T H E M E 1
ESOS AND ENTREPRENEURS NEED TRAINING IN VARIOUS BUSINESS AREAS
The contribution hubs currently make to helping entrepreneurs be investment ready Vs how much these contributions to investment readiness matter to an investor ? (% of rating)
The disconnect between investors, ESOs andentrepre- neurs is non-negligible. What role can ESOs play? There is a fundamental disconnect between inves- tors, ESOs and entrepreneurs. We see that ESOs deliverables are far less than investors’ expecta- tions. Only 7% of investors believe that ESOs contribute to helping entrepreneurs be investment ready compared to 65% of investors who say this matters to them. 49% of investors reveal that the biggest disconnect between investors and entre- preneurs is linked to the fact that ‘entrepreneurs are not investment ready’. Focus groups revealed that most ESOs staff do not have enterprise support background, thus are unable to implement quality enterprise support programs, which impacts entrepreneurs readiness for investment. Research revealed that one of the biggest gaps between investors and entrepre- neurs is communication. This disconnect can lead to failed deals. Although entrepreneurs can often speak eloquently about their missions on a high-level, they sometimes lack specificity that investors want. Furthermore, specific vocabulary differs across industries and sectors, meaning that entrepreneurs need to be well-versed in a wide range of languages and terminology, depending on the investors with whom they wish to connect. ESOs are not acquainted with the requirements from investors in order to help the entrepreneurs meet those requirements.
0% 10% 20% 30% 40% 50% 60% 70% 80%
75%
67%
57%
56%
44%
40%
24%
7%
7%
6%
4%
4%
4%
1%
Making a business commercially viable
Having numbers that are realistic and
Having a plan on how to scale the business
Knowing the right target market
Having a proof of concept
Building a great team
Having a good advisory board
Very well
High Important
What do you think is the biggest disconnect between investors and entrepreneurs? (Top 5) (% of rating)
0% 10% 20% 30% 40% 50% 60%
49%
29%
26%
17%
15%
Lack of 360° plan and strategy
Lack of experience & exposure
Lack of awareness and synergy
Different valuation expections
Entrepreneurs are not investment ready
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N E E D S A S S E S S M E N T R E P O R T
Trends and insights from ESOs, entrepreneurs, and investors
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