Why do UK businesses snub mentors – and pay the price?
A recent study by the FSB suggested that as little as 23% of SMEs in the UK engage the services of a mentor or coach to assist them with their business challenges and growth.
This is compared to a 2023 report by SCORE that suggested around 70% of small businesses in the USA actively engage a mentor or coach at some stage of their growth.
This gap is huge. When it comes to small business success, mentorship can be a game-changer.
Why the disparity? Cultural factors and awareness seem to play a big role. In the US, mentorship is ingrained in the entrepreneurial mindset, seen as a sign of ambition rather than weakness. British entrepreneurs, on the other hand, often prefer to “go it alone,” wary of outside advice or reluctant to invest in something perceived as non-essential.
This mindset is damaging.
I remember being sat in front of a board of directors where the company was struggling. Customer service was poor, clients were unhappy and they were struggling to pay their liabilities on a regular basis. They were on a slippery slope and deep down knew it.
Unfortunately the MD allowed his male pride to get the better of him and he suggested he didn’t need to invest (heavily) in my offer of help suggesting he could fix it. He didn’t want to show weakness to the team that he needed help.
In his mind he had the house, the overseas holiday home, the 4×4 car so nothing was broken – he had the lifestyle and rewards.
Three months later, the company was liquidated and he had to tell 100+ people they were out of work.
“How’s your pride feeling now?” A lot worse one would assume.
US businesses that work with a mentor have a survival rate of over 70% beyond five years, while in the UK, where mentorship is less common, as few as 40% survive that long.
Productivity, profitability and mental wellbeing also suffer. A recent report from Sage found that mentored businesses grow revenues twice as fast as non-mentored ones.
A research report by the ABM concluded that over 64% of SMEs that had engaged a mentor had increased revenue and profit and 72% said it had led to an increase in mental health and confidence. The consequences of not engaging a mentor? They’re measurable and stark.
So how can UK small businesses catch up? Here are five quick-start tips to trial mentoring:
- Tap into local networks
Chambers of Commerce and local Enterprise partnerships often run free mentoring schemes (beware – free doesn’t always mean good, these are to get a taster) - Use digital platforms
Join on-line communities like Enterprise Nation or the British Library Business which offer virtual mentoring - Try a Peer Group
Participate in mastermind groups or peer-to-peer forums to get informal mentoring and a flavour of the benefits - Corporate Mentorship
Look for programs from large corporates (often banks) that offer mentoring to small companies and startups to help them raise brand awareness - Government Schemes
Explore initiatives like the Help to Grow: Management program, which pairs SMEs with experienced mentors with only a modest investment
My mission since I started Tendo almost 15 years ago was to change the dial on the heart-breaking statistic that 95% of small businesses ultimately fail. I am getting there, one client at a time.
UK small businesses are missing out on a proven pathway to success, that their US counterparts have. It’s time to shake off the stigma, embrace mentorship, and unlock faster, smarter growth.
Can’t afford to invest? Results suggest you can’t afford not to!
Pride stopping you? Time to swallow your pride and be proud of the results achieved.
It’s about time we caught up with our colleagues from over the pond. What’s really stopping you?
If you are looking for a sounding board to help you challenge the status quo or need help developing a plan to help navigate your next steps proactively, it’s time to chat.
