A national mentoring scheme to help start-ups and growing businesses thrive must be business-led with backing from the banking industry, a new report from the Federation of Small Businesses (FSB) has stated.
The FSB is also urging banks to donate investment into the scheme in a bid to help rebuild relationships between small businesses and banking institutions.
Between £10-12bn is spent on government funded business support per year, with only 5% of that going to micro businesses even though they account for 95% of all businesses in the UK.
John Walker, national chairman of the FSB, said: "There are already volunteer mentors working in local communities who would value being recognised for their work. Small business management is complex and requires competent advisors who have had experience in running a successful business. We fully believe that supporting business owners will translate into action the skills appropriate for the business they are running.”
According to the FSB, on average two-thirds of all start-ups will fail in their first year and the forum has called for business mentoring to be business-led not government-led.
Walker added: "It is very important too that if a start-up is receiving mentoring from an established business that it is recognised by the banks and taken into consideration if approached for a loan or overdraft."
The FSB has recommended that a National Mentoring Service be created through the Institute of Enterprise and Entrepreneurs.
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