MITIE has launched the ‘MITIE Entrepreneurial Programme’, commencing with its first £10 million fund to back management teams with innovative ideas for starting mutually owned businesses in the UK.
It is open to people from both the private and public sectors who want to run a business with MITIE’s support. With a rapidly changing landscape in the UK public sector, the fund will be particularly targeted at teams that have considerable public sector experience and innovative business ideas to support the government's focus on efficiency and deficit reduction.
The new fund will be open to dynamic management teams with a viable business plan to develop a mutually-owned business with the support of equity, working capital, management expertise, back office and administrative infrastructure from MITIE.
MITIE, which stands for Management Incentive Through Investment Equity, has a long history of partnering with management teams to start up businesses, having participated in over 80 successful start- ups using the 'MITIE model' in its 23-year history.
The 'MITIE Model' is structured so that management teams take an equity stake in a business which they are motivated to grow over a five to 10-year period and is eventually acquired by MITIE in full.
This model has not only supported hundreds of entrepreneurs to build successful businesses in the UK, but has contributed to MITIE's excellent track record of growth and allowed those entrepreneurs to share in that success. It has also provided the basis for many successful careers in outsourcing, with a large number of MITIE's senior management team having participated in equity models.
Ruby McGregor-Smith, MITIE’s chief executive, said: "We are passionate about providing opportunities for people to develop their careers and grow successful outsourcing businesses. With the launch of this fund we hope to attract dynamic entrepreneurial teams that want to start mutually owned businesses which provide innovative services to their customers and create jobs in the UK."