How do we fire up the start-ups? Webinar, February 2021
Key Points from our Webinar:
The West Midlands StartUp Engine has some faulty valves….
- Initial survival and scaling of start-ups a key concern – not interested in the volume of start-ups per se
- Very few firms that can be categorised as ‘high-growth’ or have shown evidence of scaling
- Growth ambition among early-stage entrepreneurs and micro-businesses is low
- Relatively lower levels of innovation
- These ‘weak’ business growth metrics show some correlation with low levels of productivity
What’s working for the region:
- Excellent incubators in the region/coupled with range of expertise across thew Higher Education sector – we have people interested in starting businesses
- Importance of facilities within HE to support innovation
- Strong community of businesses and access to talent is key
- UK referred to as ‘best place to start and grow an innovation led company’; able to benefit from R&D credits; access to Innovate grants; benefitted from ‘Patent Box’ (Government tax relief scheme which has reduced Corporation Tax rate on profits to 10%)
- Growth in number of international businesses looking to HQ in the region – credibility of being a UK based company
Where the challenges are and what needs to improve:
- Access to resources and support for people from poorer backgrounds; similar issue raised re access to capital (reach of an individual’s social networks)
- Dependency on support/grants – reluctance of entrepreneurs to invest in growing businesses
- General feeling that we don’t need more start-ups – unless this is the aim. We need the businesses which can scale up and provide employment opportunities
- Businesses need capital and expertise to compliment the expertise they have – quite often underestimate how much they will need of both
- Investment models have to include equity
- Many businesses lack the ability to digitise their Sales and Marketing capability
- Notion that anyone can be an entrepreneur – magical concept but an idea is just a tiny part of the process
- Mentors in mentorship programmes need to have had run their own enterprises
- LEPs need to be resourced properly – England is in a mess in terms of business support
- Business support could be better promoted
- Only 9% of investment goes into female led businesses
- Is there more we can do to incentivise and reward those creating businesses who are aiming to ‘Build Back Better’