The independent 'Scale-Up' report published on Monday 17 November lays out the path to economic growth for leaders of cities and clusters so they can boost job and wealth creation in their communities. RBS has supported entrepreneur and investor Sherry Coutu CBE in contributing to the Report which spells out the strategy to secure economic growth by supporting businesses across Britain in their ambition to 'scale up' more quickly.
Britain has been very successful at creating new businesses, and now starts more companies per capita than the US. However, not enough of these start-ups are scaling-up into large companies, and Britain still has a lower proportion of large companies than the US and other nations. It is high-growth “Scale-Up” companies that contribute a disproportionate amount of jobs and growth to the economy.
The report argues that closing this “Scale-up gap” is the single most effective thing that leaders in government, business and academia can do to drive economic growth. It also provides 30 simple case studies for leaders of local communities to drive the growth and prosperity of their communities.
Independent analysis of the recommendations in the Scale-Up report demonstrates the significant economic value and competitive advantage that a focus on Scale-Ups can create for the UK:
• According to RBS, closing the Scale-Up gap could create 238,000 additional jobs and £38 billion in additional annual turnover in the UK within three years.
• According to Nesta, closing the Scale-Up gap could help boost Britain’s productivity, which would be worth up to £96 billion per annum to UK economic output.
• According to Deloitte, the implementation of the report’s recommendations could deliver a potential £225 billion in additional GVA and 150,000 net new jobs over the next 20 years.
The outputs of these three pieces of analysis are cumulative and taken together they show that, over the next 20 years, the UK could benefit from 1 million new jobs and an additional £1 trillion of economic growth.
Ian Cowie, Chairman of SME Banking commented:
"Sherry Coutu has delivered a powerful and unambiguous call to action to get behind Britain's entrepreneurs and wealth-creators. The clear message coming from this report is that a focus on fast-growing, scalable businesses will deliver tangible benefits to the economy including increased wealth, faster growth and more jobs. At RBS, we too want to help our business customers to achieve their full potential which is why we’ve been delighted to be involved in this important work."
Download the Scale-Up report here.