Will start-up businesses be more likely to succeed if they receive help from a business mentor?

Britain is often portrayed rightly or wrongly as a nation of shopkeepers and small businesses. To a degree that statement is true, as the majority of businesses in the UK are small businesses. The coalition government believes that it’s the spirit and drive of this kind of entrepreneur that will help to bring the nation out of the current economic doldrums, as they drive the economy and help to employ others. Many people would love to start their own business, but most of us aren’t quite brave enough to sink our hard-earned money into a venture with an uncertain outcome. Statistics indicate that approximately 50 percent of new start up businesses fail within the first five years of trading, so it’s understandable that most budding entrepreneurs are worried. Still, that must mean that the other 50 percent succeed. What did they manage to do differently? Why were these businesses successful? Well, the majority of successful start-up businesses had the backing of a business mentor at the outset: a go-to person with direct experience who could advise, inspire and encourage these entrepreneurs when they faced new challenges.

How can business mentoring help start-up businesses?

Running a business can be a lonely existence, particularly at the beginning, especially when you realise that you’re on your own and that the buck stops with you. Obviously we all probably have someone we can speak to like a partner or a friend, but unless they have an understanding of the challenges you’re facing, they won’t be able to give you the sort of advice and information you’ll probably want. A business mentor, on the other hand, can offer the kind of expert advice and guidance you need. They can be a sort of business guru, and act as a sounding board. Most mentors will have had entrepreneurial experience, and will have probably faced the same sorts of challenges that all new businesses are likely to face. They’ll be able to tell you what it’s like to work in the business day-to-day, and share tips and advice about business strategies that have worked for them or gone terribly wrong. They can also provide constructive advice and encouragement when tough decisions need to be made. They can even give you a bit of tough love on the occasions where the situation demands a bit of brutal honesty. Most importantly of all they can open up a broad network of business contacts, that will repay tenfold over the life of the business. A business mentor can play a crucial role in driving a new business towards success.

How important is a business mentor?

A recent Gallup survey supports the contention that mentor support plays a vital role in underpinning new businesses. Gallup surveys in 83 individual countries indicate that adults who have access to a mentor are three times more likely to say they are planning to start a business than those who do not have a mentor. Mentors are equally important for both men and women. Gallup data indicates that 16% of men who have access to a mentor plan to start a business, compared with 6% of those without. Eleven percent of women with access to a mentor plan to start a business, compared with 4% without a mentor. 50% of small businesses fail in the first five years. The reason for this is essentially the founder’s lack of business experience.  Gallup researchers claim that “without a mentor, an entrepreneur may find it difficult to access resources, build networks, and create partnerships that help the enterprise grow.” The Gallup researchers conclude in their report: “There are tangible and intangible benefits of having a mentor. Gallup’s consulting work shows that pairing an entrepreneur with a mentor increases confidence and self-awareness as well as enhancing business thinking and risk taking among the entrepreneurs.”