5%)
• Remember that Diesels took a huge bashing in
2018: Diesels -30% Petrol +9%, AFVs +21%
• Little sign of diesel’s decline coming to an end: 26
straight months of diesel decline. 2019: -18.4%
• Big discounts & pre-reg cars back in a big way
• 2019 as a whole?
SMMT 2019 forecasts
• Cars registrations at 2.313m, down 2.3% on the 2018 level.
• Diesel car volume of 0.624m, down 17% on 2018 and reducing
market share to 27%.
• AFVs registrations to rise 25% and plug-ins up 43%, taking
market shares to 8% and 4%
Market downturn: why?
• UK market 2019 (so far) -3.1%: 2018 -7%: 2017 -
6%.
• Big shift away from diesels ongoing…
• Economy has slowed: 2% smaller than would
have bene otherwise, post Referendum.
• Supply side disruption with new testing regime
• SMMT had been too optimistic (f: 2.6% fall in
2017): it had expected “the market to continue
gradually recovering” in 2018.
UK car production
• Production -9% in 2018 (output for domestic
market -16%). 2019 1st Quarter: -16%
• April: -45%
• “considerable concern” – SMMT
• Production slowdowns, shut downs and job
cuts at Vauxhall, Ford, Nissan, JLR.
• Combination of: Diesel’s demise, ‘China
syndrome’ & Brexit uncertainty slowdown
• Honda and Ford closure announcements.
State of Small Business Britain conference 2019
Diesel’s decline UK
Photo:
Matthias Schmidt
State of Small Business Britain conference 2019
Diesel’s decline
• Diesel market share continues to fall across W Europe;
March 2019 32% (March 18: 36%, March 17: 45%)
• Europe: >3 years of falling diesel share (52% late 2015)
• ‘Starting to level off’? But further policy action likely.
• Key market: Germany - diesel share fell below 30%.
• May: diesel pick up – 33% share.
• Hamburg and Berlin have banned older diesels from
parts of cities. German scrappage scheme.
• Germany: share 20% by 2020, 15% by 2025?
• 2025 European market share could be as low as 15%
State of Small Business Britain conference 2019
Diesel’s decline - EU
Diesel’s decline
“bad publicity about diesels is freaking out the public”
• ‘Perfect storm’ post dieselgate: consumer concerns
over tighter regulation in cities*, new tax rates,
resale values, tighter ‘real world’ WLTP testing, costs
of new technology, plus environmental concerns…
• Auto industry has ‘collectively shot itself in the foot’:
still failing to get over a convincing message on which
diesels are clean.
• UK Govt stance v confused. Diesel tax, ban by 2040,
hybrids? BEIS Select Ctte: ban to be brought forward
to 2032.
Effects of declining diesels? 1
• BMW, Audi, Mercedes Benz, JLR, Volvo most
affected
• Risk for car banks & financing companies: write off
€millions on diesel residual values.
• Premium players - av.CO2 emissions will rise:
increase potential for EU fines for non-compliance
with 2020 emissions standards
• “With up to 1m annual sales and emissions up to
15-20 g/km above 2020 standards… luxury
[manufacturers] annual CO2 penalties could rise
towards €2 bn a year,” (Morgan Stanley)
• + need to spend heavily on technology to replace
diesels. Further collaboration likely.
Effects of declining diesels? 2
• Market pull outs: Nissan, Toyota, Suzuki,
Mitsubishi, Fiat Chrysler, Porsche, Volvo all
phasing out passenger vehicle diesel sales.
• Peugeot: “made a mistake with pushing diesels”
• Others to follow?
• BMW has committed strongly to diesel
• Some segments still diesel dominated
State of Small Business Britain conference 2019
Clean air zones
• CAZ Framework released in 2016; aim to reduce NOx levels
• Euro 6 diesel / Euro 4 Petrol is good enough for now
• Principles: ‘One of the aims of Clean Air Zones is to support
the transition to ULEVs (Ultra Low Emission Vehicles)’
• Local authorities to explore all non-charging methods before
justifying use of a charging zone.
• 5 English cities mandated to create a CAZ by 2020; Leeds,
Derby, Nottingham, Birmingham & Southampton.
• Further 15 zones required CAZ plan, & another 7 required to
develop a local action plan
• BUT Birmingham and Leeds delayed
Bans coming on ‘ICE-only’ vehicles
Hybrids?
• Petrol/diesel ban from 2040 announced in 2017
• ‘Road to Zero’
• Govt thought to be considering ban on hybrids
(<50m on battery) by 2040.
• Risks killing technology before it takes off?
Brexit
• Uncertainty: 80% decline in investment over last 3 years
• Slowed economy
• Trading arrangements + Rules of Origin
• Customs
• Skills
• Regulation
• Research networks and funding: imp for SMEs too
No deal?
• Short term production hit:
-175,000 units
• Longer term:
as much as -500,000 by end of 2020s.
• Plant closures
• 10,000s of job losses
State of Small Business Britain conference 2019
State of Small Business Britain conference 2019
New technologies
EV sales in EU up:
market share 2% 1st quarter of 2019
2020 ‘Year Zero’ for EVs?
• Tough EU fleet average CO2 emission targets
arrive in 2020
• ‘Super credits’ come in for plug-in vehicles
emitting under 50g/km of CO2
• PLUS emissions cut for auto of 35% by 2030
likely to add to EV take up: Morgan Stanley
now forecasting 30% EV market share by 2030
• UK out of sync in cutting EV subsidies. UK
market? UK won’t count for EU targets plus
subsidy cut…
Driverless cars are coming but full
autonomy is some time away…
State of Small Business Britain conference 2019
‘ICE to ACE’
Implications for the Value Chain 1
 ‘fleet-based on-demand personal mobility’ value chain,
comprising components which will share data across the
value chain, such as:
• Vehicle design and manufacturing (existing automaker,
outsourced automotive manufacturer, supplier or fleet
operator, operating more on an open innovation model).
• Operating Platform (existing automaker, tier 1 supplier or
new entrant like Waymo, Renovo or Drive.ai)
• User Experience Platform provider (controlling the
passenger’s mobility experience, including in-cabin
experience, including hardware, software and data.
Implications for the Value Chain 2
• Data services provider: content - entertainment, traffic,
mapping or weather, consumed by ACE platforms or
passengers in ACE vehicles.
• Fleet creation: fleet operators could specify, design and
buy/lease from a specific vehicle manufacturer or lease
vehicles from a ‘fleet creation company’, as in the airline
industry. Fleet creation involves financing and insurance.
• Fleet operator: firms operating and managing the fleet of
ACE vehicles offering on-demand mobility services - extend
to integrating on-demand with public transport and to
‘Global Distribution System’ firms (as in the airline industry)
offering reservations to on-demand mobility services?
• Fleet service and maintenance provider: servicing,
maintaining and supporting fleets – specialists may provide
this service.
Policy: helpful but modest so far…
• Innovate UK funding and APC support has been
key
• Chancellor announced funding for new
technologies such as driverless cars and electric
vehicle batteries in the last Budget.
• But sums on offer (£270 million +) for a range of
disruptive technologies including robotics,
biotech and driverless cars, seem pretty small
beer compared to other countries.
• The Obama government set out a ten-year,
$4bn programme in the United States to invest
in driverless cars alone.
Some policy implications
• Brexit
• Policy on diesels
• Industrial strategy for EVs; technology, skills,
supply chain AND consumer take up – taxes,
infrastructure etc
• Govt’s industrial strategy and sector deal IS a
start but doesn’t go nearly far enough eg on
supply chains.
• Long term commitment and certainty re take up
of LCVs.
• Autonomous cars: need for broader planning and
debate.
• EU standards – membership was a good thing:
how will this be handled?
Thanks for listening.
Comments, Questions welcome.
@dgbailey
d.g.bailey@bham.ac.uk
The ‘Mittelstand mindset’:
How firms in the automotive sector in
the UK and Germany are responding to
digitisation
Professor Stephen Roper, Director, ERC
@ERC_UK
The Mittelstand Mindset for a digital age
Stephen Roper and Jane Bourke
Setting the scene
• Mittelstand companies - independent often family-owned and run SMEs -
are widely admired for their innovation, operational excellence and high
productivity
• But, by repute the Mittelstand Mindset also means firms prefer internal
financing and independent innovation which may limit their ability to
adapt to digitisation
• In this project we are considering ‘whether and to what extent the ongoing
digitisation of our economy and society will undermine the typical
Mittelstand mindset’.
• Our research focuses on Mittelstand companies in the automotive
manufacturing sector in the UK and Germany
• This project is on-going so this is a bit of an ‘in-flight’ briefing based on the
complete UK survey (86 firms) and partial German survey (39 firms)
Seven traits that define the
‘Mittelstand Mindset’
• A niche or ‘super niche’ focus on achieving global market leadership
• Globalization strategy often accompanies these niche strategies
• Customer collaboration is seen as a key priority in product development.
• A preference for self-financing – related to the desire for independence
• A long-run mindset consistent with a strategy of incremental
improvement.
• Superior employee relations stem from Mittelstand firms’ desire to
provide long-term employment and training opportunities.
• Community embeddedness –a commitment to local development.
De Massis, A.; D. Audretsch; L. Uhlaner; and N. Kammerlander. 2018. Innovation with Limited Resources: Management Lessons
from the German Mittelstand. Journal of Product Innovation Management 35:125-146.
Introducing the firms
UK
N=86
Germany
N=39
Employment 24.9 38.7
Turnover (£m pa) 3.6 4.9
Sales per employee (mean) 140.1 140.0
Export share of sales (%) 15.2 20.0
Business age 31.9 56.6
Female leadership (%) 24.0 10.5
Employment growth (10 plus, mean %pa) 9.6 7.7
Turnover growth (10 plus, mean %pa) 6.0 6.6
… German firms are larger, older and have fewer female leaders. Productivity is
almost identical
Business objectives
… German firms prioritise environmental benefits, UK firms prioritise growth
Export profiles
… export profiles are rather similar. UK firms are more likely to use E-
commerce
Working with customers
… German firms are significantly more likely to hold regular review
meetings with customers.
Investment decision timelines
… investment decisions involve longer timelines in the UK
Digital adoption
… digital management tools are more common in the UK. German firms
lead on AI and machine learning..
Motives for digitisation
… German firms prioritise organistional efficiency. UK firms’ motives are
linked to innovation in products or markets
Digital connectivity
… German firms are more likely to share networked data to other firms
Barriers to digitisation
… barriers differ. Key in Germany broadband speed, security concerns
dominate in the UK
Summary points
Similarities
• Similarities are evident in terms of a
range of market facing and operational
capabilities.
• A niche or ‘super niche’ focus and
Globalization strategy – UK firms
actually export to more countries
• Very similar funding profiles – German
firms more bank dependent
• A long-run mindset - UK firms have
longer time horizons
• Superior employee relations – firms in
both areas prioritise employee
relationships
Differences
• Differences are most evident
in terms of customer
collaboration, community links
and inter-firm connectivity.
• Community embeddedness –
62 per cent of German firms
were engaged in community
projects 24 per cent in the UK
• Customer collaboration – 85
per cent of German firms hold
regular review meetings with
customers, 46 per cent UK.
Final remarks
• As Pahnke and Welter (2019) comment the Mittelstand is
entrepreneurship that ‘builds on a sense of responsibility and
solidarity’.
• Our interim results suggest that despite some striking similarities
the connectedness and embeddedness which this implies seems
less evident across UK firms.
• Next steps in the project are final German interviews and a series
of case studies in each country
Panel discussion:
How can we make innovation happen in
SMEs?
 Archie McPherson, Chief Executive, Warwick Manufacturing Group,
 Mark Norris Head of Industrials, BEIS
 Dolores Sanders, Strategic Director, Total Control Pro Limited)
 Chair: Lee Hopley, Deputy Director, ERC
@ERC_UK
Lunch and networking
@ERC_UK
SESSION 3:
STRENGTHENING SECTORS
AT THE LOCAL LEVEL
@ERC_UK
Business speaker: Richer, safer, fairer.
Innovation in London's
financial services ecosystem
Ben Brabyn, CEO Level39
@ERC_UK
THE HEART OF INNOVATION IN
CANARY WHARF
@LEVEL39CW / @BENBRABYN
BEN BRABYN, HEAD, LEVEL39
State of Small Business Britain conference 2019
State of Small Business Britain conference 2019
State of Small Business Britain conference 2019
State of Small Business Britain conference 2019
State of Small Business Britain conference 2019
@LEVEL39
Cw
@BENBRA
BYN
LEVEL39.C
O
The role of Growth Hubs
in strengthening and cultivating
sectors locally
Roya Croudace, Director, Enterprise M3 Growth Hub
@ERC_UK
ERC State of Small Business Britain Conference 2019
The role of Growth Hubs in
Strengthening sectors
Thursday 27th June 2019
Roya Croudace
EM3 Growth Hub Director
155
• Setting the scene: EM3 Growth Hub
• What’s so special?
• Games sector in Guildford
• Cultivating a community
What is the Enterprise M3 Growth Hub?
• Consortium delivery
• High growth intensive support and universal service
• Small Team of 6 full time staff
• Operate “Associate Model” with 15 Associates
Our Services
Impact assessment & bespoke Growth Plans
a. 2 days 1:1 Consultancy, Mentoring or Coaching
b. Signposting to receive Local Support from
- Partners
- Clients
- Intermediaries/Suppliers
- Specialist Support Network
What is different about the Growth Hub?
Our service is:
• FULLY FUNDED
• Personal
• Tailored/Lean
• Focused on Growth
What our Services are?
Professional
Services
Health &
Pharmaceuticals
ICT & Digital
Media
Aerospace &
Defence
Priority Sectors
Niche Sectors
5G Telecoms
Animal Health
Photonics
Advanced Materials
& Nano Technology
Satellite
Technologies Advanced aerospace
& automotive
manufacturing
Cyber Security
Computer games &
entertainment
technologies
The 6 things all Companies need to grow?
The 6 things all Companies need to grow?
1. Firm Business Foundations
The 6 things all Companies need to grow?
1. Firm Business Foundations
2. Access to Finance
The 6 things all Companies need to grow?
1. Firm Business Foundations
2. Access to Finance
3. Strategy
The 6 things all Companies need to grow?
1. Firm Business Foundations
2. Access to Finance
3. Strategy (Business, Financial, Sales & Marketing, IP & Exit)
4. People
The 6 things all Companies need to grow?
1. Firm Business Foundations
2. Access to Finance
3. Strategy (Business, Financial, Sales & Marketing, IP & Exit)
4. People
5. Product, Services & Processes
The 6 things all Companies need to grow?
1. Firm Business Foundations
2. Access to Finance
3. Strategy (Business, Financial, Sales & Marketing, IP & Exit)
4. People
5. Product, Services & Processes
6. A Profit Engine
The House Model
Profit Engine
1. Marketing
2. Lead Generation
3. Prospecting
4. Sales
5. Operations
6. Account Management
7. Lost Sales Analysis.
The Enterprise M3 Growth Hub can identify &
address ALL these!
Silicon Drinkabout Guildford
Silicon Drinkabout is a regular after-work/school drinks
meetup for passionate tech/startup folks that happens the
first Thursday of the month (officially started in April 2017).
Silicon Drinkabout is a place to meet like-minded people,
have some fun and relax after another busy week. The
organising team consists of Guildford-based experts who're
happy to connect participants to other interesting
personalities of the group, whether on personal or
professional matters. A hooray to serendipity & beers! Leave
your business cards at home and come meet like-minds the
nicest way possible.
Growth
Guildford Business Growth is a free-of-charge dedicated business advice service available to all businesses in the
borough, no matter how small or large, whether existing or start up.
The service is delivered by the Enterprise M3 Growth Hub and Umi on behalf of Guildford Borough Council and includes
web chat, telephone advice with business advisers, face-to-face one hour clinics with a business specialist and
workshops dedicated to helping your business grow.
Areas of support will be bespoke to your challenges and opportunities across the start up and scaling up business
journey, including finance, export, business planning, sales and marketing.
Our Partners
So what’s so special about Growth Hubs?
1. Local knowledge, connected, collaborating
2. Deep dive with local businesses
3. Aligned to BEIS and LEP priority sectors
4. Neutrality
5. Centre of the innovation ecosystem
6. Stewardship
173
UK games industry - 2017
174
175
1987 - Guildford’s first videogame studio
176
Enabling Entrepreneurship
170 Past & present individual members
40 Desk capacity
55 Companies grown and developed there
Notable Rocketdesk graduates:
Jumpship, Mojiworks, No More Marking, Overdrive
Digital, Focal Point VR
2.5 years of history
EM3 Growth Hub and the Games Sector
1. Business support, investor ready,
2. Connecting and collaboration
3. Weekly growth champion at Rocketdesk
4. Focused meet ups, Unity and workshops
5. Inward investment showcase
6. Cross sector fertilisation
7. Skills
178
Guildford.Games Festival
179
Guildford.Games Website / Branding
• Full branding project for
Guildford’s games industry to
utilise (TM pending)
• Website highlighting
Guildford’s studios, history,
activity and supporting
ecosystem
• Enabling Guildford to become
an easy-to-share example of
creative prestige in the UK
• Inspiring confidence for inward
investment
• Supporting the success of new
SME’s in the region
180
2018 UK Games Market growth
Any Questions?
Enterprise M3
Growth Hub
Roya.Croudace@enterprisem3growthhub.co.uk
Panel discussion:
Identifying and growing local sectoral
strengths
 Roya Croudace, Director, Enterprise M3 Growth Hub
 Mark Basnett, Managing Director, Liverpool City Region LEP
 Angela Joyce, Chief Executive, Warwickshire College Group
 Rebecca McDonald, Analyst, Centre for Cities
 Chair: Professor Mark Hart, Deputy Director, ERC
@ERC_UK
Closing remarks:
Stronger sectors across the UK:
How can we best support SMEs?
Professor Stephen Roper, Director, ERC
@ERC_UK
ERC over the next year…
Core projects
• What drives local differences in financial status
and investment?
• How does IP influence firms’ ability to innovate
and derive value?
• Who are the UK’s leading productivity
businesses? How are they influencing others?
• How do local productivity disparities emerge?
And, why?
• BEIS/Innovate UK/BBB/IPO/ESRC
Commissioned projects
• What does ‘productivity’ mean in
micro-businesses? (ESRC)
• How does well-being influence
productivity in SMEs? (Midlands
Engine)
• How long is a piece of string? Or, the
time between innovation support and
firm benefits? (Canadian Treasury)
• How can we build better business
resilience among SMEs? (JP Morgan
Foundation)
@ERC_UK
Find out more
VISIT THE WEBSITE: www.enterpriseresarch.ac.uk
@ERC_UK
EnterpriseResearchCentre(UK)
EMAIL: centremanager@enterpriseresearch.ac.uk

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State of Small Business Britain conference 2019

  • 1. ERC State of Small Business Britain Conference 2019 @ERC_UK
  • 2. Welcome Professor Nola Hewitt-Dundas, Head of School of Management, Queens University Belfast and ERC @ERC_UK
  • 3. SESSION 1: UNDERSTANDING SECTORAL GROWTH AND PRODUCTIVITY #sallbizbritain2019 @ERC_UK
  • 4. The State of Small Business Britain – the Headlines Professor Stephen Roper, Director, ERC @ERC_UK
  • 5. State of Small Business Britain 2019 Introductory Comments Stephen Roper and Mark Hart
  • 6. Small Business Confidence Small business confidence has declined consistently since the Brexit vote …
  • 7. Entrepreneurship … and this year we have seen a slight fall in levels of entrepreneurial activity and other metrics…
  • 8. Business birth and death rates … the fall in entrepreneurial activity is reflected in the business demographics data – falling births and rising death rates.
  • 9. Established SMEs trading profitably … and the challenging climate is evident among established firms too with a sharp fall in the proportion trading profitably…
  • 10. High growth firms (OECD definition) ... and stagnant proportions of high growth firms using the OECD definitions. Note significantly higher in services.
  • 11. High growth in manufacturing … high growth is most common in manufacturing in Northern Ireland, Wales and the capital.
  • 12. High growth in services: 2015-18 … and in services in the North West, London and the East.
  • 13. Firms increasing productivity (%, over three years) … and the proportion of firms in both manufacturing and services increasing productivity is also flat (and has been for much of the post recession period).
  • 14. Challenges facing SMEs … market and regulatory factors dominate although Brexit is creeping up the challenges ‘league table’.
  • 15. Putting it all together in demographics… … net job growth remains positive driven by jobs in expanding firms. This is offset by a tick upwards in contractions (negative impact).
  • 16. It’s not all doom and gloom!! • The majority of companies continue to trade profitably and create value for their customers, owners and employers • But the statistics suggest a stagnant or weakening picture and it is rather difficult to find many ‘good news’ statistics • Jobs growth remains positive, however, and (perhaps surprisingly) the recently published LSBS data does suggest a sharp tick up in three-year growth ambition by around 9pp. • As we have seen there are marked sectoral and spatial contrasts across the UK however and we look forward to discussing these in more detail during the rest of the day
  • 17. Supporting SMEs through the Industrial Strategy Grace Carey, Head of Industrial Strategy Sector Deals, BEIS @ERC_UK
  • 19. The UK’s approach to Industrial Strategy The Government's modern Industrial Strategy sets out a long-term plan to boost productivity by backing businesses to create good jobs and increase the earning power of people throughout the UK with investment in skills, industries and infrastructure. It is a cross-government programme to which all departments are contributing, and focuses on: Strengthening the foundations of productivity – by encouraging innovation, developing high quality jobs, supporting UK businesses and fostering growth in all parts of the UK. Building long-term strategic partnerships with businesses through Sector Deals between government and industry. Taking on Grand Challenges – the society-changing opportunities and industries of the future where the UK can build on its strengths and lead the world. This will be done through an innovative 'mission based' approach.
  • 20. • Raise total R&D investment to 2.4 per cent of GDP by 2027 • Increase the rate of R&D tax credit to 12 per cent • Biggest increase in R&D funding ever - committing an extra £7 billion by 2021/22 • Technical education system rivalling the best in the world • Additional £406m in maths, digital and technical education • £100 million committed for new National Retraining scheme • £37bn National Productivity Investment Fund • Support electric vehicles through £500m additional investment • Over £1bn public investment in digital infrastructure • Launch and roll out Sector Deals • Drive over £20bn investment in high potential businesses, including a new £2.5bn Investment Fund • £56m package to support business productivity • Rapid development of Local Industrial Strategies • 18 cities benefitting from £2.5bn for intracity transport • Provide £42m to pilot a Teacher Development premium The UK’s five Foundations in practice Ideas People Infrastructure Business Environment Places
  • 21. Life Sciences • Ensures new pioneering treatments and medical technologies are produced in the UK, • £1.1bn investment from private and charitable sectors Automotive • Ensures that the UK continues to benefit from the transition to ultra- low and zero-emission vehicles by building an agile, innovative and cost competitive supply chain Artificial Intelligence • Establishing the UK’s position as a leader in developing AI technologies • Actions to increase data availability and developing high-level skills Building long-term, strategic partnerships with business Creative • £150m across the lifecycle of creative businesses • Invests in creative clusters, technologies, and skills to unlock growth for creative businesses Partnerships between government and industry aiming to increase sector productivity: Nuclear • £200m to drive down cost of nuclear energy • 30% reduction in the cost of new builds by 2030 • Establishing a framework for the development of small modular reactors Construction • 420 million of investment to transform construction with new digital and offsite manufacturing technologies • Cheaper energy bills for families and businesses 10 Sector Deals have been negotiated so far, with further proposals under consideration. Agreed deals include:
  • 22. Building long-term, strategic partnerships with business Partnerships between government and industry aiming to increase sector productivity: Life Sciences 2 • £1.4 bn support from Government to strengthen UK’s leadership in science & innovation • Further £1bn of investment from private companies building on commitments in Sector Deal 1 Aerospace • Up to £250 million co-investment between government and industry, for electrification and automation of aircraft • Aerospace industry committing to a Women in Aviation and Aerospace Charter. Rail • Includes commitment to establish a platform for securely sharing rail industry data • Supports the sector to deliver significant reductions in the cost of digital signalling • Doubling export performance by 2025 through goods and services. 10 Sector Deals have been negotiated so far, with further proposals under consideration. Agreed deals include: OffShore Wind • 30% of electricity to come from offshore wind by 2030. • Target of increasing exports to £2.6 billion by 2030. • Sector to invest up to £250m in building a strong UK supply chain.
  • 23. The UK’s four Grand Challenges Clean growth We will maximise the advantages for UK industry from the global shift to clean growth Growing the AI & Data-driven Economy We will put the UK at the forefront of the artificial intelligence (AI) and data revolution The Future of Mobility We will become a world leader in the way people, goods and services move Ageing society We will harness the power of innovation to help meet the needs of an ageing society
  • 24. Unlocking SME growth in the creative sector Dr Josh Siepel, Senior Lecturer, Science Policy Research Unit University of Sussex & Creative Industries Policy and Evidence Centre @ERC_UK
  • 25. Unlocking Growth in the Creative Industries Dr Josh Siepel SPRU, University of Sussex ERC State of Small Business Britain Conference 27 June 2019
  • 26. The creative industries are… ● Heterogeneous ● Clustered ● Small ● Young ● Innovative ● Economically important ● Different
  • 27. Growing Creative Industries Firms ● Creative industries firms WANT to grow – ○ 73% have growth aspirations, versus approximately 50% of the population ● They also face barriers to growth: ○ Access to finance ○ Access to skills ○ Challenges of perceptions
  • 28. How can we unlock growth in the creative industries? ● Target policies to support creative industries firms ● Recognise heterogeneity between sectors ● Build support ecosystems The PEC is working in this area – watch this space for new findings!
  • 30. From Boom to Brexit: 11 years of running a creative SME Kevin Palmer, Director, Kin @ERC_UK
  • 86. - The best creatives don’t make the best CEOs - The best creatives don’t make the best CFOs - Design and the business of design - Continue to innovate, don’t stagnate - Accept that some things are out of your control - Crashes are painful - Crashes are hopefully healthy
  • 87. - National Maritime Museum – Re:Think – open now - Royal Observatory Greenwich – The Moon – July - Swarovski - ???
  • 91. SESSION 2: DRIVING SME SUCCESS IN THE AUTOMOTIVE SECTOR @ERC_UK
  • 92. The future of SMEs in the automotive sector Professor David Bailey, Birmingham Business School @ERC_UK
  • 93. The future of (SMEs in) the automotive sector ERC State of Small Business Britain Conference The Shard, London 27th June 2019 Professor David Bailey Birmingham Business School & UK in a Changing Europe Senior Fellow
  • 94. Automotive Sector: Where are we now? Where Next? Market trends Brexit New technologies & value chain… Policy issues
  • 95. UK Auto Market trends • UK sales down 7% in 2018, and down 4.6% in May 2019 (so far 2019: -3.1%) • 2019 market shares so far: diesels 28% (33%), petrol 66% (62%), AFVs 6% (5%) • Remember that Diesels took a huge bashing in 2018: Diesels -30% Petrol +9%, AFVs +21% • Little sign of diesel’s decline coming to an end: 26 straight months of diesel decline. 2019: -18.4% • Big discounts & pre-reg cars back in a big way • 2019 as a whole?
  • 96. SMMT 2019 forecasts • Cars registrations at 2.313m, down 2.3% on the 2018 level. • Diesel car volume of 0.624m, down 17% on 2018 and reducing market share to 27%. • AFVs registrations to rise 25% and plug-ins up 43%, taking market shares to 8% and 4%
  • 97. Market downturn: why? • UK market 2019 (so far) -3.1%: 2018 -7%: 2017 - 6%. • Big shift away from diesels ongoing… • Economy has slowed: 2% smaller than would have bene otherwise, post Referendum. • Supply side disruption with new testing regime • SMMT had been too optimistic (f: 2.6% fall in 2017): it had expected “the market to continue gradually recovering” in 2018.
  • 98. UK car production • Production -9% in 2018 (output for domestic market -16%). 2019 1st Quarter: -16% • April: -45% • “considerable concern” – SMMT • Production slowdowns, shut downs and job cuts at Vauxhall, Ford, Nissan, JLR. • Combination of: Diesel’s demise, ‘China syndrome’ & Brexit uncertainty slowdown • Honda and Ford closure announcements.
  • 103. Diesel’s decline • Diesel market share continues to fall across W Europe; March 2019 32% (March 18: 36%, March 17: 45%) • Europe: >3 years of falling diesel share (52% late 2015) • ‘Starting to level off’? But further policy action likely. • Key market: Germany - diesel share fell below 30%. • May: diesel pick up – 33% share. • Hamburg and Berlin have banned older diesels from parts of cities. German scrappage scheme. • Germany: share 20% by 2020, 15% by 2025? • 2025 European market share could be as low as 15%
  • 106. Diesel’s decline “bad publicity about diesels is freaking out the public” • ‘Perfect storm’ post dieselgate: consumer concerns over tighter regulation in cities*, new tax rates, resale values, tighter ‘real world’ WLTP testing, costs of new technology, plus environmental concerns… • Auto industry has ‘collectively shot itself in the foot’: still failing to get over a convincing message on which diesels are clean. • UK Govt stance v confused. Diesel tax, ban by 2040, hybrids? BEIS Select Ctte: ban to be brought forward to 2032.
  • 107. Effects of declining diesels? 1 • BMW, Audi, Mercedes Benz, JLR, Volvo most affected • Risk for car banks & financing companies: write off €millions on diesel residual values. • Premium players - av.CO2 emissions will rise: increase potential for EU fines for non-compliance with 2020 emissions standards • “With up to 1m annual sales and emissions up to 15-20 g/km above 2020 standards… luxury [manufacturers] annual CO2 penalties could rise towards €2 bn a year,” (Morgan Stanley) • + need to spend heavily on technology to replace diesels. Further collaboration likely.
  • 108. Effects of declining diesels? 2 • Market pull outs: Nissan, Toyota, Suzuki, Mitsubishi, Fiat Chrysler, Porsche, Volvo all phasing out passenger vehicle diesel sales. • Peugeot: “made a mistake with pushing diesels” • Others to follow? • BMW has committed strongly to diesel • Some segments still diesel dominated
  • 110. Clean air zones • CAZ Framework released in 2016; aim to reduce NOx levels • Euro 6 diesel / Euro 4 Petrol is good enough for now • Principles: ‘One of the aims of Clean Air Zones is to support the transition to ULEVs (Ultra Low Emission Vehicles)’ • Local authorities to explore all non-charging methods before justifying use of a charging zone. • 5 English cities mandated to create a CAZ by 2020; Leeds, Derby, Nottingham, Birmingham & Southampton. • Further 15 zones required CAZ plan, & another 7 required to develop a local action plan • BUT Birmingham and Leeds delayed
  • 111. Bans coming on ‘ICE-only’ vehicles
  • 112. Hybrids? • Petrol/diesel ban from 2040 announced in 2017 • ‘Road to Zero’ • Govt thought to be considering ban on hybrids (<50m on battery) by 2040. • Risks killing technology before it takes off?
  • 113. Brexit • Uncertainty: 80% decline in investment over last 3 years • Slowed economy • Trading arrangements + Rules of Origin • Customs • Skills • Regulation • Research networks and funding: imp for SMEs too
  • 114. No deal? • Short term production hit: -175,000 units • Longer term: as much as -500,000 by end of 2020s. • Plant closures • 10,000s of job losses
  • 118. EV sales in EU up: market share 2% 1st quarter of 2019
  • 119. 2020 ‘Year Zero’ for EVs? • Tough EU fleet average CO2 emission targets arrive in 2020 • ‘Super credits’ come in for plug-in vehicles emitting under 50g/km of CO2 • PLUS emissions cut for auto of 35% by 2030 likely to add to EV take up: Morgan Stanley now forecasting 30% EV market share by 2030 • UK out of sync in cutting EV subsidies. UK market? UK won’t count for EU targets plus subsidy cut…
  • 120. Driverless cars are coming but full autonomy is some time away…
  • 123. Implications for the Value Chain 1  ‘fleet-based on-demand personal mobility’ value chain, comprising components which will share data across the value chain, such as: • Vehicle design and manufacturing (existing automaker, outsourced automotive manufacturer, supplier or fleet operator, operating more on an open innovation model). • Operating Platform (existing automaker, tier 1 supplier or new entrant like Waymo, Renovo or Drive.ai) • User Experience Platform provider (controlling the passenger’s mobility experience, including in-cabin experience, including hardware, software and data.
  • 124. Implications for the Value Chain 2 • Data services provider: content - entertainment, traffic, mapping or weather, consumed by ACE platforms or passengers in ACE vehicles. • Fleet creation: fleet operators could specify, design and buy/lease from a specific vehicle manufacturer or lease vehicles from a ‘fleet creation company’, as in the airline industry. Fleet creation involves financing and insurance. • Fleet operator: firms operating and managing the fleet of ACE vehicles offering on-demand mobility services - extend to integrating on-demand with public transport and to ‘Global Distribution System’ firms (as in the airline industry) offering reservations to on-demand mobility services? • Fleet service and maintenance provider: servicing, maintaining and supporting fleets – specialists may provide this service.
  • 125. Policy: helpful but modest so far… • Innovate UK funding and APC support has been key • Chancellor announced funding for new technologies such as driverless cars and electric vehicle batteries in the last Budget. • But sums on offer (£270 million +) for a range of disruptive technologies including robotics, biotech and driverless cars, seem pretty small beer compared to other countries. • The Obama government set out a ten-year, $4bn programme in the United States to invest in driverless cars alone.
  • 126. Some policy implications • Brexit • Policy on diesels • Industrial strategy for EVs; technology, skills, supply chain AND consumer take up – taxes, infrastructure etc • Govt’s industrial strategy and sector deal IS a start but doesn’t go nearly far enough eg on supply chains. • Long term commitment and certainty re take up of LCVs. • Autonomous cars: need for broader planning and debate. • EU standards – membership was a good thing: how will this be handled?
  • 127. Thanks for listening. Comments, Questions welcome. @dgbailey d.g.bailey@bham.ac.uk
  • 128. The ‘Mittelstand mindset’: How firms in the automotive sector in the UK and Germany are responding to digitisation Professor Stephen Roper, Director, ERC @ERC_UK
  • 129. The Mittelstand Mindset for a digital age Stephen Roper and Jane Bourke
  • 130. Setting the scene • Mittelstand companies - independent often family-owned and run SMEs - are widely admired for their innovation, operational excellence and high productivity • But, by repute the Mittelstand Mindset also means firms prefer internal financing and independent innovation which may limit their ability to adapt to digitisation • In this project we are considering ‘whether and to what extent the ongoing digitisation of our economy and society will undermine the typical Mittelstand mindset’. • Our research focuses on Mittelstand companies in the automotive manufacturing sector in the UK and Germany • This project is on-going so this is a bit of an ‘in-flight’ briefing based on the complete UK survey (86 firms) and partial German survey (39 firms)
  • 131. Seven traits that define the ‘Mittelstand Mindset’ • A niche or ‘super niche’ focus on achieving global market leadership • Globalization strategy often accompanies these niche strategies • Customer collaboration is seen as a key priority in product development. • A preference for self-financing – related to the desire for independence • A long-run mindset consistent with a strategy of incremental improvement. • Superior employee relations stem from Mittelstand firms’ desire to provide long-term employment and training opportunities. • Community embeddedness –a commitment to local development. De Massis, A.; D. Audretsch; L. Uhlaner; and N. Kammerlander. 2018. Innovation with Limited Resources: Management Lessons from the German Mittelstand. Journal of Product Innovation Management 35:125-146.
  • 132. Introducing the firms UK N=86 Germany N=39 Employment 24.9 38.7 Turnover (£m pa) 3.6 4.9 Sales per employee (mean) 140.1 140.0 Export share of sales (%) 15.2 20.0 Business age 31.9 56.6 Female leadership (%) 24.0 10.5 Employment growth (10 plus, mean %pa) 9.6 7.7 Turnover growth (10 plus, mean %pa) 6.0 6.6 … German firms are larger, older and have fewer female leaders. Productivity is almost identical
  • 133. Business objectives … German firms prioritise environmental benefits, UK firms prioritise growth
  • 134. Export profiles … export profiles are rather similar. UK firms are more likely to use E- commerce
  • 135. Working with customers … German firms are significantly more likely to hold regular review meetings with customers.
  • 136. Investment decision timelines … investment decisions involve longer timelines in the UK
  • 137. Digital adoption … digital management tools are more common in the UK. German firms lead on AI and machine learning..
  • 138. Motives for digitisation … German firms prioritise organistional efficiency. UK firms’ motives are linked to innovation in products or markets
  • 139. Digital connectivity … German firms are more likely to share networked data to other firms
  • 140. Barriers to digitisation … barriers differ. Key in Germany broadband speed, security concerns dominate in the UK
  • 141. Summary points Similarities • Similarities are evident in terms of a range of market facing and operational capabilities. • A niche or ‘super niche’ focus and Globalization strategy – UK firms actually export to more countries • Very similar funding profiles – German firms more bank dependent • A long-run mindset - UK firms have longer time horizons • Superior employee relations – firms in both areas prioritise employee relationships Differences • Differences are most evident in terms of customer collaboration, community links and inter-firm connectivity. • Community embeddedness – 62 per cent of German firms were engaged in community projects 24 per cent in the UK • Customer collaboration – 85 per cent of German firms hold regular review meetings with customers, 46 per cent UK.
  • 142. Final remarks • As Pahnke and Welter (2019) comment the Mittelstand is entrepreneurship that ‘builds on a sense of responsibility and solidarity’. • Our interim results suggest that despite some striking similarities the connectedness and embeddedness which this implies seems less evident across UK firms. • Next steps in the project are final German interviews and a series of case studies in each country
  • 143. Panel discussion: How can we make innovation happen in SMEs?  Archie McPherson, Chief Executive, Warwick Manufacturing Group,  Mark Norris Head of Industrials, BEIS  Dolores Sanders, Strategic Director, Total Control Pro Limited)  Chair: Lee Hopley, Deputy Director, ERC @ERC_UK
  • 145. SESSION 3: STRENGTHENING SECTORS AT THE LOCAL LEVEL @ERC_UK
  • 146. Business speaker: Richer, safer, fairer. Innovation in London's financial services ecosystem Ben Brabyn, CEO Level39 @ERC_UK
  • 147. THE HEART OF INNOVATION IN CANARY WHARF @LEVEL39CW / @BENBRABYN BEN BRABYN, HEAD, LEVEL39
  • 154. The role of Growth Hubs in strengthening and cultivating sectors locally Roya Croudace, Director, Enterprise M3 Growth Hub @ERC_UK
  • 155. ERC State of Small Business Britain Conference 2019 The role of Growth Hubs in Strengthening sectors Thursday 27th June 2019 Roya Croudace EM3 Growth Hub Director 155
  • 156. • Setting the scene: EM3 Growth Hub • What’s so special? • Games sector in Guildford • Cultivating a community
  • 157. What is the Enterprise M3 Growth Hub? • Consortium delivery • High growth intensive support and universal service • Small Team of 6 full time staff • Operate “Associate Model” with 15 Associates
  • 158. Our Services Impact assessment & bespoke Growth Plans a. 2 days 1:1 Consultancy, Mentoring or Coaching b. Signposting to receive Local Support from - Partners - Clients - Intermediaries/Suppliers - Specialist Support Network
  • 159. What is different about the Growth Hub? Our service is: • FULLY FUNDED • Personal • Tailored/Lean • Focused on Growth What our Services are?
  • 160. Professional Services Health & Pharmaceuticals ICT & Digital Media Aerospace & Defence Priority Sectors Niche Sectors 5G Telecoms Animal Health Photonics Advanced Materials & Nano Technology Satellite Technologies Advanced aerospace & automotive manufacturing Cyber Security Computer games & entertainment technologies
  • 161. The 6 things all Companies need to grow?
  • 162. The 6 things all Companies need to grow? 1. Firm Business Foundations
  • 163. The 6 things all Companies need to grow? 1. Firm Business Foundations 2. Access to Finance
  • 164. The 6 things all Companies need to grow? 1. Firm Business Foundations 2. Access to Finance 3. Strategy
  • 165. The 6 things all Companies need to grow? 1. Firm Business Foundations 2. Access to Finance 3. Strategy (Business, Financial, Sales & Marketing, IP & Exit) 4. People
  • 166. The 6 things all Companies need to grow? 1. Firm Business Foundations 2. Access to Finance 3. Strategy (Business, Financial, Sales & Marketing, IP & Exit) 4. People 5. Product, Services & Processes
  • 167. The 6 things all Companies need to grow? 1. Firm Business Foundations 2. Access to Finance 3. Strategy (Business, Financial, Sales & Marketing, IP & Exit) 4. People 5. Product, Services & Processes 6. A Profit Engine
  • 168. The House Model Profit Engine 1. Marketing 2. Lead Generation 3. Prospecting 4. Sales 5. Operations 6. Account Management 7. Lost Sales Analysis. The Enterprise M3 Growth Hub can identify & address ALL these!
  • 169. Silicon Drinkabout Guildford Silicon Drinkabout is a regular after-work/school drinks meetup for passionate tech/startup folks that happens the first Thursday of the month (officially started in April 2017). Silicon Drinkabout is a place to meet like-minded people, have some fun and relax after another busy week. The organising team consists of Guildford-based experts who're happy to connect participants to other interesting personalities of the group, whether on personal or professional matters. A hooray to serendipity & beers! Leave your business cards at home and come meet like-minds the nicest way possible.
  • 170. Growth Guildford Business Growth is a free-of-charge dedicated business advice service available to all businesses in the borough, no matter how small or large, whether existing or start up. The service is delivered by the Enterprise M3 Growth Hub and Umi on behalf of Guildford Borough Council and includes web chat, telephone advice with business advisers, face-to-face one hour clinics with a business specialist and workshops dedicated to helping your business grow. Areas of support will be bespoke to your challenges and opportunities across the start up and scaling up business journey, including finance, export, business planning, sales and marketing.
  • 172. So what’s so special about Growth Hubs? 1. Local knowledge, connected, collaborating 2. Deep dive with local businesses 3. Aligned to BEIS and LEP priority sectors 4. Neutrality 5. Centre of the innovation ecosystem 6. Stewardship
  • 174. 174
  • 175. 175 1987 - Guildford’s first videogame studio
  • 176. 176 Enabling Entrepreneurship 170 Past & present individual members 40 Desk capacity 55 Companies grown and developed there Notable Rocketdesk graduates: Jumpship, Mojiworks, No More Marking, Overdrive Digital, Focal Point VR 2.5 years of history
  • 177. EM3 Growth Hub and the Games Sector 1. Business support, investor ready, 2. Connecting and collaboration 3. Weekly growth champion at Rocketdesk 4. Focused meet ups, Unity and workshops 5. Inward investment showcase 6. Cross sector fertilisation 7. Skills
  • 179. 179 Guildford.Games Website / Branding • Full branding project for Guildford’s games industry to utilise (TM pending) • Website highlighting Guildford’s studios, history, activity and supporting ecosystem • Enabling Guildford to become an easy-to-share example of creative prestige in the UK • Inspiring confidence for inward investment • Supporting the success of new SME’s in the region
  • 180. 180 2018 UK Games Market growth
  • 183. Panel discussion: Identifying and growing local sectoral strengths  Roya Croudace, Director, Enterprise M3 Growth Hub  Mark Basnett, Managing Director, Liverpool City Region LEP  Angela Joyce, Chief Executive, Warwickshire College Group  Rebecca McDonald, Analyst, Centre for Cities  Chair: Professor Mark Hart, Deputy Director, ERC @ERC_UK
  • 184. Closing remarks: Stronger sectors across the UK: How can we best support SMEs? Professor Stephen Roper, Director, ERC @ERC_UK
  • 185. ERC over the next year… Core projects • What drives local differences in financial status and investment? • How does IP influence firms’ ability to innovate and derive value? • Who are the UK’s leading productivity businesses? How are they influencing others? • How do local productivity disparities emerge? And, why? • BEIS/Innovate UK/BBB/IPO/ESRC Commissioned projects • What does ‘productivity’ mean in micro-businesses? (ESRC) • How does well-being influence productivity in SMEs? (Midlands Engine) • How long is a piece of string? Or, the time between innovation support and firm benefits? (Canadian Treasury) • How can we build better business resilience among SMEs? (JP Morgan Foundation)
  • 186. @ERC_UK Find out more VISIT THE WEBSITE: www.enterpriseresarch.ac.uk @ERC_UK EnterpriseResearchCentre(UK) EMAIL: centremanager@enterpriseresearch.ac.uk