Business Mentoring Demand High As Economy Struggles

Media Release

26th July 2011

Business Mentoring Demand High As Economy Struggles To Recover

According to Business Mentors New Zealand (BMNZ), the nation’s only not-for-profit mentoring organisation, demand from SMEs for business mentoring is high with many older companies seeking help for the first time.

Reviewing figures for the first quarter of the financial year, BMNZ chief executive Ray Schofield explains: `We are seeing increases in demand for our services in many parts of the country well up on last year. There is a lot of distress out there among small businesses, especially in Canterbury and the Pike River area. Older businesses are now being affected, some who have been trading for 20 years or more who are being affected by cash flow and collection difficulties and the domino effect of economic disturbances which are running right through the SME sector. Small business just doesn’t have the resources to carry that sort of burden indefinitely. It can be a vicious circle as jobs drop off it gets harder for the remaining companies.

`Our mentors are reporting a lot of people in difficulty who really need someone to talk to so that they can look at their options. Winter can be hard for trade and is our time of highest use when people contact us. In turn we are trying to support our mentors many of whom have been affected themselves and yet still give support to others. The Government has put in extra support with 20 more field advisors and we have had some much needed support from organisations such as TRN and new sponsors like Sovereign Insurance and IAG.’

Both mentoring sessions and client satisfaction with the BMNZ service have hit an all time high. At the last survey overall satisfaction exceeded the benchmark with a new record of 82%. On top of that, 92.4% of clients would be willing to recommend the service to others.

Mentor visits have also increased significantly, with 14% of all mentors meeting with their clients on more than six different occasions, a strong indication that SMEs are requiring more assistance during these tougher economic times.

Business Mentors provides access to 1,700 volunteer mentors (who provide their experience, skill and knowledge free of charge). The focus of the organisation is on developing capability, profitability, and employment generation. Since the organisation was established in 1991, Business Mentors has assisted over 57,000 small to medium businesses. It is funded largely by patrons from the private sector, with additional support from New Zealand Trade and Enterprise. It provides a mentoring service to any businesses that are trading with evidence of accounts.

There is no limit on the amount of mentoring sessions. The term of the relationship with a mentor depends on the objectives and goals both client and mentor jointly agrees upon. They can also contact their co-ordinator at any point for further assistance

For more information on Business Mentors New Zealand, visit www.businessmentors.org.nz

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