IQ predicts academic performance and earning potential, which is why it has long been considered a benchmark for success. However, as the entrepreneurial journey shows, IQ alone is not enough. Emotional intelligence increasingly sets successful individuals apart, particularly for leaders and entrepreneurs.

The role of IQ in career foundations

IQ is essential in laying the groundwork for specific career paths. It determines whether someone possesses the cognitive abilities to meet the rigorous demands of particular fields. A medical doctor, for instance, requires a high IQ to handle the complexities of medical training. Likewise, computer engineers need strong analytical skills to solve technical problems and innovate. However, once individuals with high IQs enter these fields, the differences between their performances are rarely due to IQ alone.

IQ becomes less of a differentiator in highly skilled professions, where all individuals meet the requisite cognitive benchmarks. The real game-changer is emotional intelligence (EI), the ability to recognise, understand, and respond to emotions in oneself and others. This skill set determines how effectively someone can collaborate, lead, and build lasting relationships.

Why entrepreneurs need EI

Entrepreneurship uniquely underscores the importance of EI. Founders often need to inspire others to take risks and join their vision, especially in the early stages when resources are scarce and the future is uncertain. This requires more than technical skills or a sharp mind. It requires connecting with others on a human level, understanding their fears, motivations, and goals, and influencing them toward a shared objective.

Building a startup is inherently stressful. Entrepreneurs must manage rapid growth, financing challenges, and investor relations. Negotiation is key to the journey, whether convincing a venture capitalist to fund their idea, motivating employees to stay committed despite long hours, or navigating partnerships that require compromise and tact. These are grounded in EI, which equips entrepreneurs to manage their emotions, remain composed under pressure, and foster trust in their teams and stakeholders.

IQ and EI: are they related?

Interestingly, IQ and EI are not thought to be related. A study by Treglown and Furnham (2023) found that nearly all correlations between IQ and trait emotional intelligence were minimal and, in some cases, negative, with coefficients ranging from -0.07 to -0.12.

This suggests that individuals with higher IQs may not necessarily possess higher EI; in some cases, they may even have lower EI. One hypothesis is that individuals with high IQs might develop a sense of self-reliance or perceived superiority, leading them to undervalue the importance of emotional and social skills. This can result in challenges when collaborating with others or leading teams, as effective leadership often requires empathy, emotional regulation, and interpersonal communication, areas where EI is essential. Those with exceptional cognitive abilities may believe they can solve problems independently and dismiss the need to collaborate or seek input from others. This mindset can hinder entrepreneurial growth, which relies on bringing together people with different skill sets.

While IQ remains relatively stable, EI can be developed with training. This is good news for entrepreneurs and leaders looking to enhance their interpersonal effectiveness. By improving their EI, individuals can overcome challenges such as poor communication, inability to manage stress, or a lack of empathy, which are barriers that IQ alone cannot solve.

EI as the differentiator

Emotional intelligence isn’t a “nice-to-have” skill; it’s a necessity. For entrepreneurs, leaders, and professionals alike, EI defines how well they inspire trust, adapt to change, and cultivate meaningful relationships. IQ may help someone enter a profession, but EI determines how far they’ll go once they’re there.

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