The Entrepreneurs Are Coming
This article first appeared in Space Trade Magazine, March 2013
It would seem somewhat outlandish to claim that the UK space sector – boasting possibly the most highly skilled workforce in the country – suffers from a lack of talent.
After all, this is an industry where almost two thirds of its employees have degrees and productivity is well above the national average. Even so, there is something – or someone – missing. The entrepreneur.
There can be no doubt that this is an exciting, crucial time for the sector. Three years after the UK Space Industry set its 20-year strategy to capture 10% of the global market (forecast to be worth more than £400bn by 2030), the potential for growth has never been more significant. Realising this potential, however, will depend heavily on the industry’s ability to fully exploit its technology.
The next decade will see tremendous development in downstream markets, creating with it considerable opportunity. The advent of commercialising space is well and truly upon us. It is, therefore, imperative that there is sufficient commercial experience in the industry to capitalise on this.
The space sector in Britain is a world-class capability, populated with brilliant individuals, passionate about their work. This is to its credit but there is a danger, however, that the industry is so overwhelmingly inhabited by people with a passion for space that alternative applications for its technology are not explored and real opportunities are being missed.
Further exacerbating this problem is the nature of the industry’s funding. Ventures are often grant-funded and exist to achieve technological or scientific objectives, as opposed to profitability targets. In other words, the impetus to make money is weaker.
Despite this, it is difficult to fathom a sector with greater potential for commercial growth. Space has proved resilient in the face of a troubled economy and the strength and abundance of its IP is unrivalled. The 10% market share strategy is ambitious but it can be achieved if government and industry work together.
Inward investment and funding from the private sector will generate significantly more opportunity for greater advances in technology and manufacturing. It will also help create a culture in which companies are required to think laterally about their IP and how else it can be applied to the benefit of mankind, the economy and the business’ own bottom line.
Attracting private investment will rely on a number of factors – one of which is changing attitudes in the UK so that space is seen as critical infrastructure. Looking more internally, businesses trying to secure funding will need to have an “investable” leadership team. One that a potential investor will trust to deliver a decent return as well as ground-breaking technology.
This, unfortunately, is where the industry can fall short. The emphasis has, for so long, been on developing and attracting exceptionally skilled individuals in the ‘STEM’ fields – and quite rightly so – these are the people pioneering the advancement of space technology. But, if the industry is to really move forward, they now need to be joined by those capable of commercialising it.
When the cleantech sector was in its infancy, it had no shortage of talented scientists or visionary ideas but it lacked people who could bring those concepts to market and, furthermore, make money from them. To address this, many businesses looked to more mature, related industries (such as oil, energy and utilities) for individuals who could understand their aims and make them reality. Boards were complemented with the addition of someone experienced in commercialising technologies, dealing with private investors and fundraising. Someone investable.
The space sector must emulate this. Perceptions in the UK are already starting to shift and the important role that space technology will play in the future prosperity of Britain is becoming ever more apparent. The entrepreneurs are coming. The industry needs to make sure it is ready for them.
About Dermot Hill
Dermot is one of the founding directors of Intramezzo and is responsible for strategy, alliances, quality and commercial performance. With a background in sales, marketing and general management in the ICT sector, he has extensive experience in launching, building and transitioning commercial organisations.
A seasoned entrepreneur himself, in mid 1997 Dermot bought a dotcom retailer as a ‘turnaround’ for £9,000. The organisation went on to achieve a valuation of £12.5million in just two and a half years.