Small and medium sized enterprises (SMEs) are literally dying of
embarrassment in New Zealand because they are ashamed of seeking help just when
they need it most, warns Ray Schofield, CEO of Business Mentors New Zealand,
the only national, volunteer business mentoring organisation.
Mr Schofield says that many SMEs run into trouble
early in their development but won’t ask for the help that could see them
through a rough patch.
He explains: `There are lots of challenges in those
first few months and early years of setting up a business but the New Zealand
stoical attitude means that many struggling enterprises fail to seek help in
time. The double whammy at 18 months when provisional tax really kicks in is
often the final straw. But if only owner operators got themselves a business
mentor earlier, more of them would survive. Our volunteer mentors, who provide
a free service for up to two years, often arrive just in the nick of time.’
Business Mentors Patron Partner, Statistics New
Zealand: NZ Business Demography Statistics for 2012 reports that there were
only 40,690 new enterprises set up in
New Zealand, a fall of 11.2 per
cent on the previous year. This was the lowest birth rate since comparable data was first collected in
2000 and the third year in a row that more businesses have closed than opened.
There were 469,120
enterprises in total, down
by 0.8 per cent on the previous year.
Lisa Ford, Business Mentors National Agency Manager
told a meeting of volunteer mentors hosted by Auckland Tourism, Events and
Economic Development at North Harbour Stadium this week: `Time after time our
coordinators tell us they call up a new company owner to arrange mentoring only
to find that they know nothing about it. That’s because their partner has
called us in because they can see the business is struggling. They are simply
too ashamed to ask for help themselves, yet some of the most successful
companies in the country have got where they are today with the help of a
business mentor. It’s something they really should be proud of doing. None of
us knows everything and it’s the smart guys who know when to pull in an expert
advisor.’
Business ‘deaths’
have outnumbered ‘births’ for the past three years meaning the total number of
enterprises has been falling since 2009 with 30,000 fewer businesses set up last
year than in 2004. Mentors report that finding the right support, financial as
well as expertise, advice and tools to put a new venture on a sustainable
footing are vital components to success.
Business Mentors New Zealand
helps around 250 businesses find a mentor every month and has assisted more
than 65,000 small to medium-size enterprise owners in New Zealand in the last 22
years.
Business Mentors
provides access to over 1,900 volunteer mentors (who give their experience,
skill and knowledge free of charge). The $150 registration fee allows mentoring
for up to two years.
For more information please visit www.businessmentors.org.nz
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