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What is COP26? Here’s how global climate negotiations work

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This article republished from The Conversation is by Shelley Inglis, University of Dayton, Ohio, USA. It looks at the forthcoming international gathering of Glasgow on Climate Change and on the potential confrontations from a practical point of view and elaborates in its own way on What is COP26? Here’s how global climate negotiations work.

The image above is about U.N. climate summits that bring together representatives of almost every country. UNFCCC

What is COP26? Here’s how global climate negotiations work and what’s expected from the Glasgow summit

Over two weeks in November, world leaders and national negotiators will meet in Scotland to discuss what to do about climate change. It’s a complex process that can be hard to make sense of from the outside, but it’s how international law and institutions help solve problems that no single country can fix on its own.

I worked for the United Nations for several years as a law and policy adviser and have been involved in international negotiations. Here’s what’s happening behind closed doors and why people are concerned that COP26 might not meet its goals.

What is COP26?

In 1992, countries agreed to an international treaty called the United Nations Framework Convention on Climate Change (UNFCCC), which set ground rules and expectations for global cooperation on combating climate change. It was the first time the majority of nations formally recognized the need to control greenhouse gas emissions, which cause global warming that drives climate change.

That treaty has since been updated, including in 2015 when nations signed the Paris climate agreement. That agreement set the goal of limiting global warming to “well below” 2 degrees Celsius (3.6 F), and preferably to 1.5 C (2.7 F), to avoid catastrophic climate change.

COP26 stands for the 26th Conference of Parties to the UNFCCC. The “parties” are the 196 countries that ratified the treaty plus the European Union. The United Kingdom, partnering with Italy, is hosting COP26 in Glasgow, Scotland, from Oct. 31 through Nov. 12, 2021, after a one-year postponement due to the COVID-19 pandemic.

Why are world leaders so focused on climate change?

The U.N. Intergovernmental Panel on Climate Change’s latest report, released in August 2021, warns in its strongest terms yet that human activities have unequivocally warmed the planet, and that climate change is now widespread, rapid and intensifying.

The IPCC’s scientists explain how climate change has been fueling extreme weather events and flooding, severe heat waves and droughts, loss and extinction of species, and the melting of ice sheets and rising of sea levels. U.N. Secretary-General António Guterres called the report a “code red for humanity.”

Enough greenhouse gas emissions are already in the atmosphere, and they stay there long enough, that even under the most ambitious scenario of countries quickly reducing their emissions, the world will experience rising temperatures through at least mid-century.

However, there remains a narrow window of opportunity. If countries can cut global emissions to “net zero” by 2050, that could bring warming back to under 1.5 C in the second half of the 21st century. How to get closer to that course is what leaders and negotiators are discussing.

U.N. Secretary-General António Guterres called the latest climate science findings a ‘code red for humanity.’ UNFCCC

What happens at COP26?

During the first days of the conference, around 120 heads of state, like U.S. President Joe Biden, and their representatives will gather to demonstrate their political commitment to slowing climate change.

Once the heads of state depart, country delegations, often led by ministers of environment, engage in days of negotiations, events and exchanges to adopt their positions, make new pledges and join new initiatives. These interactions are based on months of prior discussions, policy papers and proposals prepared by groups of states, U.N. staff and other experts.

Nongovernmental organizations and business leaders also attend the conference, and COP26 has a public side with sessions focused on topics such as the impact of climate change on small island states, forests or agriculture, as well as exhibitions and other events.

The meeting ends with an outcome text that all countries agree to. Guterres publicly expressed disappointment with the COP25 outcome, and there are signs of trouble heading into COP26.

Celebrities like youth climate activist Greta Thunberg add public pressure on world leaders. UNFCCC

What is COP26 expected to accomplish?

Countries are required under the Paris Agreement to update their national climate action plans every five years, including at COP26. This year, they’re expected to have ambitious targets through 2030. These are known as nationally determined contributions, or NDCs.

The Paris Agreement requires countries to report their NDCs, but it allows them leeway in determining how they reduce their greenhouse gas emissions. The initial set of emission reduction targets in 2015 was far too weak to limit global warming to 1.5 degrees Celsius.

One key goal of COP26 is to ratchet up these targets to reach net zero carbon emissions by the middle of the century.

Another aim of COP26 is to increase climate finance to help poorer countries transition to clean energy and adapt to climate change. This is an important issue of justice for many developing countries whose people bear the largest burden from climate change but have contributed least to it. Wealthy countries promised in 2009 to contribute $100 billion a year by 2020 to help developing nations, a goal that has not been reached. The U.S., U.K. and EU, among the largest historic greenhouse emitters, are increasing their financial commitments, and banks, businesses, insurers and private investors are being asked to do more.

Other objectives include phasing out coal use and generating solutions that preserve, restore or regenerate natural carbon sinks, such as forests.

Another challenge that has derailed past COPs is agreeing on implementing a carbon trading system outlined in the Paris Agreement.

Chinese street vendors sell vegetables outside a state-owned coal-fired power plant in 2017. Kevin Frayer/Getty Images

Are countries on track to meet the international climate goals?

The U.N. warned in September 2021 that countries’ revised targets were too weak and would leave the world on pace to warm 2.7 C (4.9 F) by the end of the century. However, governments are also facing another challenge this fall that could affect how they respond: Energy supply shortages have left Europe and China with price spikes for natural gas, coal and oil.

China – the world’s largest emitter – has not yet submitted its NDC. Major fossil fuel producers such as Saudi Arabia, Russia and Australia seem unwilling to strengthen their commitments. India – a critical player as the second-largest consumer, producer and importer of coal globally – has also not yet committed.

Other developing nations such as Indonesia, Malaysia, South Africa and Mexico are important. So is Brazil, which, under Javier Bolsonaro’s watch, has increased deforestation of the Amazon – the world’s largest rainforest and crucial for biodiversity and removing carbon dioxide from the atmosphere.

What happens if COP26 doesn’t meet its goals?

Many insiders believe that COP26 won’t reach its goal of having strong enough commitments from countries to cut global greenhouse gas emissions 45% by 2030. That means the world won’t be on a smooth course for reaching net-zero emissions by 2050 and the goal of keeping warming under 1.5 C.

But organizers maintain that keeping warming under 1.5 C is still possible. Former Secretary of State John Kerry, who has been leading the U.S. negotiations, remains hopeful that enough countries will create momentum for others to strengthen their reduction targets by 2025.

The world is not on track to meet the Paris goal. Climate Action Tracker

The cost of failure is astronomical. Studies have shown that the difference between 1.5 and 2 degrees Celsius can mean the submersion of small island states, the death of coral reefs, extreme heatwaves, flooding and wildfires, and pervasive crop failure.

That translates into many premature deaths, more mass migration, major economic losses, large swaths of unlivable land and violent conflict over resources and food – what the U.N. secretary-general has called “a hellish future.”

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Shelley Inglis, Executive Director, University of Dayton Human Rights Center, University of Dayton

Read the original article.

Remarks by World Bank Group President David Malpass

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The World Bank at a time when according to the IMF, the MENA region is on track for a recovery, despite some rising social unrest threatening the ‘fragile’ progress of low-income economies, produced the following enthusiastic remarks by World Bank Group President David Malpass address to the Arab Governors of the World Bank Group.

Remarks by World Bank Group President David Malpass to the Arab Governors of the World Bank Group

Let me begin by congratulating Minister Khalil.  Your appointment as Minister of Finance comes at a crucial moment in Lebanon’s history. The World Bank Group will work with you to support the critical reforms needed to address Lebanon’s challenges.   Thank you for mentioning Hela in your opening.  She’s the new IFC Vice President for the region, and I want you all to know the high priority we place on private sector advancement in the region.  All parts of the World Bank Group are making that a high priority.

Dear Governors and distinguished guests, it is a pleasure to be with you again to discuss the challenges and opportunities in your region.  Thank you for your recent annual letter outlining the key and urgent development challenges of the region. Let me also thank our Dean Dr Merza Hassan for helping to convene this meeting and for his unwavering support to the MENA region.

We meet today against a backdrop of uncertainty. The COVID-19 pandemic has led to reversals in development gains in many regions, threatening jobs, social stability – and lives.

MENA was hit particularly hard by Covid 19. Even before the pandemic, growth had stalled, poverty was on the rise, and the social contract between citizens and the state was strained. Climate change adds a further burden to the development challenge.

During my recent visits to the region, to Sudan, Jordan and the Palestinian territories, I saw firsthand the impact of this multi-pronged crisis. I was concerned by low investment levels, high unemployment rates, and low female labor participation rates.

I also saw potential via regional integration, pro-growth investment, and improvements in the enabling environment for business. The recovery in global growth provides opportunities to make positive changes, and I was encouraged by my discussions with officials and businesses.

As you know, MENA is the least economically integrated region in the world. We have expressed our support for any initiative aimed at developing economic ties between countries in the region, and we are thus looking at ways to support the gas and electricity potential connection between Egypt, Jordan and Lebanon.

While we are not in a position to engage in Syria, we nevertheless are concerned about the Syrian people’s economic woes due to the degradation of the situation in the country. Our position has always been to look after the people, and we are doing so for Syrian refugees in Lebanon and Jordan.

In the year leading up to the next annual meetings in Marrakesh, my message will remain focused on the importance of improving access to vaccines; recovering from Covid; overcoming conflict; mitigating and adapting to climate change; containing debt; and creating strong sustainable jobs for the youth of this region.

Morocco has made progress on all of these, and I want to thank you for graciously hosting us in 2022.

As a region, MENA will need to generate 300 million new jobs by 2050. These will be created largely by the private – not public – sector.  Reaching this critical goal of sustainable job creation needs governance and transparency, rule of law, and an attractive business environment.

IBRD, IFC and MIGA are fully engaged. I’m interested in hearing from you where the World Bank Group can position itself better.

As we move toward Marrakesh in 2022 and Cop27 in Egypt, how can the Bank Group assist in making these events a launching pad for more sustained and comprehensive development in MENA?

Thank you again for inviting me and let’s now open our discussion.

Dispute grips Green Climate Fund over net zero

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Published on 8 October 2021 by Climate Home News is the story of how a Dispute grips Green Climate Fund over net zero condition for accessing finance by certain countries. Here is this story.

The above image is for illustration and is of Climate Home News.

Dispute grips Green Climate Fund over net zero condition for accessing finance

By Chloé Farand

Board members from developing countries insisted that making a 2050 net zero goal a condition for accreditation to the fund breaches equity principles

The UN’s flagship climate fund has been gripped by fierce debate over what decarbonisation conditions should be imposed to developing nation organisations seeking to access funding.

In the Fulani village of Hore Mondji, located in southern Mauritania on the banks of the Senegal River, a women’s cooperative uses solar energy to operate the borehole that supplies water to the market garden. A project piloted by UNICEF in partnership with local authorities. In a country heavily impacted by drought and welding periods, solar energy represents an inexhaustible source of energy for the production of fruits, vegetables and aromatic plants (such as okra, carrots, mint, peppers, eggplants or tomatoes) for local consumption as well as for sale in the markets of neighboring towns. The women of the cooperative thus have a regular income as well as a rich variety of fruits and vegetables that promote dietary diversification and the well-being of their children.

It was close to 4am on Friday in the Green Climate Fund’s South Korean headquarters when board members brought the four-day virtual meeting to a close.

Besides the usual delays and procedural wrangling, discussions became heated when board members were asked to consider whether to renew the GCF’s partnership with the Development Bank of Southern Africa (DBSA).

At the heart of the issue was a disagreement between members from large emerging economies and richer nations over whether decarbonisation conditions should be imposed on organisations from developing nations seeking to access funding.

The GCF was created to help poor countries curb their emissions and cope with climate impacts. It depends on agencies like DBSA to deliver projects in poor nations.

Some board members from rich countries added as a condition for DBSA to be re-accredited that the bank adopts a 2050 net zero emission target across its portfolio, and an intermediate 2030 target, within one year of the accreditation being approved.

The bank, which currently has no fossil fuel exclusion policy, would have to demonstrate how it is shifting its loans and investments away from carbon-intensive activities.

But the move was strongly resisted by developing country members who accused developed nations of imposing a carbon-cutting pathway on poorer ones.

Wael Aboul-Magd, of Egypt, told the board the 2050 net zero goal was “a global aspiration, not a prescription to every country, and particularly not for developing countries”.

Turkey ratifies the Paris Agreement after approving a 2053 net zero goal

Board member Ayman Shasly, of Saudi Arabia, described the condition as “blackmail,” adding that the GCF was being “manipulated by [developed countries] pushing their own agenda onto the fund”.

Yan Ren, of China, agreed with Shasly that the condition did not respect the Paris Agreement’s equity principle of common but differentiated responsibilities that nations that became rich from burning fossil fuels should cut their emissions faster to allow poorer ones to develop.

“We should not impose conditions on developing countries to force them to achieve certain targets. There is no one size fits all on fossil fuels,” she said.

DBSA is a development finance institution wholly owned by the South African government with 60% of its financing directed to the rest of the African continent.

Oil Change International data shared with Climate Home News shows that between 2018 and 2020, DBSA supported gas projects with $270m in financing, compared with nearly $320m for wind and solar.

Some of the DBSA-backed projects included a gas power plant in Ghana and LNG production in Mozambique.

However, campaigners warned that poor transparency in reporting at DBSA meant the true figures could be higher.

Campaigners have directly called on the South African government to commit to stop funding fossil fuels through DBSA by ensuring the bank adopts a fossil fuel finance exclusion policy and increases financing for accelerating the clean energy transition.

UAE sets net zero by 2050 target, promises renewable investments

Members from rich nations pushed back against calls to re-accredit DBSA without any conditions and the issue was postponed to a future meeting.

Stéphane Cieniewski, of France, said the conditions were “not unreasonable or excessive” and aligned with the Paris accord.

Lars Roth, of Sweden, one of the board members who requested the net zero condition be applied to DBSA, told the meeting the bank was “already working on and intended to approve” a 2050 net zero goal across its portfolio and would be making a formal announcement in a couple of months.

Meanwhile, the fund agreed to re-accredit the UN Development Programme for another five years, amid ongoing corruption investigations into two of its projects in Albania and Samoa.

Overall, the board approved $1.2 billion for 13 new carbon-cutting and adaptation projects – a record amount for a single board meeting.

This included $125m for the GCF to become an anchor investor in the creation of a global fund to support and de-risk private investment designed to protect and restore coral reefs around the world.

The Global Fund for Coral Reef will support companies investing in sustainable fisheries and aquaculture practices, coral farming, plastic waste management and water treatment.

But it will also promote ecotourism and the development of “sustainably-managed hotel resorts” and tourists activities such as “surf, diving, snorkelling and cruises”.

UAE sets net zero by 2050 target, promises renewable investments

The proposal was submitted by Pegasus Capital Advisors, a Delaware-incorporated private equity firm. The fund is due to be rolled out in 17 countries and aims to protect 29,000 hectare of reef globally and create nearly 13,000 jobs.

Board members overwhelmingly backed the design of the project despite strong opposition from civil society members acting as observers at the fund.

“We are very concerned that instead of helping communities in reef ecosystems adapt from climate change impacts, this adaptation project will profit out of harming the reefs,” Erika Lennon, of the Center for Environmental Law, told the board.

Lennon described the absence of connection between funding surf, diving or snorkelling enterprises with safeguarding reef ecosystems as “woefully inadequate” and urged for investments in hotel resorts, cruises and shrimp farming to be explicitly excluded from the scope of the project.

She warned that reef-damaging practices promoted by the project risked damaging the GCF’s reputation.

How one country responded to disappointing Doing Business scores

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The following story is about how one country responded to disappointing Doing Business scores to reform its rules and regulations for its own benefit. Would discontinuation of this instrument mean its non-availability to others?

The above image is for illustration and is of iStock.

How one country responded to disappointing Doing Business scores

By Akhtar Mahmood 8 October 2021

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On September 16, 2021, the World Bank discontinued the Doing Business (DB) report, one of its flagship diagnostic products. This action follows what the World Bank called “a series of reviews and audits of the report and its methodology.”

The DB report, published each year since 2004, was one of the World Bank’s most influential reports in recent years. Every autumn, people around the world would wait eagerly and, in some cases, with some trepidation, for its release. Over time, the reports increasingly attracted the attention of heads of governments who wanted to see their countries do well in the rankings.

When the DB report came out in 2015, the Indian government was disappointed. Soon after taking office in 2014, Prime Minister Modi announced his government’s intention to bring India’s ranking into the top 50 within a few years. Several reforms were carried out in the following months, which the Indian government hoped would put India on a trajectory of rapid annual improvements in the ranking. The 2015 report (officially called “Doing Business in 2016”, since the World Bank always gave the report a forward-looking title) indicated only a modest improvement in India’s rank, from 142 to 130.

The World Bank explained to the Indian government that while several reforms may have been enacted on paper, Indian businesses did not report feeling an impact on the ground. Some responded, “What reforms?”, while others heard about the reforms but had not seen improvement on the ground. The reforms could not be officially recognized until the private sector reported real improvements. The World Bank suggested that the government put in place feedback loops to provide real-time information from businesses on whether the reforms were being well implemented. The government, instead of whining further about the scores, started working on such feedback loops. For several regulatory reforms covered by the DB indicators, it started surveying businesses on whether they felt any reform impact on the ground.

From February 2016 to May 2017, the government carried out a series of business-to-government (B2G) feedback exercises and focus group discussions (FGDs) on how much the businesses were aware of the enacted reforms and their views on the quality of reform implementation. Nine B2G feedback exercises were carried out. Topics covered construction permits (three surveys each in Delhi and Mumbai), starting a business (two surveys), and trading across borders.

The exercises revealed several implementation gaps, some major and some minor. An example is construction permitting. A business survey carried out in Delhi in March 2016 revealed the following implementation issues: a) significant lack of agency coordination—architects still need to obtain approvals from up to 10 different agencies; b) some facilities for online payment were not properly implemented and certain fees were still paid manually; c) very low awareness of the online system among users; d) no way to track the status of an application; e) information lacking on documentary and other requirements. In other words, the reforms had not gone far enough to have impact on the ground.

This feedback exercise helped generate several recommendations to address the deficiencies. These were provided to the Municipal Corporation of Delhi (MCD), and most were acted upon. Follow-up feedback exercises in October 2016 and February 2017 validated these actions while generating additional recommendations for further improvement. A similar effort was made in Mumbai.

The impact of these efforts can be seen in the trends in India’s performance on the “Dealing with Construction Permits” indicator. In the Doing Business in 2016 report, India’s ranked 183 on this indicator. Thirty-three procedures were involved taking 191 days according to the indicators. Two years later, the number of days had come down to 144 with a modest improvement in the rank to 180. The more substantial improvements came the following year when the DB report published in October 2018 indicated a reduction in the number of procedures and days required to 18 and 95 respectively. Still a long way to go but enough to propel India’s ranking on this indicator to 52. While all this improvement cannot be attributed to the feedback exercises alone, it is possible to trace a substantial part of this improvement to actions taken as a result of these exercises.

The Indian government also recognized that the DB indicators did not cover many regulatory interfaces that created problems for businesses and that the indicator measures were based on conditions in just two cities, i.e., New Delhi and Mumbai. Thus, in parallel to its efforts on the DB front, the Indian government embarked on an ambitious regulatory reform program at the state-level covering all states and union territories in the country. A long list of regulatory reforms was identified covering several regulatory areas, and state governments were instructed to carry out the reforms. Called the Business Reforms Action Plan, the program started in 2015.

Progress was monitored through annual indicators that ranked states according to their performance on implementing the reforms. The first such indicators, published in 2015, did not take into account business feedback. However, seeing the usefulness of the feedback exercises carried out as part of the DB program, the government changed the state-level reform indicators in 2018 by making a substantial part of the indicator scores dependent on business feedback.

The powerful demonstration effect of such feedback exercises had touched individual state governments too. In 2018, four state governments, Chhattisgarh, Jharkhand, Orissa, and Rajasthan, expressed an interest in knowing why there was poor uptake of self-certification and third-party certification options provided in business inspection reforms carried out by these states. At their request, the World Bank carried out an independent feedback exercise that could help design corrective actions to improve uptake.

The Indian experience from 2016 onward is a good example of what the DB indicators can lead to if governments use them well. First, the government refocused its attention from reforms on paper to reforms on the ground. Second, it recognized the importance of consulting with the private sector, which knows best where the shoe pinched, and designed corrective actions based on the feedback. This iterative process helped improve reform implementation quality. Third, the government recognized that while the DB indicators were useful, they were not adequate to diagnose the myriad of regulatory issues that businesses all over India faced. Thus, the government embarked on a more comprehensive, state-level, reform program, and, inspired by the power of indicators, underpinned this program by a set of performance indicators. Finally, once the pioneering DB-related feedback exercises proved useful, they created a demonstration effect, first within the central government, which replicated such exercises for the state-level reform program, and then on individual state governments.

BROOKINGS

Akhtar Mahmood, Former Lead Private Sector Specialist – World Bank Group

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The anxiety list for MENA entrepreneurs is long, as is the one curing it

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Hadi Khatib on AMEInfo of 18 September 2021 came up with this deep statement on the anxiety list for MENA entrepreneurs that is long, as is the one curing it

The anxiety list for MENA entrepreneurs is long, as is the one curing it

A research report on the mental health challenges and wellbeing of entrepreneurs due to COVID-19 in the MENA region revealed anxiety has several facets in the minds of these leaders. But all of these insecurities have cures.

  • 55% of startup founders said that raising investment has caused the most stress.
  • More than 95% of entrepreneurs view co-founders as family members and/or friends.
  • Research finds that entrepreneurs are happier than people in jobs.

EMPWR, a UAE-based digital media agency dedicated to mental health and an exclusive mental health partner for WAMDA and Microsoft for startups, published a research report on the mental health challenges and wellbeing of entrepreneurs due to COVID-19 in the MENA region.

The research indicated that startup founders undergo higher levels of stress than the rest of the region, with twice the likelihood of developing depression issues.

55% of startup founders said that raising investment has caused the most stress; the pandemic was the second most-cited reason cited by 33.7% of respondents.   44.2% spend at least 2 hours a week trying to de-stress. 

Other insights, uncovered by the report, include:

  • A good relationship between co-founders can help startups navigate the pandemic-hit market. More than 95% of entrepreneurs view co-founders as family members and/or friends
  • Many entrepreneurs live well below their means to fund their ventures, leading to stress that is detrimental to their health

With only 2% of healthcare budgets in the MENA region currently spent on addressing mental health, the impact of the COVID-19 pandemic on young entrepreneurs and achievers could lead to an economic burden of $1 trillion, by 2030, according to the report.

EMPWR’s MENA partners shared special offers on their mental health services for the region’s entrepreneur community.

From Saudi Arabia:

Labayh is offering the technology ecosystem a 20% discount on their online mental health services for 2 months. Promo code: empwr, with the offer valid until October 29.

From Egypt:

O7 Therapy are offering 50% off their online mental health services, for 50 Entrepreneurs in the MENA region. Promo code: Entrepreneur50, valid until December 1, 2021.

From the UAE:

My Wellbeing Lab is offering 20 one-on-one coaching sessions to entrepreneurs that wish to be coached and helped; alongside unlimited access for any entrepreneur to their “Discovery Lab”, a platform that gives entrepreneurs and leaders insights into their mental wellbeing as well as their teams. Promo code: MWL21.

Takalam is offering 10% off for 3 months. Promo code: Impact.

Mindtales is offering the MENA ecosystem 50% off their services for one month. Their App can be downloaded here.

H.A.D Consultants is offering 20 one on one coaching sessions to entrepreneurs. Promo code: HAD_SME01.

From Oman:

Nafas, a meditation app focused on reducing stress, anxiety, and help with insomnia, is offering access to its platform. Register as a user via this link to redeem benefits. 

Entrepreneurs’ mixed emotions

Entrepreneurs must grapple with uncertainty and being personally responsible for any decision they make. They likely have the longest working hours of any occupational group and need to rapidly develop expertise across all areas of management while managing day-to-day business.

Yet despite all this, research finds that entrepreneurs are happier than people in jobs.

To understand this, a comprehensive and systematic review of 144 empirical studies of this topic, covering 50 years revealed:

1. It’s not all about pay

Work on the economics of entrepreneurship traditionally assumed that entrepreneurs bear all the stresses and uncertainties in the hope that over the long term they can expect high financial rewards for their effort. It’s false.

2. Highly stressful, but…

High workload and work intensity, as well as financial problems facing their business, are at the top of the entrepreneurs’ stress list.

But some stressors have an upside. While they require more effort in the here and now, they may lead to positive consequences such as business growth in the long term. Some entrepreneurs appear to interpret their long working hours as a challenge and therefore turn them into a positive signal.

3. Autonomy is both good and bad

The autonomy that comes with being an entrepreneur can be a double-edged sword. Entrepreneurs can make decisions about when and what they work on – and with whom they work. But recent research into how entrepreneurs experience their autonomy suggests that, at times, they struggle profoundly with it. The sheer number of decisions to make and the uncertainty about what is the best way forward can be overwhelming.

4. An addictive mix

The evidence review confirms that, by any stretch of imagination, entrepreneurs’ work is highly demanding and challenging. This, along with the positive aspects of being their own boss coupled with an often competitive personality, can lead entrepreneurs to be so engaged with their work that it can become obsessive.

So the most critical skill of entrepreneurs is perhaps how they are able to manage themselves and allow time for recovery.  

Stress management tips for entrepreneurs

Identify what the actual source of your stress is. Is it tight deadlines, procurement issues, raising capital, managing investors’ expectations, building a talented team, or delay in landing the first sale for your new startup business?

Even if numbering more than a few, break them down because unmanageable tasks look simpler when broken down into smaller segments. Then, list down how you plan to successfully tackle each issue. Meanwhile, exercising multiple times a week has been rated as one of the best tactics for managing stress.  

Another technique for handling stress is to take a break. Rest as much as you can before going back to continue with the tasks.  It’s also a good idea to reach out to friends, family, and social networks because they are likely to understand what you’re going through and offer words of wisdom and courage.

Stay away from energy-sapping junk food. Eating healthy keeps you fueled for the next challenge. Finally, get enough sleep, and power naps. Sleep helps your body and mind recover.   

Hadi Khatib is a business editor with more than 15 years of experience delivering news and copy of relevance to a wide range of audiences. If newsworthy and actionable, you will find this editor interested in hearing about your sector developments and writing about them. He can be reached at:  hadi.khatib@thewickfirm.com