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Why Emotional Intelligence is Crucial for Entrepreneurship

When it comes to business, lots of people assume that the smartest entrepreneurs are the ones who win. Intelligence, it is assumed, is the key factor in determining success. But while general smarts are certainly important, they’re far from the only thing setting successful entrepreneurs apart. When it comes to starting your own business, it […]

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Vinu Natarajan - Emotions

When it comes to business, lots of people assume that the smartest entrepreneurs are the ones who win. Intelligence, it is assumed, is the key factor in determining success. But while general smarts are certainly important, they’re far from the only thing setting successful entrepreneurs apart. When it comes to starting your own business, it seems that emotional intelligence is actually more important than general IQ. Here are a few reasons why.

Social Skills Make Networking Easier

Starting a new business requires lots of contacts in a number of fields. A typical entrepreneur will have contacts within their own industry, as well as people involved in marketing, shipping, logistics, and a number of other areas. In order to find so many trustworthy contacts, you need to have decent social skills. Understanding how you can help others so that they’ll help you is a key skill for an entrepreneur. You have to accept the basic premise that everyone could be a useful contact if you understand their goals and motivations. This comes a lot easier to someone with high emotional intelligence.

Empathy Makes You A Better Leader

When you run a company, your biggest asset is the people working under you. Successful entrepreneurs know how to harness the energy, knowledge, and abilities of the people they hire. One way they get the best out of their workers is by remaining empathetic. People respond best to bosses who acknowledge their problems and respect their humanity. For an entrepreneur with high emotional intelligence, treating employees with respect and looking out for their interests is all second nature.

Emotional Intelligence Makes For Better Relationships

Success in business is built upon strong relationships. A good entrepreneur will forge lasting connections with colleagues, partners, customers, and employees. They use their emotional intelligence to really understand the people around them. They’ll recognize that their contacts are people first and businesspeople second. This understanding will take them much farther in the business world than general IQ ever could.

If you’re looking to run your own business, then being able to read charts, graphs, and earnings statements isn’t nearly as important as the ability to read the human soul. That’s why emotional intelligence is so important.

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