BUILDING SMALL BUSINESS BRITAIN

EQUIPPING SMALL BUSINESS LEADERS WITH THE SKILLS AND TOOLS THEY NEED ALLOWS THEM TO TURN POTENTIAL GROWTH INTO REAL SUCCESS, TO THE BENEFIT OF THEMSELVES, THEIR EMPLOYEES AND THE ECONOMY AS A WHOLE 4 EXECUTIVE SUMMARY: AMPLIFYING GROWTH

This impact report summarises the collective progress of nearly 1,000 small business owners who have completed the programme.

With the fullest sample size to-date, the analysis shows that 10,000 Small Businesses (10KSB) UK graduates are consistently growing their revenues and creating jobs, following the behavioural and strategic changes they implement as a result of the programme.

The report looks at who the 10KSB UK participants are, the changes they make upon graduation from the programme and their impact on generating additional growth.

The wider question of their overall impact on the UK economy is also addressed. 5

THE 10,000 SMALL BUSINESSES UK EFFECT

GRADUATES MAKE KEY BEHAVIOURAL AND STRATEGIC CHANGES

Having been equipped with new tools and strategies for managing their businesses, 10KSB UK participants make are more clear changes to their businesses after graduating. 93% confident managing growth of participants increase more 10KSB UK the training participants seek 77% opportunities they 4X external finance introduced new provide to their staff than UK small 92% processes after graduating. business owners.

are still use financial launch a new developing product or services 84% data more in new products decision-making 64% in the year after 69% and services completing the three years after programme. graduating. sourced new 84% suppliers

LEADING TO INCREASED PERFORMANCE AND FASTER GROWTH

Participants are three times more likely than other UK small businesses to Participants are twice as likely to create new jobs after graduating, and increase their turnover as UK small 31% report higher employment growth 81% businesses, growing turnover on 1 averaging 31% a year.1 average at 81% a year.

As a direct result of the programme, job creation is 17% As a direct result of the programme, revenue higher than graduates would have otherwise expected.1 growth is 19% higher than graduates would have otherwise expected.1

1 ONS Business Structure Database (2015). N.B. This report builds on the 2013 and 2014 reports, with a significantly larger sample size and looking at the changes participants make over a longer period of time than was previously possible. 6 PROGRAMME BACKGROUND

10KSB UK is a comprehensive programme of business development and leadership support for small businesses with high growth potential, designed to help them achieve that potential. Piloted in late 2010 and launched in early 2011, to date, 933 entrepreneurs from across the country have graduated from the programme. The 10KSB UK programme is a partnership between Goldman Sachs, the Goldman Sachs Foundation and leading UK universities.

10KSB UK 2010–2015

The core programme comprised 100 hours of expert tuition over 12 one-day curriculum sessions spread over four months, covering Leeds University topics including finance, marketing, Business School operations and leadership. Yorkshire and the Humber Each session featured education, discussion and peer-group work to enable individual participants to define their growth goals and pool their experiences.

Manchester Metropolitan The result has been a close knit University community of business leaders North West who inspire, support and learn from each other.

Aston Business School Midlands

Saïd Business School Curriculum co-ordinator

University College London London and South East 7

10KSB UK is one of several which provides a business to new markets. The course is a programmes developed and education to women entrepreneurs highly intensive applied method of supported by Goldman Sachs and in emerging economies, 10KSB learning that directly relates to their the Goldman Sachs Foundation that first launched in the United States businesses. Participants develop aim to stimulate the growth of high in 2009. their own business growth plan potential small businesses, create throughout the course to implement Through 10KSB, participants identify jobs and grow economies. Building back in their businesses. and execute the steps necessary to on the success of the Goldman enable them to scale their ventures, Sachs 10,000 Women initiative, create employment and expand

EQUIPPING SMALL BUSINESS LEADERS WITH THE SKILLS AND TOOLS THEY HAVE NOT LEARNED BEFORE ALLOWS THEM TO TURN POTENTIAL GROWTH INTO REAL SUCCESS, TO THE BENEFIT OF THEMSELVES, THEIR EMPLOYEES AND THE ECONOMY AS A WHOLE.

Module 0 Module 1 Module 2 Module 3

Online Getting Growth and Growth and Building the Face to face started opportunity: part 1 opportunity: part 2 opportunity

Module 8 Module 7 Module 6 Module 5 Module 4

Strategies for People and Leading Leadership inancial finance and sales processes the team and culture metrics

Module 9 Module 10 Module 11 Module 12 Module 13 Developing Cash and Strategic Business Business your market funding review growth plan growth plan

10KSB UK 2016: The national cohort model

From 2016, 10KSB UK has been sessions, with over 100 hours of After they complete the course, run nationally, led by Oxford Saïd high-quality tuition. Throughout the graduates enter into a global Business School, with support 4-month programme, participants community of fellow business from Aston University, Manchester attend three residential sessions leaders where they receive ongoing Metropolitan University and Leeds over 7 days, and undertake 5 full educational support and guidance. University Business School. weeks of online learning. They continue to benefit from the rich network of their peers. To make the programme accessible The robust and stimulating peer- to businesses regardless of location, to-peer learning environment the world-class curriculum is allows participants to share delivered through an innovative their journeys and build on one blend of online and in-person another’s experience. 8 WHO ARE THE 10KSB UK PARTICIPANTS?

10KSB UK participants are selected based on their ambition and business strength, and represent the diversity of the UK small business population.

17% 29% Manufacturing Other activities 17% Professional, scientific 9% and technical activities Wholesale and retail trade 16% 12% Information and Administrative and communication support services 9

ELIGIBILITY CRITERIA

Recruitment for 10KSB UK is a rigorous and selective process. Participants BUSINESSES ENTERING must be leaders of established small businesses, have chosen to apply for the programme, and demonstrate in an interview that they have the desire THE PROGRAMME HAVE to grow their business in a peer-learning environment. The criteria for joining 10KSB UK are: An average >>businesses operating for at least three years of 21 >>have between 5 and 50 employees >>applicants should not have extensive or recent management education employees >>businesses should have turnover of at least £250,000 in the previous financial year >>applicant should be primary owner or main decision maker of the business. An average of £1.2m revenue of participants have 37% no university-level degree

BACKGROUND SOCIAL ENTERPRISE

10KSB UK participants are a 37% of participants have no One in six 10KSB UK participants microcosm of the SME community, university-level degree which run social enterprises, and they coming from a wide variety of shows the programme is giving collectively employ over 2,500 sectors. access to university-level people with a combined turnover management education to those of £112m.3 Growth is demonstrated across all who had not had access before. business sectors, and is not limited Social enterprises grow faster than to any particular industry. Business partnerships and single- other 10KSB UK participants, with a ownership businesses represent a mean employment growth rate of 10KSB UK cohorts are more gender- greater proportion of the population 43%, compared to 29%. balanced than the leadership of than the UK overall. Far fewer small businesses in the UK. Over These social enterprises are twice as participant businesses are 30% of participants are women, likely small businesses to be led by family-owned. compared to 21% of business women than men. owners for the UK as a whole.2 There is no single profile of a 10KSB UK participant aside from 73% of participants are between 1in 6 an ambition to grow and the 30 and 50 years old, and over three 10KSB UK confidence to make changes to times as many participants are improve their business. 10KSB UK participants over 50 as are under 30, showing participants are not only technology ambition is not limited to younger run social or digital firms, they span all business owners. sectors, sizes and geographies. enterprises

2 BEIS Small Business Survey 2015. 3 ONS Business Structure Database (2015). 10 HOW DO 10KSB UK PARTICIPANTS CHANGE FOLLOWING THE PROGRAMME?

The 10KSB UK programme increases participants’ growth by encouraging the development and application of key management practices and business strategies within their businesses. This section reports these strategic and behavioural changes, and the performance of participant businesses following their completion of the programme.

93% 92% 84% 84% more confident introduced new use financial data more sourced new managing growth processes in decision-making suppliers 11

STRATEGIC CHANGES OVER 70% OF PARTICIPANTS SOUGHT SINCE GRADUATING EXTERNAL FINANCING AFTER FOLLOWING FINANCING THE PROGRAMME, WHICH IS FOUR TIMES HIGHER THAN ALL UK SMALL BUSINESSES.

Many small business owners are TYPES OF FINANCING SOUGHT BY 10KSB UK PARTICIPANTS intimidated by the process of seeking external finance. Bank overdraft 33% The 10KSB UK programme helps participants understand financing Public sector grant 25% and succeed in securing the Leasing/HP 22% financing that is right for their Bank loan 20% business. Directors’ loans 17% 72% of men seek finance, compared Equity new shareholders 11% to 65% of women. Equity existing shareholders 10% Participants under 35 years old Factoring/invoice discounting 9% seek external financing more often than older participants, despite Mortgage 8% traditional barriers to financing Peer-to-peer/crowdfunding 7% Debt reported by young borrowers. • Loans family/friends 7% • Equity CDFI loan 5% • Other

10KSB UK graduate Operating globally, Autins Group manufactures acoustic Jim Griffin and thermal insulation materials for the automotive Autins Group industry and other markets. The business has an annual turnover of just under £20m and employs 120 people. Autins Group PLC successfully floated on the London Stock Exchange AIM market on 22 August 2016.

“The first major challenge to my “Following 10KSB UK, the business thinking came at the interview as I quadrupled its revenues, listed had to justify why I needed to come publicly on the London Stock on the programme. Having to set Exchange AIM market in August out and defend the potential growth 2016, and my passion and drive for opportunities for the business was a the business has been reignited. I major step for me. On the first day still keep my business growth plan I was excited to meet all the other up to date for each of the businesses participants who thought like I did, and it really helps knowing how to had passion for business and had the understand the numbers.“ same problems as me!“ How do 10KSB UK participants change following the programme?

TALENT DEVELOPMENT The 10KSB UK programme has a 77% of participants increase strong focus on the employees of the training opportunities that the small businesses that attend the they provide to their staff after course. From recruiting, training and graduating. Participants clearly retaining the best talent, to building consider investing in their staff a an organisation with a coherent priority as they go back to their core structure, the programme businesses. encourages participants to consider their place in the business and how they should structure their team to maximise growth.

of participants increase the training opportunities they provide to their 77% staff after graduating.

10KSB UK graduate MiddletonMurray develops great careers for Angela Middleton the next generation of employees and builds MiddletonMurray future-proof workforces for SME clients. Since completing the programme the business has become targeted on finding young people their first job, and this focus has been the main driver of their growth.

After graduating from 10KSB UK, Angela “Our recruitment, induction and introduced an LLP entity so that high performers within her company could become performance management of partners, and share ownership of the business. staff has really improved aided She also made significant improvements by the implantation of a system to monitoring key performance indicators, with their customer service rating now being called breathehr – a cloud-based measured objectively, and more than doubling HR product designed by a fellow since the system was introduced. 10KSB UK graduate. We’ve been The business has won several industry awards approached by several interested including the Mayor’s Fund for London’s ‘Best Pre-Employment Brokerage’ and buyers and investors, and are Apprenticeship4England’s ‘Best Apprenticeship approached by people wanting to Provider’ awards. This is as a result of significant innovation which sees the business work for us on a daily basis.” transform young people and place them into work in an efficient but effective way. 13

INNOVATION 64% of 10KSB UK participants One in six participants starts a new launched a new product or service venture alongside existing business in the year after joining the following graduation. Despite programme. running two or more businesses, they exhibit turnover growth at the The level of innovative business same rate as other participants. behaviour is almost twice that of Their businesses employ 24 people the small business sector overall in on average, and report growth rates the UK.4 10% higher than fellow participants.

launch a new are still developing product or services new products in the year after and services 64% completing the 69% three years after programme. graduating.

10KSB UK graduate Monster Group (UK) is an online retailer based in York, Rana Harvey established in 2007. It has experienced exponential Monster Group UK growth and now includes several privately-held companies supplying a diverse range of products to customers and business all over the world. In November 2015, Rana purchased a 90,000 square foot warehouse in North Lincolnshire to run alongside the premises in York, allowing her to drastically increase the group’s product offerings. She also set up a Research “I had never dreamed of developing and Development (R&D) centre in York, resulting in an R&D site before I started the more efficient product development and increasing the company's competitiveness in the market. programme – I was focused on driving international sales. The strategy and “We now constantly ask our customers operations management modules for feedback, and our customer changed all that. Ansoff’s matrix services team are in frequent dialogue showed me that faster growth would with the supply chain, to develop come from product diversification. faster and save us money. It can be The Japanese continuous improvement simple things, like strengthening the model revolutionised our innovative feet on a shelving rack, integrating a capability; something doesn’t have to thermometer into the system, or just be broken to fix it! Then drawing out making the power cables longer, but it our process map identified where we works exceptionally well.” could automate and add real value to win more sales.” How do 10KSB UK participants change following the programme?

INTERNATIONALISATION The 10KSB UK programme Following graduation, 35% of encourages participants to think exporting businesses increase the about internationalisation in all amount they export, and these aspects of the course – from businesses are also creating building opportunities to developing jobs twice as fast as other 10KSB markets for their products and participants, and six times as fast services. Exporters, even those as UK small businesses.4 who became so by ‘chance’, can The strategic benefit of use the tools in the course to internationalisation is clear. clearly structure and grow their international activity.

10KSB UK participants that are exporting create jobs six times faster than UK small businesses

10KSB UK graduate Micro-Fresh is a leading brand for antibacterial and Byron Dixon odour inhibiting properties in footwear, sportswear, Micro-Fresh the medical bedding, health and hygiene sector, and homeware and construction industries. Since graduating, Byron has increased the global footprint of Micro-Fresh further, launching the product in the Chinese children’s footwear market. It has recently secured a contract with one of China’s largest laundry chains, Josephine Laundry Co. and now has offices in “Taking part in the programme India and Singapore, with distribution agents in Italy, Portugal, Vietnam, Indonesia and Jamaica. Micro-Fresh has helped me to form a joint will soon be expanding into Turkey, Pakistan, Brazil and venture with fellow 10KSB Hong Kong. UK participants, set up a joint venture with another, “Micro-Fresh is enjoying growth independent business partner at around 40% year-on-year now and develop, test and launch with the right tools, strategy and a new product range, all while plan as a result of the 10KSB UK expanding the business’ programme.” global footprint.” 15

PRODUCTIVITY Some of these measures work in It is clear that supporting small tandem to compound the effects businesses with the aim of of the programme. In particular, internationalising and innovating productivity has been linked to further has a positive effect on their innovative, internationalising productivity. Investment targeted behaviour when undertaken at these businesses could have a simultaneously. tangible impact on the UK economy and support further job creation. 10KSB UK participants are more likely to be engaged in innovative and international behaviour. The evidence from these fast- growing 10KSB UK businesses is that there is a positive association between innovation, internationalisation and growth. Productivity growth among 10KSB UK participants is being driven by engagement in global markets and innovative practices.

INCREASING INTERNATIONALISATION AND INNOVATION HAS A POSITIVE EFFECT ON PRODUCTIVITY5

120 Innovator and exporter Index of productivity Index

Non-innovator/ non-exporter

100 2010 2015 Productivity is defined as revenue per employee

4 BEIS Small Business Survey 2015. All 10KSB UK participants have been linked to the official ONS firm-level datasets in the UK to allow annual tracking of their employment and revenues. This analysis is undertaken for the period 2010–2015. Sample size = 120 (83 10KSB UK innovators and exporters and 37 10KSB UK non- innovators and non-exporters). 5 ONS Business Structure Database (2015). 16 WHAT IS THE IMPACT OF 10KSB UK?

Business growth is affected by innumerable factors ranging from the macroeconomic climate to the individual entrepreneur’s mindset. However, there is a significant, tangible impact delivered by 10KSB UK, which this section identifies.

The analysis show that 10KSB UK participants are more likely to report significantly higher employment and turnover growth when compared to small businesses across the UK.6

On average, three times as many participants are creating jobs as other UK small businesses, at an average rate of 31% per year.6

Twice as many 10KSB UK participants grow turnover, at a rate that is on average 13 times greater – 81% per year – than the broader small business population in the UK after they graduate.6 17

Participants of the 10KSB UK 2. Businesses drawn randomly of 285 participants who completed programme have also been shown from the wider small business the programme between 2011 and to make a number of strategic population whose prior turnover 2013 and analyses their growth changes in their businesses after growth distribution, business age, from 2013 to 2015.8 graduating and are more likely than size and sector were similar to The analysis of the growth other small businesses to do so. that of the 10KSB UK programme participants. Two separate control performance of 10KSB UK To understand the impact of 10KSB groups of this type are used which participants against random UK on graduates and the broader each take a different, equally-sized control groups has revealed a UK economy, three control groups of random selection of businesses clear programme effect. similar small businesses were built. against which to compare 10KSB These two control groups 1. Businesses that applied to the UK graduates, labelled ‘Control A’ produce a positive and significant programme and were selected for and ‘Control B’.7 interview, but were not ultimately employment effect, ranging from The analysis of the economic selected to participate (‘near misses’). 29% to 33% over two years, and impact of the programme – the This is the most robust control group. turnover effect, ranging from 25% ‘programme effect’ – uses a subset to 26% over two years.

10KSB UK participant employment and turnover growth compared to two randomly selected control groups:

EMPLOYMENT TURNOVER Pre- Programme Post Pre- Programme Post programme participation graduation programme participation graduation

168 177 Index of turnover Index of employment 100 100 2009 2010 2011 2012 2013 2014 2015 2009 2010 2011 2012 2013 2014 2015 • 10KSB UK participants • 10KSB UK participants • Control A • Control A

Pre- Programme Post Pre- Programme Post programme participation graduation programme participation graduation

173 167 Index of turnover Index of employment 100 100 2009 2010 2011 2012 2013 2014 2015 2009 2010 2011 2012 2013 2014 2015 • 10KSB UK participants • 10KSB UK participants • Control B • Control B

6 ONS Business Structure Database (2015). 7 Many different control groups were run, with these two (which were the strongest-performing control groups) chosen to illustrate the programme's effect. Each control group contains a random selection of around 285 UK small businesses which exhibited a comparable growth trajectory pre-programme to the 10KSB UK businesses. The businesses selected for the control groups are distributed across geography, size, employment, revenue to be as close as possible in make-up to the 10KSB UK group. 8 In due course all participants on the programme will be analysed over the 2010–2015 period when sufficient years have elapsed, but currently there is an earlier pre‑treatment, treatment and post-treatment period to enable the effect of the programme to be investigated for the largest number of participants. N.B. Scientifically isolating the effect of10KSB UK would require deliberately excluding a random control group of businesses who would have normally been accepted onto the programme, simply to monitor their performance relative to participants. However, adopting such an approach would be against the guiding principle of the programme to grant access to all eligible high-potential entrepreneurs. What is the impact of 10KSB UK?

The graphs below show the growth There is a strong and significant This is clear evidence that practical, trajectory of 10KSB UK participants boost to employment and turnover theory-informed peer-learning in terms of employment and in the group of participants – 17% develops participants’ core business turnover against the ‘near misses’. and 19% respectively over two years skills and equips them with the when compared with the closest These charts show that the subset tools to make significant strategic control group of the ‘near misses’. of 285 10KSB UK participants who changes so they can deliver further undertook the programme in the The 10KSB UK programme has had growth on their already strong 2011–2013 period grew faster than a statistically significant boost to the business potential. the near-misses control group in employment and turnover growth This effect holds true for social terms of turnover and employment trajectory of participants over enterprises as much as other after their participation in and above what they would have for‑profit small businesses. the programme. experienced.

Employment and turnover growth

EMPLOYMENT Pre-programme Programme participation Post graduation

175

Index of employment 100 • 10KSB UK participants • Near misses 2009 2010 2011 2012 2013 2014 2015

TURNOVER Pre-programme Programme participation Post graduation

190

100 Index of turnover • 10KSB UK participants • Near misses 2009 2010 2011 2012 2013 2014 2015 19

ESTIMATING POTENTIAL Small businesses are the engine impact on the participant with of the UK economy. Small and businesses, the collective economic ECONOMIC IMPACT medium firms with fewer than contribution to national economic 250 employees account for growth is also crucial. 15.6 million (60%) of all private 10KSB UK participants today sector jobs in the UK and £1.75 collectively produce over £2.1bn trillion (47%) of revenue. of revenue and sustain more than Whilst the success of 10KSB UK 39,000 jobs in the UK.9 is measured in the individual

The 10KSB UK programme is designed to help accelerate businesses with high-growth potential. Looking at the UK small business environment, this population can be identified and targeted with greater support:9

all small business private 5,094,082 sector population

2,156,546 with employees

1,867,095 not born in 2015

513,483 with 4–50 employees

that grew size of 156,811 employment 2014–2015

with same employment growth 38,055 distribution as 10KSB participants

It is more pressing than ever that IF ALL 38,055 BUSINESSES investment in education of small business entrepreneurs is supported to sustain the THAT EXHIBIT A COMPARABLE population of job creators and keep them growing. GROWTH AND PROFILE TO 10KSB As the programme transitions to a national UK PARTICIPANTS WERE GIVEN model by recruiting businesses from more THE OPPORTUNITY TO ENGAGE diverse geographies, these results of programme impact demonstrate that 10KSB WITH THE PROGRAMME AND UK is a vehicle for net additional growth to CONSEQUENTLY INCREASE both local and national economies. THEIR EMPLOYMENT BY 17%, Using an average GVA (gross value added) per job filled figure of £51,947, it is IT WOULD RESULT IN AN possible to work out the potential for the UK economy of extending useful business ADDITIONAL 83,388 JOBS education to small business leaders.10 WITH A GVA BOOST TO THE UK ECONOMY OF £4.3BN.

9 ONS Business Structure Database (2015). 10 ONS sub-regional productivity: August 2016: GVA per filled job in England, 2014, Table B3. The 2015 GVA of £51,947 is calculated by taking average annual growth 2011–2014 and increasing the 2014 value by the average rate of 2.4%. 20 EXCEPTIONAL GROWTH STORIES

A selection of 10KSB UK participants have used the tools, processes and skills they learned on the course to successfully drive extraordinary further growth in their businesses.

They have all at least doubled their turnover and taken on new staff since graduation. 21

Shakoor Ahmed Amanda Ball MyLahore +744% 213 AD Sprinkler Protection Ltd +293% 22 Location: Bradford Revenue since New jobs Location: Denton Revenue since New jobs Graduated: 2011 graduating created Graduated: 2013 graduating created

MyLahore runs a chain of restaurants that provide a unique AD Sprinkler Protection designs, installs, project manages and style of Asian food with ‘wow’ factor. Since graduating, the maintains sprinkler and fire protection systems across the UK. company has opened a number of popular restaurants in Since completing the programme, AD Sprinkler Protection is Bradford, Leeds, Manchester and Birmingham. constantly evolving each year to better itself. Its turnover has increased from £1.5m to £4.4m, and it now has 37 employees.

Natalie Blakely Alison Bowcott-McGrath Light Touch Clinic +483% 7 PinPointer +217% 8 Location: Weybridge Revenue since New jobs Location: Manchester Revenue since New jobs Graduated: 2011 graduating created Graduated: 2012 graduating created

Light Touch is an award winning Cosmetic Medicine Clinic, After a major rebrand PinPointer, formerly known as providing high-quality anti-ageing treatments and skincare. Bo-Concepts, is one of the UK’s largest place consultants. Following the programme, Natalie has developed a new strategy Since graduating Alison has experienced significant turnover to include the wellness market, by opening a boutique gym. growth and taken on eight new staff members.

Janet Bowden Steve Day a Ltd +284% 10 Contract Flooring Solutions Ltd +296% 119 Location: Cheshire Revenue since New jobs Location: Rubery Revenue since New jobs Graduated: 2012 graduating created Graduated: 2014 graduating created

Woodbank Office Solutions is one of the UK’s largest suppliers Contract Flooring Group supplies and installs many types of digital, multi-functional photocopiers and network printers. of flooring primarily to the new house build sector. After After graduating, Woodbank opened up a new branch in participating, it is investing in a new premises, which is part Liverpool, and negotiated a new agreement allowing it to externally-financed. Steve would not have considered exploring tender for corporate accounts. financing options before taking part in the programme.

Byron Dixon Jim Griffin Micro-Fresh +464% 3 Automotive Insulations +331% 48 Location: Leicester Revenue since New jobs Location: Rugby Revenue since New jobs Graduated: 2013 graduating created Graduated: 2012 graduating created

Micro-Fresh is the go-to brand for antibacterial and odour Automotive Insulations manufactures acoustic and thermal inhibiting properties in footwear, sportswear, bedding insulation materials for the automotive industry. The group and homeware. Since graduating, Micro-Fresh has has expanded from one to seven sites across Europe, and Jim internationalised further, launching Byron’s product in China in has partnered with Indica Automotive, to expand the reach of the children’s footwear market. the group. Exceptional growth stories

Rana Harvey Andrew Hudson Monster Group (UK) +331% 14 G&H Sustainability Ltd +1167% 110 Location: York Revenue since New jobs Location: Leeds Revenue since New jobs Graduated: 2012 graduating created Graduated: 2013 graduating created

Monster Group distributes a range of products as diverse G&H reduces its customers’ energy use and carbon footprint as kitchenware, store dummies, clothing racks and popcorn by installing renewable energy systems in schools and dispensers, throughout the UK and globally. Business growth has commercial buildings. Since graduating, G&H has been been exceptional since the programme, with the group expanding bought out by a larger company, allowing the business to to new sites and increasing the range of products offered. grow more rapidly within a broader group.

Damian Kenefick Alexis Krachai Click On Tyres Ltd +379% 10 Counter Context Ltd +348% 8 Location: Bradford Revenue since New jobs Location: Sheffield Revenue since New jobs Graduated: 2013 graduating created Graduated: 2013 graduating created

Click on Tyres sells car tyres across the UK and into Europe, Counter Context is a leading communications company that providing automotive industry expertise directly to end specialises in helping clients to consult, engage and promote. consumers. The enterprise has increased its services, opened Since completing the programme the company has grown in more offices and gained online sales. scale and confidence, with an increased focus on customer value, longer-term client support, and investment in new systems.

Tim Landreth Susanna Lawson The Natural Childcare Company Ltd +292% 15 OneFile +317% 47 Location: Solihull Revenue since New jobs Location: Manchester Revenue since New jobs Graduated: 2014 graduating created Graduated: 2012 graduating created

The Natural Childcare Company runs two nurseries offering OneFile makes education and training simpler by replacing outstanding childcare for children. Since completing the paperwork with its digital technologies. It implemented a programme, the company has moved one nursery and opened sales CRM which allowed for complete oversight of the sales in a new larger setting. pipeline. This has increased business intelligence about sales won and lost.

Angela Middleton Gareth Roberts MiddletonMurray +261% 44 Comply Direct Ltd +584% 10 Location: Sidcup Revenue since New jobs Location: Skipton Revenue since New jobs Graduated: 2013 graduating created Graduated: 2011 graduating created

MiddletonMurray develops careers for the next generation of Comply Direct helps other businesses to meet environmental employees and builds future-proof workforces for SME clients. standards in the UK and overseas. Since completing the The company has had an increase in contracts, been accredited programme, the company is now offering an international as a ‘Good’ Ofsted provider and has had media appearances compliance service in addition to a UK-based service. on BBC Radio Kent, Sky News and London Live. 23

David Showell Howard Simms Cycle Confident +1200% 141 Apadmi Ltd +600% 8 Location: West Molesey Revenue since New jobs Location: Manchester Revenue since New jobs Graduated: 2012 graduating created Graduated: 2013 graduating created

Cycle Confident gives children and adults the qualifications Apadmi creates mobile experiences for the world’s most and confidence they need to cycle safely on the roads. Since renowned businesses. As a result of the programme, the graduating, it has developed a new mechanics training centre company has performed three investments and one acquisition and developed partnerships with the freight industry to to date, with one investment recently raising £11m in funding. improve road safety education.

Rich Smith Jonny Staley Bluesmith Information Systems Ltd +435% 26 J Staley Stonework Ltd +350% 15 Location: Leeds Revenue since New jobs Location: Richmond Revenue since New jobs Graduated: 2012 graduating created Graduated: 2012 graduating created

Bluesmith builds bespoke IT applications and business Staley Stonework specialises in bespoke stonework, intelligence systems for Blue-chip and government clients. construction and restoration throughout the North East. Being Using the tools of the10KSB UK programme, Bluesmith part of the programme gave Jonny the confidence to grow the developed three key business areas: training programmes, business where previously he had been hesitating, purchasing targeting customers, and marketing approaches. two new offices and storage facilities.

Care First™ Living and learning for a brighter future.

Neil Thorogood Gary Vizard Care First Management Services Ltd +240% 27 EnergyAce +286% 8 Location: Birmingham Revenue since New jobs Location: Skelmersdale Revenue since New jobs Graduated: 2013 graduating created Graduated: 2014 graduating created

Care First helps adults with learning difficulties, disabilities EnergyAce is a manufacturer and solution provider of energy or challenging behaviour to develop skills in new ways. The saving and energy efficient solutions for industrial, commercial company has opened two new sites, and is now a member of and residential applications. Recently, the business has Birmingham Charter for Social Responsibility. internationalised further, with a plan to generate a global distributorship through new offices in Saudi Arabia and Bahrain. 24 METHODOLOGY

Data sources a method for standardising a range of using the ‘near-misses’ as the values – in employment and turnover control group, and therefore the OLS There are two main data sources between 2013 and 2015 to reduce regression method was used for all used in this impact report. the impact of extreme values in the three control groups. First, for monitoring and evaluation analysis. The 10KSB UK programme The coefficients generated by the purposes standardised interviews impact is differentiated by a binary model identifying the programme are conducted with 10KSB UK variable within the model. impact equate to a 17% increase in participants by BMG Ltd when they To understand the impact of 10KSB employment and a 19% increase in begin the programme (the ‘baseline’ UK on graduates and the broader turnover. survey) and then approximately 6, 18 UK economy, three control groups of and 30 months after core programme Acknowledgements similar small businesses were built: completion. Interviews are conducted All monitoring and evaluation, by CATI (telephone), which has >>those firms who applied and were statistical analysis, and external proven to deliver the highest interviewed for the programme data were provided by Professor response rates and best data quality. but were unsuccessful in gaining a Mark Hart and Dr. Karen Bonner of place (‘near-misses’); Second, 10KSB UK participant data the Aston Centre for Growth and > two randomly selected control as well as data from those who Enterprise Research Centre. groups of non-participants applied but were not successful from the wider small business The statistical data used here and control groups, were linked population who had a similar are from the Office of National to official ONS data contained in turnover growth distribution Statistics (ONS) and are Crown the Inter-Departmental Business (between 2009 and 2011 – in the copyright and reproduced with Register (IDBR). Special permission two years prior to participation) as the permission of the controller has been granted by the ONS for the 10KSB UK participants. of HMSO and Queen's Printer 10KSB firm-level data to be linked for Scotland. The use of the ONS to this data source under strict In all models the growth data on statistical data in this work does not disclosure protocols in the UKDS. employment and turnover was taken imply the endorsement of the ONS All employment and revenue data from an official ONS longitudinal in relation to the interpretation or used to estimate the impact of the dataset – the BSD – which is based analysis of the statistical data. programme as well as data on firm on annual snapshots from the The analysis upon which this report characteristics (size, sector, age) IDBR. Additional variables in the OLS is based uses research datasets and prior growth is sourced from estimation using the ‘near-misses’ which may not exactly reproduce the longitudinal ONS Business control group included personal National Statistics aggregates. Structure Database (BSD) which characteristics of the owner (such is based on annual extracts from as age, gender, education level, and the IDBR. This database covers all ownership stake amongst others) registered businesses (i.e., VAT and firm characteristics (such as size, and/or PAYE) in the UK. age, type of business, and sector). Measuring programme impact Econometric treatment models, To identify the 10KSB UK impact on which are widely used in evaluation turnover and employment growth studies, were run to estimate the a series of Ordinary Least Squares effect of the 10KSB UK programme. (OLS) models were used to estimate These models correct for any the impact (between 2013 and 2015) selection bias associated with for a group of participants who had businesses applying for the already completed the programme programme or being selected (i.e., in the 2011–2013 period). Growth onto the programme. The results was measured as the log difference – indicated no selection bias when

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