To complete his master's degree in Business Administration at the University of Twente, Gijs Kroeze investigated how small business owners are coached by coaches and consultants. He did this research in collaboration with Summiteers. This study looked at which coaching styles coaches use to specific learning goals of entrepreneurs, what the influences are of the backgrounds of both the coach and entrepreneur, and what roles investors play during coaching processes. While writing his thesis, Gijs interviewed various entrepreneurs and their coach (often a consultant). In addition, he spoke to a number of investors.

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Relationship between entrepreneur and coach

Before a process can even start, it is important to consider how the relationship between entrepreneur and coach is. Gijs: “The origin of the relationship between entrepreneur and coach plays a role in such a project. When people know each other, a personal relationship is already present. If you don't know each other well yet, you must of course get used to each other first. It is important that both invest in building this relationship, because the research shows that this has an effect on the growth of entrepreneurial coachability. However, the personal relationship that has arisen can also have a negative impact on the coaching process, if both cannot be honest with each other because it can damage the personal relationship.”

Hiring a consultant feels more comfortable than hiring a coach for some people. Gijs: “Sometimes that even has something cool: I've put a consultant on it. A coach tells some people that they need help and they would rather not show that. Tip for the entrepreneur who recognizes this: hire a consultant to coach you. Tip for the coach: it's okay to sometimes be called a consultant.”

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Success criteria

At the beginning of the process, entrepreneur and coach must extensively consider the “success criteria”: what does the entrepreneur want to learn and how can a coach connect to this in terms of coaching style? “Gijs: Which coaching style a coach uses depends on the entrepreneur's learning goal. So there is no one size fits all approach, but it comes down to customization. For example, when the entrepreneur's learning goal is about business-related knowledge and entrepreneurial skills, the entrepreneur usually needs someone to act as an advisor (based on knowledge and experience) or as skill trainer (teaching specific competences). For entrepreneurs who want to learn something about motivation or self-confidence in entrepreneurship, the coach often takes on the role of sparring partner. It is essential that the coach and entrepreneur consider this from the first moment and express this to each other. After all, when the learning objectives are sharp, the coach can determine whether the required coaching also fits their qualities.”

Of course, it doesn't stop here, because coaching is an ongoing process. During the process (preferably at predetermined times), it is crucial to reflect, evaluate and possibly redetermine the learning objective.” Gijs: Learning goals develop over time, for example, this may be related to the growth of the entrepreneur or company. It is possible that you start with a personal learning goal, which later develops into a business-oriented learning goal, or vice versa. Where the learning goal changes, the coaching style often has to change with it. The coach should be aware of his own abilities and coaching style shown and should regularly evaluate whether it still meets the entrepreneur's requirements. If this no longer fits, the coach must decide that another coach is more suitable or teach himself a new coaching style.”

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Involve stakeholders

A coaching process often has an impact not only on yourself, but also on your environment. To see whether learning goals are actually being achieved, direct stakeholders need to be involved in a coaching process. “Gijs: Very specifically, progress can be measured by engaging stakeholders at various coaching moments and having them analyzed. In addition, it is good to share the learning objectives with people in the area from the start. This way, people know that the entrepreneur is working on a specific learning goal and they can give suggestions or address the entrepreneur when they are not visibly working on the learning goal.”

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Investor role and goals

Another stakeholder who is often involved in a coaching process is an investor. For the study, it was expected that there was a triangular relationship between entrepreneur, coach and investor, where the investor only contributes financial resources. In practice, however, it appears that there is often a duo relationship, in which the investor takes on the role of coach. This has an effect on the coaching process: investors expect a mature, capable and open to feedback entrepreneur who can take the company to the next step.

The investor's goal is primarily a financial return on the investment. An entrepreneur must be able to create this. Secondly, the investor would like to have an impact on the entrepreneur, the company and the environment in which this company is located. In addition, investors find it valuable to be involved in the challenging set-up and growth phase of start-up and scale-up companies.

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Do you want an investment? Then be coachable

The research shows that an investor sees an entrepreneur's coachability as a crucial prerequisite for an investment. “Gijs: If an investor cannot mold and adjust the entrepreneur to get a positive result from the investment, he is not going to offer the investment in the first place. For the investor, don't think that your coached person will share everything with you, so always consider whether it's useful to hire an external coach. The other way around applies to the entrepreneur: an investor cannot fulfill 100% of your coaching needs because the relationship is ambiguous. The conclusion: do you want an investment? Then be coachable and make sure you have a good external coach!”