The Crucial Importance of Emotions To Your Business Success

As an entrepreneur, have you ever considered how your emotions and your interpersonal relationships affect your business success?  If not, you need to.  Here’s what the research tells us about the inability to effectively manage both:

  • Production will decrease.
  • Profits will decrease.
  • Business growth will decrease.
  • Morale will decrease


It wasn’t that long ago that an entrepreneur’s emotional quotient (EQ) was considered fluff and unnecessary to their business success. In fact, emotional dynamics were often ignored.  Indeed, people assumed that the sole source of success was their intelligence quotient (IQ).

However, decades of research now point to emotional intelligence as the critical factor that sets star performers apart from the rest of the pack.  A brilliant person with a low EQ is unlikely to achieve the same business success as someone who has a high EQ and an average IQ. Ninety percent of top performers have high emotional intelligence!

EQ and IQ

What is emotional intelligence?  EQ is the ability to identify, understand and manage emotions in positive ways for the purpose of relieving stress, empathizing with others, defusing conflict, managing behavior and communicating effectively.  Your EQ is comprised of two primary competencies: personal competence and social competence.

IQ is your ability to learn.

Let’s take a brief look at the relationship between your EQ and your IQ.

  • There is no known connection between them.
  • One cannot predict emotional intelligence based on how smart they are.
  • Your IQ remains the same throughout your life.
  • Emotional intelligence is a set of skills that can be acquired and improved with practice.
  • EQ requires effective communication between the emotional and rational centers of the brain.


When evaluating their business ups and downs, typically entrepreneurs fail to consider the crucial role that their emotional intelligence plays. In order to better understand why 96 percent of businesses fail within 10 years, we need to look at the “whole” entrepreneur, which includes both their business savvy as well as their emotional intelligence. 

The good news is that your emotional intelligence can be developed and enhanced.

The bottom line is that entrepreneurs with high EQs make more money than those with low EQs.