White paper on entrepreneurial mentoring

Key elements in the design of an entrepreneurial mentoring programmeStéphanie MITRANO, transition designer, merkapt

Executive summary

Entrepreneurial mentoring is an efficient form of support from experienced entrepreneurs for

novice entrepreneurs, which complements other practices used by incubators and other organisations supporting entrepreneurship. In order to implement such a programme, it is

necessary to understand the key success factors of a mentoring relationship such as the mentors and mentees’ profiles and the inter-personal and professional fit between the members of the

dyads. Organisations initiating an entrepreneurial mentoring programme can foster these success factors by implementing a few key actions such as the creation and coordination of a network of

entrepreneurs around shared values of solidarity, sharing and personal development; the training and preparation of mentors and mentees - you don’t become a mentor just because you are

experienced; and the coordination of the dyad’s matching. Designing a mentoring programme needs to follow a few important rules which are presented in this white paper.

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merkapt innovation copilots, 2013 1/11

Why write a white paper

Merkapt is an innovation co-pilot agency. We design and implement successful innovation

strategies for market segments that may seem diametrically opposed to the neophyte: from networks of startups to major international technology groups1.

In practice, these two segments share essentially the same problem facing innovation: there is no innovation without risk, and taking risks is not easy to organise. And in both cases, we hence

propose a spectrum of services to gather the specific effective conditions in order to build quite risky innovations, so they have a chance to change the markets in which our customers operate.

The keywords are: business model innovation, incubation, excubation, intrapreneurship, transition design, executive coaching and mentoring.

Once that is said, some probably may still maintain a little outdated image of consulting agencies. Since 2007, date of creation of the agency, it seemed to be particularly complicated to be outdated

while working in the field of innovation and risk. As a result, we share our experience as often as possible. It is a fundamental principle in any agile business wishing to progress in his technical and

operational control. How can we not embrace it?

You will find in this short document the key points on which we base much of our work related to

the design of mentoring programs in networks of innovative entrepreneurs. This white paper is under a creative commons license, encouraging you to disseminate and share in a few simple

rules of etiquette2.

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1 Accenture, Airbus, Allianz, BP, Caisse d’Epargne, Caisse des Dépôts, CEA, CMA CGM, EADS, ERDF, Gemalto, Pfizer...

2 Identical reproduction, no commercial use, and attribution of the work to its author.

What is entrepreneurial mentoring?

Entrepreneurs are a key driver of wealth creation of our modern economies. It is hardly surprising

that many entrepreneurship support agencies are considered essential for a successful economic development.

The risk of failure being three times higher for companies less than five years old, most support organisations direct their effort in the initial stages of project creation and are looking, if not to

cancel, at least to minimise its specific risks: financial, human and commercial. These agencies often constituted into networks, can be training or guidance organisations, support structures,

public agencies providing support in the form of goods or services, information, networking and various other services. These networks of entrepreneurship sharing and learning may be formed

by informal communities of people or by formal vocational structures. The main challenge of these forms of support is unique. It lies in the development of critical reflexivity of the entrepreneur rather

than increasing the knowledge base: support structures favour the internalization of knowledge, ability to improvise and empowerment of the leader. Among the specific arrangements for

accompanying adult development, we find counselling, coaching, training and mentoring. All these forms of support are designed to help a person in his personal and professional development

through the transmission of knowledge, experience, know-how and skills.

Since the 90’s, several governments and government agencies have been using entrepreneurial

mentoring programs, in parallel with other conventional forms of support for entrepreneurs such as loans at lower interest rates, targeted sector subsidies, training programs, incubation cells or

networking.

Mentoring is a form of support that helps mentees to find

meaning while remaining in an experiential mode of learning. In his activity, the mentor is defined as an

experienced person who gives his time, with no relation of interest, shares his experience and offers a space for

reflection in order to facilitate the transition of a novice towards performance in his new role.

We understand that this method of support for the entrepreneur is of high specificity in that it juxtaposes a voluntary not-for-profit activity to the profit-oriented interests of the entrepreneur-

mentee, and those of the collective economy. Most other methods of support are organised, punctual and often carried out by paid professionals. In addition, mentoring being an holistic

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Entrepreneurial mentoring is a voluntary support for novice entrepreneur by an experienced entrepreneur.

approach to supporting a person and his entrepreneurial project on a extended period of time, it is

clearly distinguishable from a consulting intervention, or individual and collective training, which have different objectives (often purely professional) and are conducted with a short period of time.

We also need to distinguish clearly mentoring from coaching which can be done over long periods, but only aims to improve the efficacy of the coachee regardless of the project.

Has mentoring a real impact on an entrepreneur’s success?

Entrepreneurial mentoring programs can be implemented in incubators or organisations developing, encouraging and supporting entrepreneurship. These programs complement other

novice entrepreneurs’ support practices in the process of starting or taking over a business. Mentoring provides a neo-entrepreneur with the experience of an entrepreneur who has already

lived the creation, growth or takeover of a company. Knowing its challenges, and pitfalls, he can share the keys to accelerate the process which can be complex and stressful. In addition, the

mentor has no interest in the mentee's business so he can provide a neutral and benevolent help to the mentee who feels hence less lonely in his decision-making process and may also confront

ideas, take a step back and consider his entrepreneurial project as a whole.

Support organisations often provide expert advice or

coaching. Mentoring is not a substitute for such advice, but provides a more long term and holistic support.

Many governmental and non-profit organisations aiming to develop entrepreneurship have implemented such mentoring

programs: business incubator Créativa at Agroparc Avignon, Le Camping start-up accelerator in Paris, Chamber of Commerce and Industry of Paris with the

Institute of Entrepreneurial Mentoring, Réseau Entreprendre, Moovjee (Movement for Youth and Student Entrepreneurs), France Initiatives etc.

These support organisations !nd that the survival rate of mentored businesses is much higher than the French national average.

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Why would an experienced entrepreneur give his time?

Mentors must remain volunteers in order to create a trusting relationship devoid of any interest with

the mentee. This relationship allows for an unbiased neutrality in their discussions, mentee’s safe self-disclosure, and long-term support. The question that remains is: why would an experienced

entrepreneur give his time, energy and experience, and share his network with no financial return? It is interesting here to take a look at the mentor’s motivations.

Through my research, my consulting work, mentoring programmes diagnostics and interviews with mentors, I was able to identify the following reasons:

✓ Altruistic desire to help another, the satisfaction to feel useful and contribute to the economic

development of the territory;

✓ The intellectual enrichment to exchange with younger entrepreneurs going through

new experiences, to learn about new technologies, or new issues pertaining to the sector, a generation;

✓ Recognition of the mentor status, pride to continue to contribute and generativity - the passing of his knowledge to the new generation of entrepreneur;

✓ Personal development: through the practice of mentoring, the mentor can develop new skills that can be useful in his own business and managerial practice.

The 4 success factors of entrepreneurial mentoring

For a mentoring relationship to be effective - satisfactory to both parties, enabling learning and

helping to achieve goals for the novice entrepreneur (the mentee ) and his mentor - four key ingredients must be gathered:

1- Credible and engaged mentors with relational competencies.

It is preferable that the mentor is an entrepreneur himself and has had one or more successful entrepreneurial experiences, which would confer him some credibility in the mentee’s eyes. In

addition, this approach being voluntary, the mentor must commit to the mentoring process which

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Experienced entrepreneurs can be motivated to become mentors by altruism...

can last from six months to three years depending on the programme. This commitment must be

voluntary and informed, mentors are usually motivated by altruistic values or willingness to help (sharing knowledge, enabling growth, giving feedback), by a desire of intellectual enrichment and

personal development and sometimes by a need for recognition.

And finally, to be effective mentors should possess certain interpersonal skills such as listening

skills, empathy, and adopt a Socratic style (Socratic questioning) to encourage and facilitate discussions with the mentee. Overall, the mentor entrepreneurs must certainly have experience in

entrepreneurship, but it is not enough to effectively exercise his mentor activity: his commitment and style of intervention (detailed in Section 4) are key.

2- Engaged mentees who have relational competencies and need support.

The mentee must engage voluntarily in the process and recognise the need for support in order to be open to the accompaniment of the mentor. In addition, he must possess - or be willing to

develop - interpersonal skills (listening, giving and receiving feedback, and reflecting upon the mentor’s experiences and advice) which facilitate the relationship. Openness or the mentee’s level

of "self-disclosure" is essential in the mentoring relationship, it makes it possible for the mentor to better understand not only the issues of the mentee’s project but also the individual himself, his

motivations, values, character, allowing it to better adapt his questioning, advice and discussions with him.

To these characteristics, we can add the age and experience level of the mentee in entrepreneurship. For if we have so far spoken of novice-entrepreneurs in a broad sense, some

programmes accompany young, inexperienced novices, or buyers who have already had one or more careers. If in any case, the lack of entrepreneurial experience appears similar, it should be

emphasised that the needs of these profiles are quite different. This indicates a need for a variety of suitable mentors, with different experiences, background and styles of mentoring.

3- Dyad’s interpersonal and professional !t.

The relationship is based on duration, trust and self-disclosure, compatibility in human terms is essential. In addition, for the relationship to be effective - the experience is beneficial to both

mentor and mentee - there must be professional compatibility: a differential experience in entrepreneurship in the same sector - while avoiding the potential risks of competition - or in

different sectors - promoting the overall project rather than the business of the mentee.

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Insofar as the mentoring relationship is first and foremost an interpersonal relationship, it involves

some elements widely described in terms of human relations. The human factor is ambivalent and it is often described as an inexplicable feeling, personal chemistry or personal fit. The crucial need

for frequent and regular face-to-face meetings increases even more the importance of the human factor and a positive feeling. But the mentoring relationship also requires an element of efficiency.

The mentoring relationship has a clear goal: to help an entrepreneur to develop its role and expand his business. So that the relationship is seen as

effective and useful, there must be compatibility between the mentee’s needs and the mentor’s style, knowledge and

experience. The mentor must also perceive the potential mentee to decide whether his contribution as a mentor is

worth it. Conversely, the mentee needs to anticipate if the mentor’s qualifications and experience will be beneficial to

him.

4- An appropriate style of mentoring

Interpersonal skills are very important for a mentor. Indeed, the most beneficial mentoring style for

the development of the mentee is a Socratic style. The Socratic method is a method of questioning that aims to "give birth to spirit" and that is allowing the mentee to become aware of embedded

knowledge and the emergence of solutions that are unique and not induced by the mentor. This approach is well away from the directive style.

In addition we found during our latest research and a review of best practices that four functions of entrepreneurial mentor were related to positive outcomes. These functions are challenging,

guiding, informing and motivating.

The mentor must challenge the ideas of the mentee to allow him to go further in his thinking. This

confrontation takes place in the context of solving a problem of his entrepreneurial life: fundraising, a decision about strategic direction, management or team building, the choice of partners, etc.

In his function as a guide and always in the context of solving a problem, the mentor shares his suggestions and advice with the mentee. These suggestions are submitted for consideration by the

mentee entrepreneur who must remain autonomous in his decision making.

The mentor can also provide information to the mentee, within the limits of what he knows

personally, to accelerate the process that sometimes takes time for a novice working by trial and

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A mentoring relationship success depends on the human and professional !t between mentor and mentee.

error. The mentor can share information he has already acquired in his own entrepreneurial path

such as how to negotiate a shareholders' agreement, an appeal to the Labour Court, the formalities for export, a conflict with a customer, etc.

The mentor can also encourage and assist the mentee to build self-confidence and self-efficacy, (feeling "capable" in accomplishing specific tasks). He encourages him to continue and not get

discouraged.

These four functions largely meet the needs of a mentee entrepreneur. Indeed, a novice has

inherently limited information due to lack of experience, and it can be difficult to step back vis-à-vis the many critical events a startup may face. In addition, he may get discouraged when adverse

events (unrealized sales or fundraising that fails) or when deadlines to achieve objectives are missed.

What should an organisation initiating a mentoring programme implement?

To promote the three key factors of a successful mentoring relationship, the organization initiating the program can implement three key actions summarized in the figure below:

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1- Creation of a network of entrepreneurs

The creation of a friendly, dynamic and professional network allows:

✓ The attraction mentors with altruistic and personal development values;

✓ Regular exchanges between mentors to share best practices, promote emulation of these good practices,

ethical mentor behaviours and support of their development as a mentor;

✓ The attraction of mentees entrepreneurs engaged in a process of personal and professional development to support their business;

✓ Regular exchanges between mentees to help them manage their mentoring relationship and create a group dynamic hence reducing the entrepreneur’s feeling of isolation.

2- Preparing participants for the mentoring relationship

Participants in a mentoring program can be prepared for the entrepreneurial mentoring relationship so that:

✓ They understand the framework, roles and responsibilities;

✓ They define the objectives and structure of the relationship (frequency and duration);

✓ They are aware of the procedures of "amicable divorce";

✓ They can develop interpersonal skills (receiving feedback, listening, translation, etc.).

✓ The mentors can develop a Socratic style, learn the coaching tools, own a mentor posture, manage dysfunctions, and use techniques to carry out the most effective functions

(challenging, guiding, informing and motivating).

3- Coordination of the matching process

The organisation implementing a mentoring program is responsible for matching the mentoring pairs. The most effective practice is to organise a preliminary meeting between the mentor and

potential mentee without commitment. This promotes mutual discovery to boost confidence. This

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The organisation initiating a mentoring program must primarily create a network of entrepreneurs ...

meeting also promotes the discovery of professional compatibility and therefore the usefulness of

the relationship. Personal and professional compatibility stimulates participants to engage in the relationship as it gives them the first signs of a future mutually beneficial relationship: a person with

whom I feel comfortable to share, and who will be useful to me or for whom I’ll feel useful.

The organisation may also accompany the start of the relationship, by formalising it through the

signing of a code of ethics and an act of commitment. It must, however, inform the participants of the procedure for the withdrawal from the relationship and ensure a safe withdrawal (without

negative consequences for both parties).

4- Supporting actions

Amongst the actions that an organisation can set up, three can be used to support mentoring relationships in order to ensure their effectiveness in the long term:

➡ Monitoring: regular check up with mentors and mentees (without going into the intimacy of the relationship) can identify potential failures and restart the relationship if it loses momentum.

➡ Assessment: It is important to assess whether the relationship is good (it works on the human level), efficient (objectives are achieved) and beneficial (reciprocal learning). This evaluation of the proximal impact (short-term, at the end of the relationship) can improve the support process (selection and matching pairs). Moreover a longer term evaluation can help the organisation to show results for the mentored entrepreneurs and their companies (development of sales, staffing, survival rate, etc.).

➡ Recognition of mentors: it highlight the mentors’ contribution which can meet their need for recognition as well as increase their loyalty to the network of mentors and reinforces the best practices and values of mentoring.

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So what now?Mentoring may well be supported by volunteer mentors, but

design and deployment of support program require good preparation, communication, and some resources to carry it

out so that it can be beneficial for novice entrepreneurs as well as for mentors. Of course, we can assist you in the

design of such a program, but we are also interested in your experience so do not hesitate to contact us.

Contact us:Stéphanie [email protected] twitter : @SMMerkaptweb : www.merkapt.com

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White paper on entrepreneurial mentoring