EQ is the special ingredient to feed entrepreneurial success
Research from the Indiana University Kelley School of Business found that IQ is unquestionably the better predictor of job performance and career success across all jobs and careers. However, within the domain of entrepreneurship, emotional intelligence — the ability to understand, use and manage emotions to relieve stress — was found to be the stronger predictor of success.
The findings were based on an empirical review of nearly 40 previous studies and a meta-analysis of 65,826 entrepreneurs observed through that research.
The research found that those with higher EQ are better able to self-motivate and recognize opportunities.
Higher EQ leads to better social skills, such as perceiving other’s needs, making good first impressions, and influencing others in interpersonal interactions that all help in developing business networks and signaling legitimacy.
Finally, EQ more than other competencies, such as IQ, was found to help in handling the “high uncertainty and ambiguity” and crisis resolution often involved with entrepreneurship.
“Being an entrepreneur is not a ‘traditional workplace setting,’” said Regan Stevenson, assistant professor of entrepreneurship and management and the John and Donna Shoemaker Faculty Fellow in Entrepreneurship, in a statement. “If you are an entrepreneur, you know that managing your business can often feel like you are screaming alone on an emotional rollercoaster.”
Daniel Goleman’s best-selling 1995 book, “Emotional Intelligence: Why It Can Matter More Than IQ,” is credited with igniting the debate around the benefits of EQ versus IQ for leadership.
The benefits of a high-IQ include critical thinking, problem solving and the attentional focus that can drive breakthrough innovation. Yet a number of recent articles likewise roundly promote the value of soft skills during challenging times.
In a 2011 Time Magazine article, Mr. Goleman said his EQ theory had been misinterpreted by many. He agreed that high-IQ is a “better determinant of career success,” but argued relationship-building becomes more essential once the executive or employee reaches a certain level. He wrote, “In a high-IQ job pool, soft skills like discipline, drive and empathy mark those who emerge as outstanding.”
Entrepreneurs benefit more from emotional intelligence than other competencies, such as IQ – Indiana University Kelley School of Business https://blog.kelley.iu.edu/2021/01/28/entrepreneurs-benefit-more-from-emotional-intelligence-than-other-competencies-such-as-iq/
- They’ve Taken Emotional Intelligence Too Far – Time Magazine
- What’s More Important, EQ or IQ? It’s More Complex Than You Think – INC
- The EQ Factor – Time Magazine
- Why More ‘Emotional Intelligence’ Means More Money for Entrepreneurs – Entrepreneur
- 5 Reasons Why Emotional Intelligence Is the Future of Work – Entrepreneur
- Tough Times Call For Emotionally Intelligent CEOs – Forbes
- What Makes a Leader? – Harvard Business Review
DISCUSSION QUESTIONS: In what ways have you seen EQ being key to entrepreneurial success vs. IQ? Do you find EQ or IQ is more overrated as a driver of effective leadership?