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How to build a mentoring system for small and medium businesses

ByMeeta Rajivlochan
Jan 05, 2022 09:08 PM IST

Even though these businesses realise that the new world is based on IT, they often find it difficult to access information on digital adoption. The best way to overcome this is to build a robust digital interface for knowledge exchange

At present, India’s information technology-enabled services (ITeS) sector mainly caters to the demands of the foreign market rather than the domestic one. This must change because cutting-edge technology can help small and medium enterprises grow and improve their productivity levels and strengthen the national economy. Artificial intelligence (AI), e-commerce, or better production technologies can all enhance the value of goods produced with the same labour resources.

The problem with mentoring is that scaling up the process is a difficult task, given that it is essentially a one-to-one interaction (Getty Images/iStockphoto) PREMIUM
The problem with mentoring is that scaling up the process is a difficult task, given that it is essentially a one-to-one interaction (Getty Images/iStockphoto)

Small and medium enterprises are aware that digital adoption is essential for growth. But they often fail to take advantage of the digital path due to the lack of adequate and timely information about available options. A recent survey of small and medium businesses (by HP Asia) found that 75% of such companies felt that digital adoption was essential for them. Another 17% thought it was necessary, and 9% thought it was relevant to their businesses.

Even though these businesses realise that the world is changing and the new world is based on IT, they often find it difficult to access information on digital adoption. This is because adopting the right kind of technology in business is much more about the ease of access than the availability of capital. The best way to overcome this challenge is to build a robust digital interface for knowledge exchange. And, this is where counselling/mentoring can play a big role in helping entrepreneurs in deciding how best to improve output per capita.

The problem with mentoring is that scaling up the process is a difficult task, given that it is essentially a one-to-one interaction. However, one way to make such scaling-up possible is to establish an institutional interface for both mentors and those who need counselling (mentees). To set up such a mechanism, the following would be needed: First, a group of experienced people (mentors) willing to spend time to provide the information to mentees. The second is an institutional mechanism to reach out to businesses that need information/guidance and connect them to the mentors. It’s not too difficult to set up such a network of mentors for aspiring entrepreneurs: States, central ministries, and industry associations have information about entrepreneurs. For example, the National Commission of Women collaborates with the India SME Forum to mentor 300 aspiring women entrepreneurs who have completed “Do Your Venture”, conducted by the Indian Institute of Management-Bangalore.

This model will require a database and a digital interface to scale up. A separate portal, which can be accessed by all those who need counselling, could be created. In addition, a call centre could be set up to answer questions from small businesses. Furthermore, information about government programmes and processes, funding mechanisms, technology upgradation needs, digital inclusion methodologies, and AI tools can be made provided. The components of the system could include: A centralised 24x7 call centre to answer queries from small enterprises, guidelines and a dashboard. Guidelines would be needed for call centre operators on how to categorise, and sector-specific questions so that these could be answered.

Once categorised, a dashboard of queries could be put up. Those in charge of the dashboard would route these to mentors and ensure that the question is answered quickly and that the question has been answered to the satisfaction of the person raising the question. Guidelines would be needed for people in charge of the dashboard on moderating the questions and contacting the mentors.

A time limit could also be imposed for questions that require detailed answers. Once data accumulates, a business intelligence tool could mine that data to identify frequent questions, patterns, and systemic deficiencies identified as a result. This information could be sent to the appropriate government agencies for corrective action.

Meeta Rajivlochan is an IAS officer

The views expressed are personal

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