Explore the ScaleUp Annual Review 2024

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Lancashire

Background

Lancashire continues to build on its strengths as a vibrant business environment, with its centralised business support ecosystem led by the Growth Hub—Boost Business Lancashire. This collaboration focuses on helping businesses innovate, invest, and internationalise, driving economic growth across key sectors such as aerospace, advanced manufacturing, energy, digital, food and drink, and family businesses. The Scaleup ecosystem, strengthened through partnerships with the Scaleup Institute and local programmes such as ‘Two Zero,’ is evolving to meet the demands of scaling businesses in the region.

Despite national economic challenges, Lancashire maintains a positive business outlook. A recent report from The Growth Company indicates that 15% of businesses in Lancashire are expected to grow by over 20% in the coming year, surpassing the national average of 13.1%. This represents nearly 11,500 businesses predicted to achieve significant growth. In response to the evolving business landscape, Lancashire County Council has initiated a comprehensive review of its scaleup support, with recommendations under consideration by a dedicated steering group.

SCALEUP PROGRAMMES

Launched in 2019, Two Zero is designed to help Lancashire businesses grow by 20% year-on-year. Offering a range of funded programmes, the initiative brings together ambitious business leaders and provides tailored growth support through one-to-one sessions, education, and peer-to-peer learning.

Boost Business Lancashire, through its ‘Scale to Thrive’ programme, supports high-growth businesses with a focus on developing senior management teams, attracting talent, and accessing new markets. Businesses are assisted via one-to-one coaching, peer learning, and growth workshops. Over the past year, Boost has supported over 535 high-growth businesses, 34 of which are identified as scaling companies, representing 76% of total turnover among supported companies.

Edge Hill University’s High Growth Innovation Sprint Programme has been a key contributor to Lancashire’s scaleup ecosystem. In the past year, it has supported 240 businesses, created 517 jobs, and led to the development of 145 new products. The programme focuses on product and service innovation, offering businesses the tools they need to scale effectively.

Lancashire Advanced Engineering & Manufacturing Watchtower Programme provides tailored support to Advanced Engineering & Manufacturing businesses, helping them navigate technology and sustainability challenges. Watchtower has supported 92 companies, with services including diversification and innovation support.

The recently launched Northern Powerhouse Investment Fund II (NPIF II) provides financing between £25,000 and £5 million to small and medium-sized businesses across the North of England. This initiative will play a key role in helping businesses access the funds they need to scale.

There are also a range of more public and private programmes across the North West region – find out more on the scaleup support finder here

IMPACT AND RESULTS

Two Zero supported 127 companies, with an average turnover increase from £3.4 million to £4.2 million (23% growth). Employee numbers also grew from 31.8 to 35.2.

Boost Business Lancashire assisted 535 high-growth companies, which led to a collective turnover increase of £62.8 million and the creation of 586 new jobs.

Edge Hill University’s programme has created 517 jobs and introduced 145 new products, contributing significantly to business innovation and scaling.

The Lancashire Advanced Engineering & Manufacturing Watchtower Programme has engaged 92 companies, with a focus on diversification, innovation, and employment.

LESSONS LEARNED

The conclusion of ERDF funding has resulted in the closure of several key programmes, highlighting a gap in financial support for aspiring businesses. In response, Lancashire County Council has launched the Lancashire Funding Hub, which aims to bridge this gap by helping businesses access necessary funding. The council is also working to foster greater collaboration among support organisations to meet the evolving needs of the scaleup ecosystem.

FUTURE PLANS

Looking ahead, Lancashire is preparing to launch its ‘Boost UKSPF’ offer, aimed at continuing to support the local business ecosystem. This will focus on three key areas: Start, Grow, and Scale. Additionally, the Lancashire Funding Hub will be further developed, with the introduction of a dynamic Angel Investment service to connect businesses with investment opportunities.

A long-term strategy is currently under development, with input from key stakeholders including infrastructure hubs, local universities, and government bodies. This strategy aims to support scaling businesses and align with the Lancashire 2050 framework, which promotes shared ambitions and economic goals across the region.

LONGITUDINAL ANALYSIS

According to ScaleUp Institute analysis of data received directly from ONS for years 2018-2021, the following picture emerges on the local environment.

Local Authorities located within Lancashire have a low density of scaleups, and the trend between 2018 and 2021 reveals the following:

Scaleups by Density: Moderate

The vertical axis of this matrix shows where local authorities located in this locality stand compared to the rest of the UK: 10 of the 14 local authorities have an above median density of scaleups measured by employment growth and 7 of the 14 local authorities have an above median density of scaleups measured by turnover growth.

Scaleup Trends Over Time: Moderate

The horizontal axis of this matrix shows whether the density of scaleups has increased or decreased over time relative to the rest of the UK: 8 of the 14 local authorities are above the median in terms of improving the density of scaleups by employment in their community and 7 of the 14 local authorities are above the median for scaleups by turnover.

The ScaleUp Institute will continue to monitor this closely in the coming years to track whether local initiatives move the dial in the right direction for increasing the density of scaleups.