New venture support: an analysis of mentoring support for new and early stage entrepreneurs

Abstract

There has been little research on the processes of providing support to new firm entrepreneurs, and little evaluation of the provision of support to existing small firm entrepreneurs through advice, counselling or consultancy. Despite this lack of research, support for new firm entrepreneurs has been largely withdrawn in England and Wales with the focus of support, through Personal Business Advisers (PBAs), targeted at existing small firm entrepreneurs who employ more than 20 people and have the potential for growth. There are theoretical arguments that suggest support for new start entrepreneurs should be provided on a mentoring basis. If this is provided selectively, then this should have an impact on the management ability and confidence of such new firm starts. This paper reports the results of interviews with new firm entrepreneurs engaged in such a mentoring relationship. The research, undertaken in Scotland, suggests that such a relationship is beneficial. Given the high failure rates of new firm formation, such support could have wider application and benefits. It is suggested that, for certain regions, provision of new firm support can yield positive and worthwhile returns to public sector investment, particularly in a region such as the West of Scotland, characterised by a need to diversify its economy and raise the formation rate of new start small firms and entrepreneurs.

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