Exploring the Need and Value of Mentorship for Micro-Entrepreneurs in Northern Karnataka Region

Abstract

Studies show that mentors provide strategic inputs, technical knowledge and motivation to entrepreneurs to take the next big step. While there is documented evidence of such mentorship impacting business growth and increasing profits for conventional start-ups, its value for micro-entrepreneurs in India has not been extensively studied. Grassroots micro-entrepreneurs (investment less than 10 lakhs) primarily seek credit and marketing support with little or no mentoring. We found that such micro-entrepreneurs tend to have an appetite for impactful solutions that solve near-term needs rather than longer-term sustainable and scalable business strategies. In this paper, we explore existing perspectives on mentorship, its relevance in local settings and response from micro-entrepreneurs about personalized guidance. We discuss if and how social learning can impact local micro-entrepreneurs having no formal business education. We observed that the conventional approach of one-on-one mentoring does not lead to expected benefits. Instead, our pilot in Northern Karnataka showed that a tiered mentoring model involving community mentors, sectoral experts and successful businesspersons in different capacities and different styles of engagements creates a more effective ecosystem for both personal and business development. This tiered mentorship system provides diversity and novelty in each session, which is highly valued by micro-entrepreneurs.