The Scale-Up Institute figures quoted in a recent Vistage whitepaper report show that fewer than 4% of all UK start-ups have 10 or more employees 10 years into their lives, this demonstrates that the majority of start-ups fail to scale – Why is this?
Guy Rigby of Vistage partner Smith & Williamson sees lots of businesses that start with a visionary flourish, only to stall after failing to add more customers because they haven’t innovated or got their marketing right. They lose their way, unable to see how to get to the next stage and become one of the ‘living dead’. These businesses are going nowhere, having lost their vision and reason for existing.
Scale-up is an entirely different business environment, it’s more than just entering an accelerated growth phase. The difference with scale-ups is that the game changes so fast and often simultaneously in all these areas, when growth accelerates. And as we have seen, the price of failure is larger in a scale-up.