the challenge of change main pack

Thursday 31 October 2013

Today’s programme

09.00 Welcome from your host Michael Taylor

09.05 Opening Remarks, Rt Hon Vince Cable MP

09.10 The Challenges of Change, Sir Andrew Stunell MP

09.30 The Changing NW Economy, John Ashcroft

09.50 Insights on Growth, Rob Turner

10.05 Taking up the Challenge – A SME story, Darren Westlake

10.30 Coffee break

11.00 Workshops

12.00 Building and Maintaining Momentum, Steve Black

12.30 Panel Discussion Audience/Panel Q&A

13.00 Lunch & Lunch and networking

The Challenges of Change

Sir Andrew Stunell MP

The Changing NW Economy

John Ashcroft

Help to Buy ...

... Leading Recovery

UK GDP

The UK Economy in Black and White JKA

% change year on year

UK GDP Q3

quarter on previous year

The UK Economy in Black and White JKA

Growth up 0.8% 1.5% year on year

UK GDP Q1 Components of growth

The UK Economy in Black and White JKA

% change year on year

Manufacturin

g

Production

Constructi

on

Distrib

ution

Hotels & Le

isure

Transp

ort

Business

Services

and Finance

Total Service

s

GDPGDP ex oil

and gas

105 156

291 233 1000770

Government

and other

UK GDP (O) Index

Trend Rate 2.9%

Trend Rate 1.1%

The UK Economy in Black and White JKA

% change year on year

UK GDP

LTR 2.4%

Output Gap11.9%

Manufacturing

quarter on previous year

The UK Economy in Black and White JKA

Construction

quarter on previous year

The UK Economy in Black and White JKA

Rob Turner GrowthAccelerator – Growth Observatory

Insights on growth

Challenge of Change

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• Introduction to the Growth Observatory

• A growing evidence base

• Insights on growth– What does a growth SME look like?– What opportunities are growth SMEs exploiting?– What barriers are growth SMEs facing?

• Questions

Agenda

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Introduction to the Growth Observatory

32

Support the identification of

high growth SMEs

Analyse & understand what

works & why

Support the growth

'community'

Applied insight

Data analysis

Horizon scanning

Content generation

Sector insight

Local insight

Policy

SME relevant content

Support enterprise

growth

Add value to evidence base

Monitor effectiveness

Understand impact

Benchmarking

Utilise insight of others

Challenge of Change

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A growing evidence base

Financial & key business data for c9,500 SMEs

Indexed to wider secondary data sources

Insights of 100+ Growth Managers & 1,000+ Coaches

Surveys with clients, investors & stakeholders

Business diagnostics & assessments

In-depth conversations around barriers & opportunities

33

Insights on growth

Challenge of Change

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8%

17%

15%

31%

28%

North West

Less than 1 year

1 to 2 years

3 to 4 years

5 to 10 years

Over 10 years

What does a growth SME look like?

Age

35

7%

19%

13%

30%

32%

England

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13%

46%

37%

4%

North West

Start-up (less than 12 months)

Micro < 5 headcount and ≤ £2 million Turnover or ≤ £2 million balance sheet

Small < 49 headcount and ≤ £10 million Turnover or ≤ £10 mil-lion balance sheet

Medium < 250 headcount and ≤ £50 million Turnover or ≤ £43 million balance sheet

What does a growth SME look like?

Size

36

11%

48%

36%

5%

England

Challenge of Change

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What does a growth SME look like?

Sector

37

North West % England %

Manufacturing 10%Business services

10%

Business services

10% Manufacturing 9%

IT 7% IT 6%

Retail 4% Construction 4%

Engineering 4% Engineering 4%

Food and drink 4% Food and drink 4%

Construction 3% Retail 3%

Consulting 3% Software 3%

Recruitment 3% Healthcare 3%

Software 3% Recruitment 3%

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What does a growth SME look like?

Geography

38

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What opportunities are growth SMEs exploiting?

39

Expansion Diversification Service Sales & Marketing

Strategy Innovation Renew & Sustain-ability

Skills & People

0%

5%

10%

15%

20%

25%

30%

35%

24%

10%

13%

25%

12%

20%

4%

10%

26%

14% 14%

31%

18%

27%

5%

15%

North West England

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What barriers are growth SMEs facing?

40

0%

10%

20%

30%

40%

50%

60%

28%

23%

43%

50%

7%

10%

3%1%

4%

37%

27%

39%

49%

9% 9%

3% 2%4%

North West England

Any questions?

Rob TurnerT: 020 7728 2741M: 075 8418 5371E: rob.g.turner@uk.gt.com

Thank you

Taking up the Challenge A SME Story

Darren Westlake, Crowdcube

My challenges

Spiritec

1990 2000 2010ID Telecoms

Crowdcube

Raising finance

Raising finance

Raising financeTiming - pioneer

Pivoting

DiscoveredInternet

“Q1 2013 showed the lowest ever level of use of external finance by SME’s” – SME Finance Monitor, Aug ‘13

“Access to finance is a “major barrier” to growth for more than one in five small companies” – FT, Mar ’12

“Less than one in five SME’s have attempted to raise finance in the last year – with 40 per cent of applications rejected” – RealBusiness, Sept ‘13

The problem

What is Crowdcube?

The solution

Crowdcube is the world’s first and leading equity crowdfunding platform giving entrepreneurs a new way to raise investment; and..

…enabling everyday people to invest in exciting start-up and high-growth businesses in exchange for equity

Fully authorised and regulated by the Financial Conduct Authority

The solution

Success so far

£14.5 millionfunded so far…

£250,000largest single investment

>49,000members

70+£1.9 million

biggest deal

£2,800average investment

Successfully funded deals

£180,000average deal

Stage of Growth

By Category

Case studies

What are the benefits?

New way to raise

finance

UK wide investor reach

Easier to promote

Cost effective

Marketing effect

Crowd feedback

Financial return

‘Armchair Dragon’

Support friends and family

Participation

Lower/spread risk

Simple to invest

Future challenges

2013 2020

Crowdcube

Scaling

Internationalisation

Thanks! Questions?

@Crowdcubewww.crowdcube.com

Break

11.00- 11.50 Workshops

Financing Growth – Room 1

Innovation – Room 2

Business Development – Main Room

Building and Maintaining Momentum

Steve Black

Elite Level PerformanceBuilding and Maintaining Momentum

Growth AcceleratorOctober 2013

Teams…British LionsWelsh National RFUNewcastle Falcons RFCNewcastle United FCSunderland AFCFulham FCWelsh National Netball Team

Consultancies…Chicago BullsNew York JetsAustralian National RFUNew Zealand All BlacksThe Black Bull

Companies…SiemensNatWestAdidasPumaConvergysTechnogymDavid LloydAlexander ForbesBarclaysMercedes-BenzNikeProctor&GambleInland RevenueDepartment of PensionsFrank Haslam MilanL.E.A, Northern Rock, John Lewis, Ryder HKSIn Depth Studies…Sky SportsDesmond Media Group

“From testimonials and personal experience we have enough information to conclude that it is possible to design and live an extraordinary life”

Jim Rohn

Go For It!Start an Epidemicof Enthusiasm…

“Never start trying to be better than anyone else but never cease trying to be the best that you can be”

John Wooden

You’ll have developed good habits and bad habitsRECOGNISE THIS

You must have a genuine passion for what you do

Find out your strengths and weaknesses …and then play to your strengths!

Try to align yourself with a group of people who are positive, ambitious and not only want to succeed themselves but are genuinely happy for you to succeed

Right people…

sitting on the right bus…

in the right seats…

at the right time!

Fuel the desire to try to continually improve

Consider everything on its merits

Attach little weight to reputations or past-actions

“Experience is only useful so much as the past is like the future!”

Gary Hamel

Create the best possible working environment for all

In a well-managed team environment an individual gets the most reward from being the best team player they can be

TogetherEveryoneAchievesMore

Promote and expect collaboration

Company-wideNetwork-wideShare Good PracticeShare EnthusiasmShare Progress

All has a very infectious positive effect

Inspire each other to be the best that we can be

“To accomplish anything worthwhile, you must pay the price”

Vince Lombardi

Remember,The price of failure is nearly always more than the price of success

“If it’s to be it’s up to me” Lou Getz

If you think its impossible, it isn’t.

If you think you know everything, you don’t.

If you think you’re alone, you’re not.

Jim Rohn

“Producing the wrong thing to a high quality is pointless. Do things right and do the right things”

Peter Drucker

There are numerous paths to success but there is no right way to do the wrong thing

“Its not like we make fundamental changes to the way we do things all the time, but we do make tweaks” Allan Lyall, Amazon

“Determination is only the first step. It must be followed by hard work, a regime of mental exercise, and whatever it takes to bring out peak performance”

Napolean Hill ‘Think and Grow Rich’

“You can’t have worthwhile work unless everyone is working toward a wellunderstood and sharedgoal. But that’s not enough. It matters how you reach the goal. You must be guided by values. You have to be proud of both the goal and how you get there” Ken Blanchard & Sheldon Bowles “Gung-Ho!”

“The main thing is to keep the main thing the main thing!”

Stephen Covey – “First Things First”

“Keep it simple, but not simpler”

Albert Einstein

Set goals…

…that stretch you but are attainable…

…and when you meet those goals set new ones!

“You can’t introduce new practices without a solid foundation of

integrity”Cohen and Roussel

Succinctly,

“Everyone wants to go to heaven,but nobody wants to die” Joe Louis

Remember, To accomplish anything worthwhile, you must pay the price

Panel Discussion

Q&A

Thank you for attending