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A few months ago the Founder of Erisko Foods was being interviewed on live Television and his utterances became a source of great debate on how to and how not to manage your emotions as an entrepreneur. In this article, we will take a closer look at what emotional intelligence is, why it is essential for entrepreneurs, and practical tips for developing your emotional intelligence.
What is Emotional Intelligence?
Emotional intelligence, often abbreviated as EI or EQ (emotional quotient), refers to the ability to recognize, understand, and manage our own emotions, as well as the emotions of others. The term was coined by psychologists Peter Salovey and John D. Mayer in 1990 and popularized by Daniel Goleman in his 1995 book “Emotional Intelligence.” Since then, this concept has gained significant traction in the business world. Goleman identifies five key components of emotional intelligence: self-awareness, self-regulation, motivation, empathy, and social skills.- Self-awareness involves being conscious of one’s own emotions and their impact on thoughts and behaviour.
- Self-regulation is the ability to control or redirect disruptive emotions and impulses.
- Motivation refers to the inner drive to achieve goals for reasons beyond external rewards
- Empathy is the ability to understand and share the feelings of others.
- Social skills have to do with everything related to managing relationships with others to move them in the desired direction.
Six Reasons Why Emotional Intelligence is Crucial for Entrepreneurs
1. Enhanced Leadership Skills
Entrepreneurs often wear multiple hats, including that of a leader. Effective leadership is not just about giving orders but about inspiring and motivating a team. Emotional intelligence allows entrepreneurs to understand their team’s emotions, providing the support and encouragement needed to foster a positive work environment. This is one area in which Tony Elumelu of UBA and Heirs Holdings excels in. He visibly exemplifies this by fostering a culture of empowerment and empathy within his enterprises, which has been a cornerstone of his leadership style.2. Improved Decision-Making
Entrepreneurs with high Emotional Intelligence are adept at making well-rounded decisions. They can manage stress, avoid emotional pitfalls, and think clearly while under pressure. This leads to better business outcomes, as by staying calm and collected, they can make more rational decisions rather than being swayed by emotional impulses.Sign up for the Connect Nigeria daily newsletter
3. Better Customer Relations
Customers are humans and also have emotions. In Nigeria, one of the common things many entrepreneurs complain about is the attitude of some customers. So, as an entrepreneur, understanding customer emotions and responding appropriately can significantly enhance customer satisfaction and loyalty. Entrepreneurs with high emotional intelligence can empathize with their customers, addressing concerns in a way that fosters trust and long-term relationships.4. Conflict Resolution
Conflicts are inevitable in business settings. Entrepreneurs with strong emotional intelligence are better equipped to handle disputes effectively, ensuring that resolutions are fair and that relationships are maintained. They can see multiple perspectives, empathize with all parties involved, and manage conflicts without escalating tensions.5. Increased Resilience
The entrepreneurial journey is filled with a lot of challenges and setbacks. These tend to make even the well-meaning entrepreneur want to call it quits. No wonder available statistics have it that most businesses close down within the first three years of being set up. Emotional intelligence helps entrepreneurs build resilience, allowing them to bounce back from setbacks with a positive attitude.6. Effective Networking
Building a strong network is essential for business growth. Entrepreneurs with high emotional intelligence are better at networking because they can read social cues, engage in meaningful conversations, and build genuine connections. These skills can lead to valuable partnerships and opportunities that might not be accessible otherwise.Tips for Building Emotional Intelligence
Having considered what emotional intelligence is and its usefulness in the journey of the entrepreneur, below are tips you can begin to apply to yourself to help you increase your emotional intelligence.- Start by becoming more aware of your own emotions. Regularly reflect on your feelings and consider how they influence your thoughts and actions. I have a group of undergraduates I provide mentorship to. This year, I introduced journalling to them and the feedback from them has been mind-blowing. So, you too can keep a journal to help you track your emotional patterns and identify areas for improvement.
- It is not enough to know about your emotions. You need to learn to manage your emotions and control your impulses, especially in stressful situations. Techniques such as deep breathing, meditation, and mindfulness can help you stay calm and composed. By controlling your emotional reactions, you can make more rational decisions and maintain professional relationships.
- Make a conscious effort to understand the perspectives of others. Put yourself in their shoes. Listen actively during conversations without interrupting, ask questions, and respond thoughtfully. Always try to see situations from their point of view. This will enhance your interpersonal skills and help you build stronger relationships.
- Engage in social interactions with a genuine interest in others. Practice open communication, maintain eye contact, and be mindful of your body language. Building strong social skills will improve your networking abilities and help you establish meaningful connections.
- Set clear, achievable goals and maintain a positive outlook. Even in the face of setbacks, focus on your long-term vision and the reasons why you started your entrepreneurial journey. Surround yourself with people and things that will influence you positively and seek continuous improvement in your personal and professional life. Staying motivated will inspire those around you and keep you moving forward.
- One other thing that has helped me in my journey is regularly seeking feedback from my Team and mentors. At least once every year, usually during my birthday, I circulate a survey form across to my Team and mentors asking them to provide me with feedback on my growth over time.
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Concluding Thoughts
Emotional intelligence is not just a buzzword; it is an important skill that can significantly impact your journey as an entrepreneur. Whether dealing with customers, dealing with investors, building a team, or making strategic decisions, the power of emotional intelligence can transform challenges into opportunities and drive sustainable growth for your business. So, embrace it today!Featured Image Source: Simply Psychology
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