We already know the secret to being a successful entrepreneur

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Entrepreneurs have a key role to play in realizing the United Nations 2030 Agenda for Sustainable Development.

This action plan, which has been adopted by all UN member countries, was created to address “today’s most pressing social, economic and environmental challenges”.

While governments play a central role in achieving these goals, nonprofits and businesses can accelerate this progress through innovation. This is where entrepreneurs – anyone who starts or owns a business – come in.

Recent research on how social emotional intelligence affects entrepreneurship can help nations achieve this.

about the study

Using data on entrepreneurial activity from the Global Entrepreneurship Monitor in 24 countries, the study found that entrepreneurship flourishes when individuals in society have higher levels of well-beingadaptability, self-control and sociability.

These are characteristics of social emotional intelligence – a measure of the collective emotional intelligence of a given society. Emotional intelligence refers to an individual’s ability to recognize and understand their own emotions, as well as the emotions of others, and use this knowledge to make decisions.

At the social level, emotional intelligence plays an essential role in meeting the challenges present at different stages of the entrepreneurial process, such as idea generation, launch planning and business growth.

However, the degree to which each emotional intelligence trait impacts entrepreneurship depends on the type of entrepreneurship.

Research has found that three traits of socio-emotional intelligence are most likely to promote entrepreneurship: hedonic well-being, adaptability, and self-control. Business entrepreneurship leads to innovation that contributes to the economic growth of a country through the creation of wealth.

1. Hedonic well-being

Hedonic well-being is one of two types of perceived well-being. It refers to an individual’s perception of their own satisfaction, happiness, optimism, and self-esteem.

Hedonic well-being can help individuals cope with difficult situations that arise when working as an entrepreneur, giving them a sense of control over their situation.

People with a high level of hedonic well-being are more likely have characteristics associated with successful business entrepreneurs.

2. Adaptability

People with a high level of adaptability are open to new information, eager to give up preconceived ideas and able to adapt to new or difficult situations.

An individual’s ability to adapt in the face of adversity sets them apart as exceptional. Highly successful people generally have higher levels of adaptability.

In the context of business entrepreneurship, having a high degree of adaptability enables entrepreneurs to navigate uncertainty and adapt to changes in the business environment.

3. Self-control

Self-mastery is a mental process that helps individuals align their thoughts and behavior with their goals, especially in times of adversity.

Self-control is beneficial for business entrepreneurs because it encourages them to become aware of the strategies needed to keep your goals aligned with the ever-changing business environment.

Because self-control is valuable for running business enterprises, societies that have more individuals with higher levels of self-control are more likely to facilitate business entrepreneurship.
Foster social entrepreneurship

Research has found that two social emotional intelligence traits are more likely to promote social entrepreneurship: eudemonic well-being and sociability. Social entrepreneurship, as mentioned earlier, leads to innovation that addresses social issues.

1. Eudaimonic well-being

Eudaemonic well-being refers to an individual’s perceived autonomy, self-acceptance, sense of purpose, and ability to manage their environment.

Characteristics associated with eudaimonic well-being motivate individuals to do major contributions to well-being others with social entrepreneurship.

Although eudaimonic well-being characteristics are essential for both types of entrepreneurship, societies with higher levels of eudaimonic well-being tend to foster a more conducive environment for social entrepreneurship.

2. Sociability

The American Psychological Association defines sociability as the tendency to “look for companyengaging in interpersonal relationships and participating in social activities”.

Sociability has three facets: social awareness, emotional management and assertiveness. It plays a greater role in social entrepreneurship, so societies with more individuals with this trait are more likely to facilitate social entrepreneurship.

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