Working for yourself?

Here's how to cope with the stress

The nature of work in the gig economy - where workers have to support
themselves and take on the risk associated with the job - undermines some of
our fundamental human needs and can create a significant amount of mental
stress.

People often define their worth to society, friends, and family through their job.
In fact, when people are asked “If you were to get enough money to live as
comfortably as you would like for the rest of your life, would you continue to
work or stop working?”, studies consistently find that most people say that
they would keep working.

With work playing such an important role in our lives, it’s not surprising that
the stress of insecure work can have a huge big impact.

It’s not uncommon for people to feel insecure about their job at various times
in their working life. This insecurity comes from concerns about the future of
their work, whether it will continue in the future, the nature of the job, or a
combination of the two.

Job insecurity is associated with emotional exhaustion, depression, anxiety,

and even heart disease. But with the gig economy, this sort of insecurity is
part and parcel of the job.

According to the well known hierarchy of needs it’s essential that our

physiological, safety, and security needs are met. Feelings of security can
come from having a job, a home, and sufficient financial means. Once these
needs are met, then we turn our motivation to the remaining levels of the
hierarchy of needs: belonging, esteem, and (for some) self-actualisation.

For workers in the gig economy, the motivation to meet these safety and
security needs can understandably become overwhelming. They might
withdraw from family and friends, struggle with their mood, and stop enjoying
the things that used to give them pleasure (think that sounds a lot like
depression? You’re right).

Image: World Economic Forum

Freelance work is more stressful for some

The lack of security that comes from this type of work is not a problem for all
of these workers. Different life circumstances will mean the stakes involved
with gig work change over time.

It’s important to differentiate between people who use contracts through

choice, versus those who feel like contract work is their only option.

Workers in the gig economy might also have a different experience based on
age. Worrying about how much money you can put into your superannuation
feels quite different depending on whether you are 20 or 50.

Similarly, someone who chooses to do some driving for Uber on the weekend
to make a little extra money on top of their permanent job, will have a
difference experience of gig work than someone who relies on their Uber
driving to pay their rent.

This means that for some, the insecurity of gig or contract work is unlikely to
have a negative effect on their mental health. If you are doing the contract
work by choice or using it to “top up” your main source of income, then the
insecurity of that work isn’t likely to be a problem.

A person’s personality can also play a role. If you’re a risk taker you might feel
quite comfortable with the prospect of long periods without work, and short-
term contract work might suit. But someone who is risk averse is likely to find
the lack of security very stressful, potentially leading to negative psychological
outcomes like anxiety and depression.
Some people will be very well suited to freelance work. Enterprising
individuals tend to be ambitious and self-confident, and can enjoy starting and
carrying out series of different projects. Work in the gig economy might also
be easier for those who are more creative or autonomous, who prefer
independent contract work, rather than trying to fit into an organisational
structure.

Coping with freelance and contract work

If freelance workers are struggling to stay mentally healthy in the gig

economy, there are a number of coping strategies they can try.

Getting emotional and social support from people around you (particularly
those in a similar position) can be valuable. Of course, if you are an
freelancer, you might not have a water cooler to stand around for debriefs.

Freelancers could consider getting some social support from other

workers online. Be it online or offline, sharing strategies to deal with work-
related problems and managing stress will help to make a difference.

Focusing on what is good about the situation (known as positive reappraisal)

might also be helpful. This is more than just thinking positively, it means
emotionally reframing a situation in a constructive and realistic way. For
example, rather than focusing on the down-time between contracts as a lost
opportunity, freelance workers could instead see it as an opportunity to start
the ground work on their own small business, with a view to securing a more
stable income stream.

Finding a mentor can be difficult in a gig economy, but a good mentor can

help you identify what you need to do to survive and thrive in your chosen
field. A mentor’s support and guidance can be invaluable in building career
success, and importantly, can also help to reduce psychological strain.

Historically, finding a good fit between the job and the worker was considered
to lead to workplace success. This principle still applies in the gig economy.

Although the way we work is changing — and seems likely to keep changing
for the foreseeable future — for the right person at the right time in their life,
gig work can provide the chance to independently match their skills with the
demands of the marketplace.
Written by
Rachel Grieve, Senior Lecturer in Psychology, University of Tasmania

This article is published in collaboration with The Conversation.

The views expressed in this article are those of the author alone and not the World Economic
Forum.

Job on the side? This is why you should give it up

Side jobs are in right now.

For some, they're a great way to bring in some extra cash.

However, side jobs are not for everyone.

In fact, Randy Nicolau, cofounder and CEO of office product startup Poppin,

said that side gigs are actually a bad idea when you're launching your own
startup or new business.

"You have to just pull the Band-aid off and go for it," Nicolau told Business
Insider. "As soon as you have contingency plans and backup plans, 'Oh, I'm
going to do consulting on the side, to keep a little money coming in.' That
means you're not going to dedicate 100% of your time to this thing. Those
almost always fail, in my experience."

He draws a distinction between side hustles: If your side gig is the business
you eventually hope to become your 9-5, you're probably in a different
position. But if you're holding an obligatory side job just for the cash, it might
just end up distracting you from the all-consuming process of starting your
own business.

"You're working seven days a week around the clock," Nicolau said. "It's all
you think when you sleep, it's all you think about when you shower, are on an
airplane, et cetera."

He said that it's easier for young people without life responsibilities to get
started as entrepreneurs. Still, he recommends that anyone who has a
passion for entrepreneurship give it a shot, even if they have responsibilities.

It all boils down to your motivations, he said. It's not enough to found a startup
because you want to be your own boss or rake in a ton of money.

"It's something that burns inside of you from grade school," Nicolau said. "If
you're just reading Business Insider and TechCrunch and getting all excited
because you see people making billions of dollars what seems to be
overnight; we know that nothing really happens overnight. It takes years and
years and years."
Written by

Aine Cain, Careers Reporter, Business Insider

This article is published in collaboration with Business Insider.

The views expressed in this article are those of the author alone and not the World Economic
Forum.

This woman has seven income streams and says you should diversify your earning power.

Dorie Clark is a marketing strategist and the author of "Entrepreneurial

You."

She recommends diversifying your income and career so that you're

never left in the lurch if you lose a job.

Having multiple jobs and income sources also helps you develop your
skills and build your brand.

In 2001, Dorie Clark was working as a political reporter. It was her first job out
of grad school.

One day the director of human resources called her into his office. "I thought
perhaps they were changing our dental plan," she recounts in her new book,
"Entrepreneurial You." "Instead, I got laid off — effective immediately."

Today, Clark is a marketing strategist, an adjunct professor of business

administration at Duke University's Fuqua School of Business, and the author
of multiple books, the most recent of which is "Entrepreneurial You."

On an episode of The Art of Charm podcast, Clark explained the value of

diversifying your income streams and professional pursuits, so that should you
meet a fate like she did in 2001, you won't be devastated.

Here's Clark:

"Everybody knows if you have money, you shouldn't invest it all in one stock.
Everybody knows that's a bad idea. You need to diversify there.
"But for our jobs, for how we make money, I think many of us — most of us —
have one way we make money. It can be very risky. I've really come to
believe, and have done a lot of research over the years, that one of the best
ways that we can create real, legitimate professional stability for ourselves is
by choosing to cultivate multiple income streams.

"That's certainly true for entrepreneurs, but even for people who work inside a
company, cultivating a side income stream of some sort — whether it's having
an Etsy store on the side, or doing a little bit of coaching or having a workshop
now and then, whatever it is, doing a little bit of paid speaking — having that
sideline gives you additional protection against uncertainty and also has a lot
of other benefits.

"Frankly it helps you build your skills; it helps you develop your brand."

In the book, Clark writes that she currently earns a living from seven sources:
writing books, speaking, teaching at a business school, consulting, executive
coaching, running online courses, and generating affiliate income through her
email list.

On the podcast, Clark shared another story that illustrates the power of
diversifying your career, drawn from "Entrepreneurial You."

Lenny Achan started his career as a nurse at Mount Sinai Hospital in New
York City; on the side, he was developing apps. His boss found out and was
impressed, and gave him the chance to head up social media for the hospital.
Achan accepted the opportunity and performed so well that he subsequently
became the head of communications at Mount Sinai.

Leonardo da Vinci is another example of someone who was a "wide

achiever," in the words of Roman Krznaric, author of "How to Find Fulfilling
Work." Da Vinci was alternately a portraitist, an inventor, and a scientist.
Krznaric says that in light of decreasing job security today, spreading yourself
among several different jobs, as da Vinci did, is probably a smart thing to do.

In "Entrepreneurial You," Clark quotes Jenny Blake, a former Googler, a

career coach, and the author of "Pivot."

Blake said when she was starting to build her speaking business, she relied
on one-on-one coaching sessions to provide "bridge income." That is, even
though speaking was her passion, she wasn't yet earning enough from her
speaking gigs to support herself — the income bridged the gap between two
career phases.

Clark offers a free online assessment to see how you can start diversifying
your income and career. But there are plenty of so-called "side gigs" you can
take up, from web designer (up to $32 an hour) to group fitness instructor (up
to $41 an hour).

Written by

Shana Lebowitz , Strategy Reporter, Business Insider

This article is published in collaboration with Business Insider.

This is the secret of the most successful small businesses

In 2016, the World Trade Organization released an extensive report on small

and medium-sized businesses. Its biggest revelation was how little we know
about them.

SMEs, which employ most workers and account for 95% of all firms, are the
lifeblood of the world’s economy. Yet they remain understudied,
underappreciated and underserved, little understood even by the larger
companies that count them as customers and suppliers. What’s more, they
have been consistently ignored by negotiators writing international trade rules.

The WTO says SMEs - companies with fewer than 250 employees - have
been “largely absent from the broad trade debate.” One result, it says, is that
cross-border trade is more difficult and costly for smaller businesses than for
larger companies.

Beyond that, the WTO study reads like a confession or self-indictment.

“Relatively little is known about SME participation in trade, … their decisions
to start exporting, or the benefits they may derive from internationalization,”
the report says. “In the WTO context, SMEs have not figured very prominently
over the years. A relatively small number of agreements have provisions that
refer explicitly to SMEs.”

Ouch.

In some ways, SMEs defy efforts to study them. A “born global” start-up – say,
a German firm selling digital wares – has little in common with an African
micro-enterprise that lacks internet connectivity and can’t make bank transfers
or count on reliable delivery of goods.

Available evidence suggests a strong correlation between the technological

savvy of small companies and the likelihood they will take part in cross-border
trade. eBay data from 22 countries shows that 97% to 100% of “technology-
enabled” small firms export but indicates that only 2% to 28% of “traditional”
SMEs are exporters.

Indeed, technology is the great leveler for SMEs. When it comes to trade, their
biggest obstacles are access to distribution networks, information about
border regulations and standards, trade finance, trusted payment
mechanisms, and reliable, cost-effective shipping.

Image: World Trade Organization and OECD

A soon-to-be-published survey of 800 small and medium-sized companies by

the digital freight platform ShipA Freight highlights the vital role of technology
in the success of these businesses and hints at the rise of the global SME.
Some 86% of those surveyed said technology is “levelling the playing field” to
allow them to operate globally. They identified high shipping costs, lack of
visibility into those costs, and the complexity of international shipping as the
main obstacles to selling across borders.

Today, public sector and private sector actors are at last trying to solve those
problems for SMEs. Governments are scrambling to create online resources
with everything from how-to guides to matchmaking services to single-window
export-import portals. E-commerce platforms are helping SMEs reach
customers at low cost, share product information, establish trust and engage
in web-based sales across borders. Digital platforms such as ShipA Freight
are giving small businesses a secure, easy way to manage shipments online,
walking them through compliance issues, providing payment mechanisms,
and offering port-to-port or door-to-door delivery.

Taken together, these developments give SMEs a “virtual” scale they could
never attain before or achieve on their own. And as both the platforms and the
enterprises using them get more sophisticated, SMEs will improve their
productivity, lower their costs and gain the ability to plug into global value
chains dominated by larger businesses.

The data on SMEs and trade is incomplete but fairly conclusive. Whether in
developed or developing countries, smaller enterprises that do business
across borders generally grow, profit, increase productivity, diversify - and
survive - at higher rates than those that don’t.

Written by

Tarek Sultan Al Essa, Chief Executive Officer and Vice-Chairman of the Board, Agility

How small companies can compete on the world stage

Small businesses play a critical role in the global economy, contributing to

economic opportunity, diversity and the overall health of our communities. If
current trends continue, however, we may soon wake up in a world where
many of these businesses have closed and only a few of the very largest
players remain open.

This could have a dramatic impact on innovation, jobs, the widening income
gap and communities around the world. If, however, we work together across
the public, private and social sectors, we can democratise access to
affordable tools that will enable businesses of all sizes to grow and thrive,
fostering a vibrant economy and a more diverse and inclusive world.

Commerce is consolidating globally

We’re already beginning to see consolidation of commerce in the form of

businesses closing storefronts, cutting workforces and filing for bankruptcy –
unable to compete in this new commercial environment.

This trend is impacting markets globally. In the US, it’s estimated that about
10,000 retail jobs are lost monthly and more than 8,600 stores closed their
doors in 2017 – the highest number on record. And a recent study by The
Economistfound that nearly two-thirds of the 900 sectors covered by the
economic census were more concentrated in 2012 than they were in 1997.

This consolidation has hit small and medium-sized businesses particularly

hard, which is troubling considering that these businesses account for 60% to
70% of jobs in most OECD (Organisation for Economic Cooperation and
Development) countries and a disproportionately large share of net new jobs.

In India, the 46 million micro, small and medium-sized enterprises (or MSMEs)
reportedly account for nearly 30% of the country’s total employment. And
recent studies show that in China, MSMEs make up 97% of all businesses,
80% of urban employment and 60% of total GDP. The success of these
businesses is critical for the economic health of their communities.
Image: Paypal (Source: OECD)

Technology and partnerships

Several factors have contributed to this consolidation, including economies of

scale, often technology driven, that allow a few of the largest businesses to
have offerings that smaller players simply can’t match. But there are three
areas in which we can innovate and partner to help support a diverse set of
businesses:

1. Democratize access to mobile technology and seamless commerce

tools

One important factor leading to the consolidation we’ve seen in recent years is
the rapid rise and adoption of mobile technology. Consumers are turning to
their mobile devices as their primary channel for engaging in commercial
activity. This shift to mobile is happening all around us – from Kenya, where
more than half of the population reports having used their mobile phones to
make a payment, toSweden, where the country is rapidly converting into a
cashless economy. As smartphone adoption continues to drive increased
internet connectivity and usage, this trend will only accelerate.
Over the next several years, this shift to mobile will be responsible for
increasingly larger percentages of commerce globally. Mobile is unlocking
new opportunities and enabling businesses and consumers to connect at the
point of discovery. But it is also consolidating commerce in the hands of a few
who have the resources to build seamless commerce experiences on a global
scale. As business shifts into new contexts – from mobile to social, to things
like virtual and augmented realities – this consolidation will likely only
increase.

Companies like PayPal and Facebook, for example, are partnering to enable
digital commerce in new contexts, like on social media. Through partnerships
like these, even the smallest of businesses can open their doors to global
consumers in the new contexts in which commerce is emerging. By working
together across the technology and financial sectors, we can democratise
access to the tools that can help create opportunities for businesses of all
sizes.

2. Make affordable small business financing available

Since the Great Recession, banks have reduced the number and size of loans
extended to small businesses, which has made it even more challenging for
entrepreneurs and small businesses to launch, grow and scale. Studies show
that decreases in lending can further contribute to consolidation. Meanwhile,
advances in technology and big data, as well as new means of assessing
creditworthiness, have made it easier, safer and more cost effective for the
public and private sectors – and even individuals – to extend financing to
businesses.

With this decrease in financing, fintech companies – often in partnership with

banks – are stepping in to provide access to affordable capital so that
enterprises can invest back into their businesses and, in turn, their
communities. Non-profit organizations like Kiva, are helping to bring
microloans – and opportunity – to entrepreneurs and small businesses around
the world. And think-tanks like the Milken Institute are partnering with global
organisations, like the World Bank, to fund small businesses in developing
countries and create jobs. But still, much more can be done.

3. Help small businesses transform into cross-border businesses

Brick and mortar businesses today are limited in the customer base they can
reach. Yet reports show that people increasingly want to shop across borders
to find unique goods and competitive prices. According to Forrester, cross-
border shopping will make up 20% of all ecommerce within the next five
years.

Despite this, the World Bank reports that only about 9% of small businesses
and 16% of medium-sized businesses in low-income countries sell online.
Even in upper-middle-income countries, less than 30% of small businesses
and less than 40% of medium-sized businesses sell online.

Small businesses need access to digital tools that open them up to global
audiences. The financial, technological and logistical tools that can help small
businesses enter global markets, exist today. Through partnership, we can
make these tools more accessible.

Together, the public sector and trade associations can invest in educating
local entrepreneurs about the importance of digitizing their businesses and
selling internationally. Local businesses looking for ways to grow, impact
investors interested in financing social good projects, and fintech companies
that can provide the needed technological and financial tools, should work
together to expand access to these capabilities. This will help drive commerce
to millions of the small and medium-sized businesses that are responsible for
so much economic growth and employment.

We have the opportunity to build a more vibrant and inclusive economy – one
that inspires entrepreneurs to get started and supports small businesses as
they grow. Through collaboration across the financial services ecosystem,
governments, multilateral organisations, non-profits and think tanks, we can
democratise access to mobile commerce capabilities, expand access to
affordable financing and equip businesses with the tools needed to compete
on the global stage.

Together, we can foster greater economic development and a more inclusive

society that will fuel global growth, prosperity and equality.
Written by

Bill Ready, Executive Vice-President

and Chief Operating Officer, PayPal
 How fintech is making investment accessible

Mutual funds are considered one of the safest investment options available.
They work by allowing an individual to pool their money with other investors,
creating a fund that can be managed by investment professionals and
distributed to generate profit. These pooled funds generally get invested in
stocks, bonds, money markets or other securities, in different combinations
and with varying risk-return profiles.

Like most investment options, there are limitations in terms of liquidity for
disbursing a mutual fund. Most financial institutions need two to three working
days to disburse the money. This procedure has been considered the norm.

But it presents challenges in a developing country such as Indonesia. With a

GDP per capita under $4,000 and cash usage still heavy, most Indonesians
do not invest. They need their income to sustain their day-to-day life. Easy
access to money is an important criteria in making their financial decisions,
and setting aside money for investment is considered a luxury. Most people
simply don’t have the financial freedom to do so. With less than half the
population owning a bank account and credit card penetration still below 8%,
the limitation of access that comes with a mutual fund does not appeal to
them.

Have you read?

 Public investment banks could be a powerful tool for growth

 How women venture capitalists invest says a lot about the inequality in
their field

 Why 'gender-smart' investing is expanding rapidly

However, emerging trends in financial technology in Indonesia have finally

provided solutions to this concern. Fintech development has made it possible
for companies to offer the benefit of a mutual fund while ensuring access to
cash whenever people need it, giving a ray of hope around the future of
financial behaviour and investment habits in the country. With leading tech
players developing financial services that offer mutual fund investments from
as low as IDR 10,000 (roughly $0.70), barriers of entry have started to
diminish.
In addition, some of these significantly more affordable investment products
also offer immediate withdrawal of funds, where users can invest their money
on these platforms in a mutual fund and still disburse it instantly. In other
words, as soon as someone has invested in that mutual fund product, they
can decide to withdraw it the next moment and get their money back.

It is fortunate that some leading fintech players are bold enough to break the
norms and have a growth mindset. It is hoped that an affordable mutual fund
product will change how Indonesians perceive investment and allow them to
give it a try, by providing attractive value while letting them maintain control of
their cash flow. Investment no longer has to be a luxury they can’t afford.

Technology enables us to solve creatively the instant disbursement issue and

any further barriers of entry faced by many Indonesians, driving higher
financial inclusion and creating a more inclusive economy and society.

Written by

Herman Widjaja, Vice-President, Engineering, Tokopedia

Ramil Bansal, Investment Product Head, Tokopedia