GrowthAccelerator hits 1000 business milestone
- Published on Tuesday, 13 November 2012 12:25
- Posted by Vicki Mitchem
SMEs benefitting from GrowthAccelerator say that entering new markets and developing new products and services are vital for high growth
To mark Global Entrepreneurship Week (12-16 November) GrowthAccelerator has revealed analysis that demonstrates key drivers for growth in high growth businesses. The analysis is based on surveys completed by the first 1,000 businesses to join the service. Today, nearly 1,500 high growth businesses in England are benefitting from the personalised support available from GrowthAccelerator and more than 4,200 potential clients have expressed an interest or been referred in to it.
The service provides eligible businesses with a full analysis of their growth potential, identifying core areas of potential within the business. Once a business' specific growth needs have been defined they are matched with one of GrowthAccelerator's 800 expert Growth Coaches, who will work in partnership with the business to develop and implement a plan that will help deliver maximum growth.
Entering new markets and developing new products and services will be the key drivers for growth according to analysis of GROWTHmapper surveys completed by the first 1,000 businesses. Feedback also showed that high growth businesses see time constraints, financing and skills shortages as main barriers to growth.
The analysis also revealed:
- Current GrowthAccelerator participants predict an average growth rate of 43% per annum - equivalent to tripling the size of their business over three years
- The average turnover per business currently signed up to GrowthAccelerator is around £2m representing a mix of exciting young companies and established medium sized businesses benefitting from the service
- Established businesses make up the majority of GrowthAccelerator clients - 25% of the businesses signed up have been trading between 5 and 10 years whilst 33% have been trading for longer than 10 years.
- High growth businesses believe that entering new markets and developing new products and services will drive future growth.
- Experience in marketing, sales, business strategy and finance are the most desirable characteristics for Growth Coaches
Launched in May this year the service is designed to boost business growth for England's top SMEs. Delivered by a consortium of private sector businesses on behalf of the Department for Business, Innovation and Skills (BIS), GrowthAccelerator is tasked with delivering growth (measured by GVA) of £2.2bn. This is to be achieved by delivering growth of 70% over three years for 26,000 businesses and the creation 55,000 high value jobs. -Business case study – Born Ready Games, Guildford
Set up in May 2012, Born Ready Games is a game development studio. The company began life as a spin off from a larger studio that was making cutbacks so the team of 23 are highly experienced, skilled developers used to working as a team.
The company has had Angel backing from its inception but given the fast paced, competitive nature of the gaming industry its leadership team wanted to ensure that they could secure further funding for their ambitious projects, the key one being a digital entertainment platform. If plans are successful, the company predicts that within five years they will achieve a turnover in excess of £60 million, reaching a global audience. Eventually they also plan to open offices in Germany and the US to support their core customer base.
Though the leadership team was clear on how it wanted to develop the product and reach the market they turned to GrowthAccelerator's access to finance team to help them prepare for pitching to venture capital investors. The support that they received from their coach included a session which simulated a real life pitch, offering the business a safe environment to practice and iron out any mistakes.
They also found the feedback from the panel of 'investors' very helpful as in reality investors very rarely offer any kind of feedback to businesses. Born Ready Games is currently raising funds with its core gaming audience on peer to peer funding circle Kickstarter. They are halfway through their campaign and have already raised over USD$120,00 – well over their USD$100,000 target. -Business case study – SmartStreets Ltd, London
Set up in 2007, Smartstreets Ltd is an environmental product design and development business, specialising in creating new, patented approaches to difficult problems such as cigarette litter, gum litter, dog fouling and random bike parking. The business has been working with GrowthAccelerator since July to review its strategy development and business planning. They are working with their coach to review and prioritise target market and segment need, drivers and issues, review and prioritise channels to market (both UK and international) and to guide the process of producing an integrated sales and marketing plan to achieve the business growth objectives.
Simon Littlewood, Director at GrowthAccelerator, said: "This is an ambitious service which is delivered by the private sector for the private sector. We are delighted that early participants are receiving genuine benefits. This milestone is very much the start of what believe is a transformative period for anyone growing a business in the UK.
"Out of what has been and remains to be a challenging economic environment we are now seeing a new breed of businesses emerging. Those who constantly look for new places to do business, in terms of export and also in terms of new product development and fresh, innovative marketing and sales strategies. Together with high value technology and investment in high value manufacturing capabilities these are the businesses that stand to make a real difference to the economic future of the UK – and the businesses for which GrowthAccelerator exists to support."