Features & Analysis
Business mentoring: helping to unlock enterprise talent
With one in five of Europe’s youth now out of work, some of the region’s brightest and best are taking control of their futures by setting up on their own.
Naresh Shah, London, UK
But youth and energy are not, of themselves, any guarantee of success, with data from the Prince’s Trust (a UK charitable organisation dedicated to supporting young entrepreneurs) indicating only 56% of new youth start-ups are still trading three years later.
As a long-standing business mentor for the Prince’s Trust, I believe mentors have a crucial role to play in securing the futures of the next generation of entrepreneurs.
Youth unemployment: the real price of the economic crisis
One of the cruellest impacts of the current financial crisis has been the effect on the population least responsible for it. As youth unemployment reaches 22% across the EU27 (the 27 member states that make up the European Union) – hitting 52% in Greece and Spain – governments in all member states are waking up to the long-term consequences of missed opportunities, lost skills, and an ever more disengaged generation.
Unemployment across the EU27 has doubled since 2008. Around 4.2 million young people aged 15 to 24 (roughly 16%) were unemployed in late 2008; by March 2012 this had risen to 5.5 million – an increase of more than 30%.
Supporting young entrepreneurs
As the problem becomes more difficult, employers are taking the lead in encouraging support for young entrepreneurs. In the UK, the National Youth Enterprise Working Group (a consortium of the country’s most dynamic businesses, spearheaded by Virgin Group) has been instrumental in persuading the UK government to create a £10 million nationwide pilot loans programme. In France, the 2011 Youth Entrepreneur Summit (held during France’s hosting of the G20) received support from the cream of French blue-chip companies.
In my role as a business mentor to the Prince’s Trust I have seen how domestic governments and multilateral agencies are increasingly recognising the vital role that one-to-one business mentoring can play in securing the futures of many young start-ups. The governmentbacked Mentorsme programme is the UK’s first online gateway for SMEs seeking mentoring services, and the European Commission’s Erasmus for Young Entrepreneurs’ programme aims to match best-in-class emerging businesses with more experienced peers across the EU.
What does a mentor bring to a business?
The establishment of the UK’s Mentorsme initiative in 2011 suggests mentoring is finally getting the recognition it deserves. But what does a business mentor bring to a business?
Business mentors have always been central to the activities of the Prince’s Trust and its global affiliate, Youth Business International. The role of a mentor formally covers performance reviews (what could be done better, how to get more clients and coverage, sales and marketing issues, costs and benefits of various options), as well as more basic help with reporting and compliance.
Essentially though, the real value you can impart as a mentor is the fact you’ve been there before: having gained a degree of business experience yourself, you understand what’s important and what’s not.
Clearly, there is an educational element – it’s easy to forget how daunting it can be setting up a business for the first time, and as a professional advisor I have been able to help two promising entrepreneurs optimise their tax efficiency and business planning in a way they might not otherwise have done. But I would say the most essential task I faced was getting the mentee to do what is needed by way of repeated reminders.
Managed effectively, the benefits to the mentee are obvious – even where a business doesn’t succeed (and almost half don’t). Quite apart from the less tangible benefits of resilience, tenacity, and self-discipline, the practical experiences of business planning, regulatory compliance and business development will be invaluable for those entrepreneurs prepared to try again.
But there are, also, distinct benefits for the mentor. The foremost and overriding reward, of course, is personal – knowing your experience is helping a young person drive their own future. But today’s start-up could be tomorrow’s roaring success, and young entrepreneurs talk to each other. If you’re good, and if your advice is effective, other growing businesses will hear about it. This is the sort of promotion money can’t buy.
Case study: Philip Blythman Photography Limited
From the minute I met Philip it was obvious he was going places. He had the energy, and he had the talent – and, unusually for someone so young, he had a clear idea of where he wanted to go. He knew what his strengths were, and was confident that, if he found the right niche, he could establish himself professionally.
We met regularly to review the financial position and major events over the preceding month – and, more importantly, to take a long hard look at his forward order book to consider how we could use various marketing and PR initiatives to fill any free days.
This mainly involved reviewing and updating the website and portfolio to make sure these were completely consistent with market trends and, more importantly, editors’ expectations, as well as making contact with photo agencies and other sources.
Now a regular freelancer for Marks and Spencer, Littlewoods and a range of international fashion and travel publications, he has certainly achieved that. But, in one sense, I’m more proud of the fact that his business (and, specifically, his limited company) is now secure. Artistic integrity is one thing, but it doesn’t pay the bills. I like to think that, in some small way at least, I helped him through the legal and regulatory essentials that, let’s face it, none of us really understand until we have to.
But working through the benefits of limited company status versus sole trader or self-employment was, in one sense, quite straightforward; and Philip had the commercial nous to grasp key commercial concepts quickly.
As a long-standing business mentor for the Prince’s Trust, I believe mentors have a crucial role to play in securing the futures of the next generation of entrepreneurs.
Youth unemployment: the real price of the economic crisis
One of the cruellest impacts of the current financial crisis has been the effect on the population least responsible for it. As youth unemployment reaches 22% across the EU27 (the 27 member states that make up the European Union) – hitting 52% in Greece and Spain – governments in all member states are waking up to the long-term consequences of missed opportunities, lost skills, and an ever more disengaged generation.
Unemployment across the EU27 has doubled since 2008. Around 4.2 million young people aged 15 to 24 (roughly 16%) were unemployed in late 2008; by March 2012 this had risen to 5.5 million – an increase of more than 30%.
Supporting young entrepreneurs
As the problem becomes more difficult, employers are taking the lead in encouraging support for young entrepreneurs. In the UK, the National Youth Enterprise Working Group (a consortium of the country’s most dynamic businesses, spearheaded by Virgin Group) has been instrumental in persuading the UK government to create a £10 million nationwide pilot loans programme. In France, the 2011 Youth Entrepreneur Summit (held during France’s hosting of the G20) received support from the cream of French blue-chip companies.
In my role as a business mentor to the Prince’s Trust I have seen how domestic governments and multilateral agencies are increasingly recognising the vital role that one-to-one business mentoring can play in securing the futures of many young start-ups. The governmentbacked Mentorsme programme is the UK’s first online gateway for SMEs seeking mentoring services, and the European Commission’s Erasmus for Young Entrepreneurs’ programme aims to match best-in-class emerging businesses with more experienced peers across the EU.
What does a mentor bring to a business?
The establishment of the UK’s Mentorsme initiative in 2011 suggests mentoring is finally getting the recognition it deserves. But what does a business mentor bring to a business?
Business mentors have always been central to the activities of the Prince’s Trust and its global affiliate, Youth Business International. The role of a mentor formally covers performance reviews (what could be done better, how to get more clients and coverage, sales and marketing issues, costs and benefits of various options), as well as more basic help with reporting and compliance.
Essentially though, the real value you can impart as a mentor is the fact you’ve been there before: having gained a degree of business experience yourself, you understand what’s important and what’s not.
Clearly, there is an educational element – it’s easy to forget how daunting it can be setting up a business for the first time, and as a professional advisor I have been able to help two promising entrepreneurs optimise their tax efficiency and business planning in a way they might not otherwise have done. But I would say the most essential task I faced was getting the mentee to do what is needed by way of repeated reminders.
Managed effectively, the benefits to the mentee are obvious – even where a business doesn’t succeed (and almost half don’t). Quite apart from the less tangible benefits of resilience, tenacity, and self-discipline, the practical experiences of business planning, regulatory compliance and business development will be invaluable for those entrepreneurs prepared to try again.
But there are, also, distinct benefits for the mentor. The foremost and overriding reward, of course, is personal – knowing your experience is helping a young person drive their own future. But today’s start-up could be tomorrow’s roaring success, and young entrepreneurs talk to each other. If you’re good, and if your advice is effective, other growing businesses will hear about it. This is the sort of promotion money can’t buy.
Case study: Philip Blythman Photography Limited
From the minute I met Philip it was obvious he was going places. He had the energy, and he had the talent – and, unusually for someone so young, he had a clear idea of where he wanted to go. He knew what his strengths were, and was confident that, if he found the right niche, he could establish himself professionally.
We met regularly to review the financial position and major events over the preceding month – and, more importantly, to take a long hard look at his forward order book to consider how we could use various marketing and PR initiatives to fill any free days.
This mainly involved reviewing and updating the website and portfolio to make sure these were completely consistent with market trends and, more importantly, editors’ expectations, as well as making contact with photo agencies and other sources.
Now a regular freelancer for Marks and Spencer, Littlewoods and a range of international fashion and travel publications, he has certainly achieved that. But, in one sense, I’m more proud of the fact that his business (and, specifically, his limited company) is now secure. Artistic integrity is one thing, but it doesn’t pay the bills. I like to think that, in some small way at least, I helped him through the legal and regulatory essentials that, let’s face it, none of us really understand until we have to.
But working through the benefits of limited company status versus sole trader or self-employment was, in one sense, quite straightforward; and Philip had the commercial nous to grasp key commercial concepts quickly.