Welcome to a new buzzword to explain a simple thing like how to grow your business?
One week ago, after the presentation of results at Orion Technological Park on entrepreneurship, and after a long talk with several people about the impact of entrepreneurship programs, I was thinking on where in the pipeline of business development we can create more value? Where institutions, government and individuals can impact more at economic development?
I saw the scalerator term for the first time from Daniel Isenberg at the Babson Entrepreneurship Ecosystem Report. Isenberg developed the program, that includes a mix of peer-to-peer exercises and faculty-led workshops, which have helped more than 100 companies enter into new, rapid growth.
Very similar to a startup accelerator for scaleups.
“Scale up refers to a company that grows consistently and significantly. Precedent suggests quantifying high-growth firms as having 20 percent growth in revenues or headcount for three years running, after reaching at least 10 people and $1 million in revenues” – Isenberg & Onyemah
The Scalerator NEO, one of the first program under this “concept”, works with companies with an annual revenue between $5M and $15M.
Do we need more programs focused on scale ups? Are these kind of programs a new solution for the missing middle?
The missing middle?
(Original from Entrepreneurial Finance Lab research Initiative of the Center for International Development at Harvard University)
Developing countries have a large number of microenterprises and some large firms, but far fewer small and medium enterprises.
In high-income countries, small and medium enterprises (SMEs) are responsible for over 50% of GDP and over 60% of employment, but in low-income countries they are less than half of that: 30% of employment and 17% of GDP.1
This SME gap is called the ‘missing middle’.