Business Mentoring Increases Small Business Survival Rates

The data shows that mentored businesses were 12% more likely to remain in business after one year, compared to the national average. This supports existing research that shows entrepreneurs with access to a mentor are five times more likely to start a …

Mentoring doesn’t just help young professionals gain the experience and wisdom they need in the workforce, it can also increase the likelihood of small business success.

That’s according to a new survey from SCORE, the nation’s largest network of volunteer, expert business mentors. The data shows that mentored businesses were 12% more likely to remain in business after one year, compared to the national average. This supports existing research that shows entrepreneurs with access to a mentor are five times more likely to start a business than those who do not have a mentor.

Working with a mentor at least five times greatly increases an entrepreneur’s likelihood of business success.

  • 30% of business owners (both men and women) who had just one interaction with a mentor reported business growth, a number that increased with subsequent interactions and peaked at 43% of business owners who had five or more mentoring interactions reporting growth.

Women entrepreneurs experience success when they are expertly mentored, regardless of their mentor’s gender.

  • Women entrepreneurs were just as happy and successful working with mentors of either gender. What mattered to entrepreneurs (of both genders) was a mentor’s helpfulness, respectfulness, listening skills and open-mindedness, accurate assessment of a client’s business situation, and ability to provide relevant advice.

The top three issues entrepreneurs asked their mentors for help with were:

  • Human resource issues (61%)
  • Growth/business expansion (59%)
  • Start-up assistance (53%)

“This data confirms what SCORE has learned over 54 years of helping 11 million entrepreneurs to start or grow their businesses – that mentoring has a significant, positive impact on small business success rates,” said SCORE CEO Ken Yancey. “We were surprised to find that there was no statistically-significant difference in our clients’ satisfaction rates according to whether an entrepreneur worked with a mentor of the same gender. Above all else, our small business owner clients want a mentor who listens to them, and who accurately assesses their particular business situation. They want a mentor who is helpful and who provides relevant advice in a respectful manner. SCORE’s 10,000 experienced mentors are happy to volunteer their time doing just that.”

Source: cpapracticeadvisor.com ~ Image: Canva Pro

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