Mentoring Found to Increase Small Business Survival Odds

Home » Small Business » Small Business News » Mentoring Found to Increase Small Business Survival Odds

Mentoring Found to Increase Small Business Survival Odds

When it comes to starting a new business, having someone by your side who knows the ropes can go a long way. Whether it’s a one-time meeting or long-term mentorship, having the opportunity to ask questions and get encouragement can mean a lot to a budding entrepreneur. Now a new study finds that having a mentor can also help increase a small business’s survival odds.

According to data from SCORE, business owners who had a mentorship were more likely to still be in business one year after opening. While three-quarters of mentorless entrepreneurs survived their first 12 months, that number rose to 87% among those with mentors. Further data shows that the number of interactions with said mentor can also have an effect on a business’s success. In fact, on the whole, those who reported meeting more than five times with their mentors were less likely to be struggling and more likely to be expanding than those who only had one meeting (28% to 39% and 43% to 30% respectively).

Not only did the study discover mentor relationships to have a positive influence on business survival rates but also found that they led more would-be entrepreneurs to start their ventures in the first place. Of those without access to a mentor, only about 2% go on to start a business. Meanwhile those with mentors were found to be five times more likely to follow through on their business ideas, with 10% starting businesses.

It should be noted that SCORE, the nonprofit association behind this study, offers a large business mentor network. However this is something SCORE CEO Ken Yancey acknowledged in a statement regarding the study’s finding. He said, “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.”

Although this study was released as part of SCORE’s “The Megaphone of Main Street: Women’s Entrepreneurship” series, another interesting finding was that mentor-pupil gender pairing had little impact on student satisfaction. In nearly all scenarios, at least three-quarters of entrepreneurs reported that their mentors offered them relevant advice, nearly 80% saying they found their mentors to be helpful, and nearly 90% asserting that their mentors treated them with respect. In a statement, Yancey also noted some delighted astonishment at these findings, saying, ” 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.”

Overall these latest numbers from SCORE quantify an effect many likely already knew to be true. Still it is interesting to see just how much of a difference having a business mentor can make when it comes to the success of an entrepreneur. For more information on SCORE’s services and mentorship network, you can visit them online.


Also published on Medium.

Comments

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Author

Jonathan Dyer

I'm a small town guy living in Los Angeles looking to make solid financial decisions. I write for a number of finance websites, including HuffingtonPost and Business2Community. I founded DyerNews.com in 2015 to focus on personal finance and the emerging FinTech markets.

Other Articles by Jonathan Dyer

Has Bitcoin Found its New Floor?

With Bitcoin's recent stable streak rolling on, could the cryptocurrency have found its floor? That's the question CCN explores in a post that lays out a compelling argument as to why the coin is unlikely to fall below $6,000 — at least not for very long. This comes as Bitcoin...

Gas Prices Fall Slightly as Potentially Volatile Autumn Looms

This week the national average gas price  fell slightly — but that doesn't tell the story of what's shaping up to an interesting time for the oil market. First, according to GasBuddy data, the average gas price now sits at $2.88 a gallon, down 2.6 cents from last week. Meanwhile...

OnDeck Spinoff Company to Create FinTech Lending Solutions for Banks

This week FinTech lender OnDeck announced that it was spinning off a new company that will bring online small business lending solutions to banks. Known as ODX, the software as a service (or "SaaS") operation will partner with institutions in order to offer their customers small business loans. This includes allowing the...