How Do Entrepreneurs’ Emotional Intelligence and Transformational Leadership Orientation Impact New Ventures’ Growth?*

Abstract

Abstract This study examines the interrelations between entrepreneurs’ emotional intelligence (EI), transformational leadership behaviors and growth. Based on data collected from 99 entrepreneurial firms, the findings show that entrepreneurs’ EI has an indirect impact on growth. Entrepreneurs’ EI is positively related to entrepreneurs’ intellectual stimulation and individualized consideration and entrepreneurs’ charismatic inspirational behaviors. However, only entrepreneurs’ charismatic-inspirational behaviors impact growth. The findings extend the literature by suggesting that entrepreneurs’ EI is a “latent” emotional capability that impacts their transformational leadership orientation. It is also suggested that by employing charismatic-inspirational behaviors, entrepreneurs’ demonstrate their ability to enlist and manage followers’ emotions and hence influence growth.