Evaluation of the Mentoring program for small and medium

businesses in Israel

State of Israel

Ministry of Industry, Trade and Labor

The Mentoring program

•Objective : Profitability , revenues, management skills• Population : Up to 100 workers in the fields of industrial production, commerce and business services. Small – up to 5 workers. Medium – 5 to 100 workers.• Program : Up to 20 consulting hours for small business. Up to 150 for medium business. subsidizing 75% of the consulting hour cost (aprox. 65$).

9841180

3820

15331408

3956

353424

1012 962

28582944

0

500

1000

1500

2000

2500

3000

3500

4000

4500

2004 2005 2006 2007

Total program

medium

small

49

810$

2325$

15

240$

700$

Hours Paid by the bus.

Paid by the min.

Hours Paid by the bus.

Paid by the bus.

Medium Small

The Businesses - Industry

 Total BUS SecTotal MentoringMediumSmall

Total Bus.100%100%100%100%

Ind. production13.315.328.112.3

construction13.82.122.1

Business svcs19.719.71221.5

Trade18.521.22919.3

Agriculture3.62.642.3

Transportation & Communicati

on8.42.13.21.8

Education1.39.76.910.4

Community SRV.5.17.52.78.6

Accommodation 6.85.76.25.6

 Financial SRV.4.60.40.50.3

Health and Welfare 4.913.85.415.8

The Businesses – Number of Employees

No. of emp.

TotalMediumSmall

 100%100%100%

141.30.150.7

220.70.425.4

3 to 419.20.123.5

5 to 10

11.158.30.3

11+ 7.741.10

Average

5.315.52.6

The Businesses – Business Life Span

Age (years)TotalMediumSmall

 100%100%100%

10.30.80.2

294.110.1

316.57.518.5

4 to 528.820.330.7

6 to 1023.428.722.2

11 and over

2238.518.3

Average Age 8.812.87.7

Motivation and Main Scope of the Mentoring Program

Growth 8.6%

Difficulties 9.7%

Efficiency 48.7%

Founding 26.5%

Marketing and Ad. 1.7%

Other 3.1%

100%100

%

Marketing and Adv.24.3%

Operation7.1%

Finance and Cash-flow19.3%Reorganization

13.9%

Menpower5.2%

Management 18.4%

Development and Strategy11.7%

Motivation Main Scope

Evaluation Program

•Evaluation Methodology

•Collected Parameters (development, performance, management skills)

•Efficiency Criteria

•Survey’s Population

•Sample

•Data Collection

•Questionnaire

Profitability – Mentoring and Control GroupsMentoring group

Before the program

After the programDifference

Profitable37.671.734.1

Brake-even42.217.924.3-

Loss20.210.49.8-

Control groups

Inside control groupOutside control group

BeforeAfterDifferenceBeforeAfterDifference

Profitable56.981.624.763.967.94

Brake-even

30.911.319.6-26.123.32.8-

Loss12.27.15.1-108.81.2-

Profitability – Added Value

DifferenceDifferenceDifferenceAdded ValuedAdded Valued

MentoringControl In.Control Ot.Control In.Control Ot.

Profitable34.124.74

9.430.1

Brake-even24.3-19.6--2.8

-4.7-21.5

Loss9.8-5.1--1.2

-4.7-8.6

Income – Added Value

Added ValuedAdded Valued

MentoringControl In.Control Ot.Control In.Control Ot.

Increase 64.75061.4

14.73.3

No change 24.536.823.7

-12.30.8

Decrease10.813.214.9

-2.4-4.1

Employment – Added Value

Added ValuedAdded Valued

MentoringControl In.Control Ot.Control In.Control Ot.

Increase 32.12838.4

4.1-6.3

No change 61.963.250.7

-1.311.2

Decrease68.810.9

-2.8-4.9

Management Skills – Added Value

DifferenceDifferenceDifferenceAdded ValuedAdded Valued

MentoringControl In.Control Ot.Control In.Control Ot.

Cash flow68.752.552.216.216.5

Debt to bank and sup.

33.122.614.810.518.3

Number of costumers

67.84556.522.811.3

Number of geo. Markets

24.318.334.6610.3-

Range of products and services

38.323.944.514.46.2-

Overall business condition

7349.347.623.725.4

Marketing59.930.340.729.619.2

Management68.634.538.534.130.1

Average55.436.941.218.514.3

Management Skills – Internal Added Value

ImprovedMentoring EffectInternal Added Value

MentoringMentoringMentoring

Cash flow68.747.332.5

Debt to bank and sup.33.126.08.6

Number of costumers67.828.719.5

Number of geo. Markets24.317.34.2

Range of products and services38.328.310.8

Overall business condition73.039.829.1

Marketing59.943.726.2

Management68.654.037.0

Average55.434.419.1

Satisfaction of the Businesses

ExcellentGoodAverage & less than average

Professional level of the Mentor

65.113.321.5

Commitment of the Mentor71.411.916.8

Communication skills of the Mentor

69.611.219.2

Overall satisfaction from the Mentoring program

58.713.328.0

Evaluation Program – Problems and Points for discussion

•Distance from the data

•Lack of numerical data

•Survivability