2020 – economically a year like no other
Health has dominated. However, the critical correlation with economics has become obvious as lockdown caused an immediate 25% economic shrinkage. This is due to huge reductions in investment, consumption and exports. To put it into context, the 2008 financial crisis produced 6% economic shrinkage. But the current prediction is that the impact of the 2020 shrinkage will not last as long as 2008, when it took the economy 6 years to recover – we are now looking at 2022 to return to our pre-pandemic size.
The Government has introduced business financial support in many forms like Business Bounce Back Loans, for example, but these bail outs have been unable to help every business. 20% of Directors are not eligible for any support to assist in re-stimulating the economy. An ongoing drag on growth is created as any debt taken on needs to be serviced. And recovery will take time as capacity is reduced by what is possible with social distancing. There has also been the huge scarring effect of unemployment in the leisure, hospitality and retail sectors.
The role of confidence
The biggest casualty, after the devastating loss of lives, is the damage to confidence which is at the lowest on record at a macro level: consumer confidence, business confidence and investment confidence. Business strategies are more defensive, there are fewer aggressive growth plans and people are just more cautious. Confidence drives our economy and we need it back quickly!
The Alison Rose Review of Female Entrepreneurship estimated that an additional £250 billion could be contributed to the UK economy if female entrepreneurs started and scaled their businesses at the same rate as men. McKinsey quote £150 billion. Either way, the UK economy would value that contribution and it would strengthen the UK as a world leader in innovation.
As a coach, I experience in the moment the effect the system is having on clients and what is beneath the surface. The common coaching themes from partnering women entrepreneurs in 2020 are:
- Personal confidence/imposter syndrome/comparing self to others
- Anchoring in greater purpose and resisting external influences in different directions
- Unknowns and uncertainty as an adventure
- Resilience for the long haul
Coaching provides time and space to think deeply, enables creativity and clarity and generates insights as well as exploring how to ‘test and learn’ between sessions. It encourages self-responsibility and holds us to account on things that are important and need to happen in specific timescales. Through support and challenge these women entrepreneurs have become more aware, prepared, empowered and confident to navigate the challenges at a personal, team and business level. In almost all instances, this is about leveraging connections and collaborations to restore this confidence.
Like the Covid-19 virus, emotions are contagious. Our brains are wirelessly connected, which means we do not process the world individually, but we co-process and co-create it from the emotions we receive from others as well as the emotions we transmit. Negative emotions trump positive ones as negative emotions are stronger – our brains are wired to keep us safe.
Working with a coach is to the mind like working with a personal trainer is to the body. You get better results quicker – a stronger, more confident brain. By living beyond emotional reactivity to others’ emotions, and by accelerating and dialling up confidence, these women trailblazers have a significant part to play in influencing and providing economic stimulation.
Coaching boosts confidence which is contagious and vital to economic recovery.
Curious to find out more?
I coach modern leaders, teams and women entrepreneurs in dynamic growing businesses: Clever people who need to accelerate their leadership maturity, impact and performance to achieve great purpose and influence wider systems for positive change.
Clients trust me to help them get great results and show a return on investment.
If you would be curious to learn how coaching could benefit you, your team or your business, let’s connect:
victoria@coxenconsultandcoach.com
07812 037728
Interested in Women in Innovation/women entrepreneurs?
My partnerships as Coach in Residence for Knowledge Transfer Network, Women in Innovation, Edinburgh Innovations, NatWest Back Her Business and SETsquared Bristol are powerful collaborations connecting people, teams, businesses and systems to stimulate our economy:
https://ktn-uk.co.uk/programmes/women-in-innovation
https://www.gov.uk/government/news/women-in-innovation-2020-new-funding-announced
https://www.natwestbackherbusiness.co.uk
https://www.edinburgh-innovations.ed.ac.uk
https://www.setsquared-bristol.co.uk
“Thank you for your work and your questioning and listening presence throughout the Power Her Up programme. The hard work of deepening our listening and thinking often needs encouragement but it is vital in PHUp where we having been venturing towards clearer personal and professional identity and purpose. Working-life gets reduced to volume metrics and anxiety, but by questioning it can become a place of fulfilment and balance, the proper aims of the gender movement. In just 3 weeks our cohort has named and begun to remove limiting beliefs, they have moved from inspiration to intention and action. As we transition out of the programme I am grateful that the work continues with a Coach in Residence of your competence and compassion”. Dr Thane Campbell, Venture Science Doctorate Project Officer, Edinburgh Innovations, University of Edinburgh
Thanks to Tej Parikh, Chief Economist, at the IoD for the economic picture
