The Importance of Emotional Intelligence of Leadersfor Entrepreneurial Success: The Case of Tunisian SMEs

Purpose: The main purpose of this study is to explore the role of emotional intelligence (EI) in enhancing the performance and overall success of Small and Medium-sized Enterprises (SMEs) in Tunisia. While traditional research has focused on financial, strategic, and operational factors in business success, this study shifts the lens toward emotional and psychological competencies of SME leaders. Specifically, it distinguishes between intrapersonal EI (self-awareness and self-regulation) and interpersonal EI (social awareness and relationship management) to examine their individual contributions to entrepreneurial achievement. The study seeks to answer the following research question: To what extent does emotional intelligence influence the success of SME leaders in the Tunisian context. Design/methodology/approach: This research adopts a quantitative methodology grounded in a positivist paradigm. A structured questionnaire, based on validated emotional intelligence and business performance scales, was distributed to 131 SME leaders operating in various sectors across Tunisia. The collected data underwent statistical processing through Principal Component Analysis (PCA) to extract the key dimensions of emotional intelligence. Following the validation of these dimensions, linear regression analysis was employed to test the relationship between intrapersonal/interpersonal EI and entrepreneurial success. The study controlled for variables such as sector, company size, and years of managerial experience to ensure the robustness of the findings. Findings: The results show a statistically significant and positive relationship between both components of emotional intelligence and entrepreneurial success. Intrapersonal EI—characterized by a leader's ability to understand and manage their own emotions—was found to contribute to better decision-making, stress management, and resilience. Interpersonal EI—related to understanding and influencing others’ emotions—enhanced communication, conflict resolution, and team motivation. Together, these emotional competencies were linked to higher levels of business performance, innovation, and employee satisfaction, underscoring their value in the Tunisian SME landscape. Practical implications: The findings suggest that emotional intelligence is not only a personal trait but also a managerial asset with practical value for improving organizational outcomes. For policymakers, educators, and business support institutions in Tunisia, this implies the need to incorporate emotional intelligence training into entrepreneurship development programs. For SME owners and managers, developing EI competencies can lead to improved leadership effectiveness, employee engagement, and customer relations. This research can also guide HR professionals in recruiting and training leaders who possess strong emotional competencies, particularly in fast-changing or uncertain environments. Originality/value: This study fills an important gap in the literature by empirically examining the impact of emotional intelligence on business success in an emerging market context, which remains underexplored in academic research. Unlike prior studies conducted mostly in Western countries or large corporations, this research focuses on SMEs in Tunisia, providing culturally relevant insights. Moreover, by distinguishing between intrapersonal and interpersonal EI, the study adds nuance to how emotional intelligence operates in entrepreneurial settings. The originality also lies in its methodological combination of PCA and regression analysis to validate the proposed model and generate actionable insights.