Business mentoring linked to growth but millions of UK SMEs missing out

Business mentoring is helping UK companies increase revenues, grow their workforces and build leadership confidence, but millions of small and medium-sized enterprises (SMEs) are still missing out on support, according to the National Business Mentoring Council (NBMC).

According to NBMC’s UK Business Mentoring: The State of the Nation report, 65 per cent of business leaders believe mentoring has directly increased revenues, while 63 per cent report growth in employee headcount as a result of mentoring programmes.

More than half (53 per cent) of business owners with a mentor expect to recruit additional staff in the next year, compared with 36 per cent of those without mentoring support.

However, despite the reported benefits, around 840,000 businesses currently access mentoring programmes, compared with an estimated 5.5 million SMEs operating across the UK.

The findings raise questions about how effectively smaller organisations are supporting business owners and leaders, particularly as they navigate economic pressures, workforce challenges and the demands of managing growing teams.

Published on 27 October to mark National Mentoring Day, maps 241 active mentoring initiatives across 227 organisations, highlighting both the support available and the barriers preventing businesses from accessing it.

Beyond financial performance, the report identifies confidence, decision-making and access to experienced guidance as important benefits of mentoring.

Business owners receiving mentoring support report gaining perspective when facing difficult decisions, accessing professional networks and having someone to turn to during challenging periods.

These findings also have implications for workplace wellbeing and human sustainability. Leadership capability, access to support and the ability to manage organisational pressures are important considerations in creating healthier, more sustainable working environments.

For SMEs, where owners and senior leaders often carry responsibility for business performance alongside people management, mentoring could provide an additional source of support in navigating workforce challenges and developing management capability.

The report identifies mentoring provision for businesses at different stages of development, from aspiring entrepreneurs and start-ups to established SMEs looking to expand.

Around 84 per cent of the programmes mapped offer mentoring free at the point of use, with support delivered through universities, charities, industry associations, commercial organisations, corporate businesses and public bodies.

However, the availability of programmes does not necessarily translate into accessibility.

The NBMC identifies difficulties in finding mentors with relevant experience and expertise as an ongoing challenge, suggesting that better connections between businesses and existing mentoring services could help increase participation.

The banking industry, through UK Finance’s membership of the council, has relaunched Mentorsme, a platform designed to help businesses identify mentoring organisations across the UK.

Irene Graham OBE, CEO of the ScaleUp Institute, said: “This inaugural report explores the UK business mentoring landscape and highlights the opportunities, benefits, and impact of business mentoring. It is clear that the UK has a diverse range of organisations offering business mentoring across the country, and businesses with a mentor value the real difference such support provides. Mentoring gives business leaders an opportunity to draw on experience and provide a sounding board for challenges faced. The key now is to make sure it is as easy as possible for businesses to find the right mentor,  with the right credentials, to support their needs.”

Georgina Waite, CEO of the Association of Business Mentors, added: “What is abundantly clear from this report is that business mentorship can accelerate growth in UK business and it’s important that it becomes more accessible to a larger pool of UK firms. By mapping the programmes available across the UK, this report gives us a clearer picture of the support on offer and an opportunity to help more businesses connect with the right mentor. The challenge is helping business leaders find someone with the right experience and expertise for their particular needs.”

The NBMC plans to use the findings to shape its work in 2027, focusing on improving awareness of mentoring provision, strengthening professional standards and creating clearer pathways into mentoring for young people, diverse founders and established businesses.

For employers and people leaders, the report adds to the discussion around leadership development as part of a wider approach to organisational health.

While the research focuses on business mentoring rather than employee wellbeing outcomes, it highlights the potential value of providing leaders with access to guidance, professional networks and support when managing business and workforce pressures.