**<mark>Summary (Section 2.3):</mark>** _<mark>Despite limited empirical studies about the stressors experienced by entrepreneurs in developing and FCV‐affected countries, the literature suggests that the combination of entrepreneurial stressors (role conflict, ambiguity and overload) and external environment uncertainties due to factors such as natural disasters, conflict or migration, can negatively affect the functioning of the entrepreneur at various levels. This requires a better understanding of how to increase the psychological (cognitive and behavioral) capacities of entrepreneurs working in these regions so that they can deal with the increasing number of challenges while persisting in growing their businesses.</mark>_

<mark>Since stress depletes psychological resources, the next section will examine strategies to (re‐)build psychological capital to mitigate such stress. As part of this effort, the study will identify and evaluate the various interventions and training curricula that have been tried and tested in the field of psychology through rigorous impact evaluations. The goal is to identify approaches that might be useful for SME entrepreneurs who must find an effective means of functioning in high risk environments.</mark>

# 3.   Strategies to (Re‐)Build Psychological Capital for Stress Mitigation

<mark>Psychologically healthy, thriving entrepreneurs not only benefit themselves. They are critical to employee well‐being and business outcomes. As stress depletes psychological resources, a key question becomes how to rebuild these capabilities. One way to think about it is to view it from the lens of an entrepreneur, that is, through different “types of capital”. A successful entrepreneur would possess four sources of capital: financial, technical, relational and psychological. Since stress depletes psychological resources and through that, the other forms of capital, the role of psychological capital (and mindfulness) should be examined as a means of mitigating the effects of stress.</mark> <mark>The literature shows that psychological capital can play a mediating role in stress mitigation by promoting positive psychological responses to stressful situations (Luthan, Youssef, and Avolio 2009). The development of the psychological capital of entrepreneurs may help them to build resistance against a wide range of psychological stressors as they seek to lead new ventures and/or further develop well‐established ventures. In this context, Hmieleski and Carr (2007) investigated the relationship between the psychological capital and work tension of entrepreneurs regarding their level of job satisfaction. They used a national random sample of 144 founders in the United States who were the top management team leaders of their new ventures and found it to be significantly negative. The study found that psychological capital can reduce the negative effects of work tension on job satisfaction.</mark> <mark>Using a meta‐analysis of 51 independent samples, psychological capital is shown to have a strong positive relationship with desirable attitudes and behaviors (Avey and others 2010). Other studies have found that increasing/strengthening the psychological capital of the owner/manager positively impacts the psychological capital of employees (Story and other 2013), as well as levels of trust and perceived performance among employees (Norman and</mark> 19