In many poor countries, most people work for themselves, running their own small businesses. Unfortunately, many of these businesses don’t do well, despite efforts by governments and charities to help. This problem is especially tough for women who are trying to start businesses.

But there might be a simple way to make things better, according to a study from Chicago Booth. They found that when women who own businesses get help from other women who have more experience, things improve.

The right support

The study was done in Uganda in 2015. They worked with 930 men and women who had their own businesses. Some got regular help from volunteer mentors, and others didn’t. About 40% of the business owners were women.

The mentors talked to the business owners over the internet and phone, helping them learn how to make their businesses better. When the researchers checked back two years later, they found that the women who had female mentors had much better results.

Their businesses made more money and were more profitable compared to those who didn’t have mentors. The men with male or female mentors had similar improvements in sales, but the women with female mentors did especially well.

Relating better

The researchers think that having a female mentor helps women in business because they can relate better to each other. This support helps women overcome the challenges and stereotypes they face as business owners in poor countries.

The study suggests that mentorship programs should focus on connecting women business owners with experienced female mentors, especially in developing countries.