Topic 1

How is Emotional Intelligence (EI) connected to Entrepreneurship?

Definition

Emotional intelligence (EI) refers to the capacity to identify, comprehend, and effectively manage one's emotions (Mayer and Salovey, 1997). During the last decades, Emotional Intelligence found interesting applications in the field of entrepreneurship, since research highlighted its role in recognizing opportunities for profit- or value-creation (Foo, 2011).

Emotional intelligence (EI) refers to the capacity to identify, comprehend, and effectively manage one’s emotions (Mayer and Salovey, 1997). It has found interesting applications in entrepreneurship, as research has highlighted its role in recognizing opportunities for profit- or value-creation (Foo, 2011).

Entrepreneurship involves making decisions in uncertain and high-risk situations, leading to the emergence of emotions due to demands, time constraints, and stress. Entrepreneurs need to regulate their emotions effectively during social interactions to achieve their objectives.

Individuals with high emotional intelligence demonstrate enhanced stress tolerance and utilize their emotional regulation skills effectively. They also display greater imagination, proactivity, and entrepreneurial intent, contributing to successful decision-making and overall life satisfaction.

Emotional Intelligence (EI)

Zampetakis et al. (2009) posit that Emotional Intelligence (EI) significantly shapes entrepreneurial conduct through two key mechanisms:

1. Enhanced self-perceptions

Emotional Intelligence (EI) enhances individuals’ self-perceptions of emotional effectiveness, particularly evident in heightened stress tolerance among those with high EI.

2. Increased affectivity

Emotional Intelligence (EI) cultivates increased affectivity, which is linked to greater levels of proactivity and creativity.

3. Empowering entrepreneurs

The direct and influential role of Emotional Intelligence (EI) in shaping entrepreneurial behavior highlights its pivotal significance in the entrepreneurial realm.

Benefits of Emotional Intelligence (EI) on Entrepreneurship

Among the benefits of Emotional Intelligence (EI) on entrepreneurship are (Bell, 2023):

Improving Communication Across Stakeholders

  • Understanding clients’ concerns and needs leads to successful agreements.
  • Addressing investor concerns empathetically fosters trust and secures financial support.
  • Building strong, lasting relationships is essential for business growth and success.

Fostering Robust Business Connections

  • Displaying empathy and gratitude cultivates a motivated and cohesive workforce.
  • Understanding and empathizing with others’ emotions helps construct influential professional networks.
  • Adeptly handling emotional aspects within disagreements fortifies business relationships.

Have you ever observed how you react when you are under pressure? Consider a stressful situation that you faced recently in your business and how did you respond. Would you have responded differently, if you could have regulated your turbulent emotions?