Is emotional intelligence the hidden ingredient in startup success?

When people imagine a successful startup founder, they often picture someone with a brilliant idea, a sharp business plan, and the determination to work long hours. But new research from Spain suggests that another ingredient may be just as important: emotional intelligence.

A study published in Frontiers in Organizational Psychology examined how business incubators—programs designed to help startups grow—might influence the emotional development of the entrepreneurs they support. The researchers found that training, psychological support, and group activities in incubators appear to help founders strengthen their emotional intelligence, which in turn is tied to greater confidence and higher chances of business success.

Setting the Stage

The study was led by Debora De-Esteban-Escobar, Carmen De-Pablos-Heredero, Jose Luis Montes-Botella, and Francisco Jose Blanco-Jiménez of Rey Juan Carlos University in Madrid. Their investigation started with a simple observation: while business incubators often focus on technical and financial training, less attention has been given to how these environments affect the emotional side of entrepreneurship.

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Entrepreneurship is widely recognized as a stressful pursuit. Founders face financial uncertainty, long working hours, and the emotional highs and lows of trying to bring a new idea to life. Traditional economic research has typically emphasized factors like capital investment, market strategy, and experience. But over the past two decades, emotional factors such as confidence, resilience, and empathy have entered the conversation.

Emotional intelligence, or EI, is a term first popularized by psychologist Daniel Goleman in the 1990s. It describes a person’s ability to understand and manage their own emotions, as well as to navigate the emotions of others. In workplaces and leadership roles, high EI has been linked to better teamwork, communication, and decision-making. For entrepreneurs, it may be particularly valuable because it can help them stay calm during setbacks, maintain relationships with investors and employees, and adapt to rapidly changing environments.

Yet despite its relevance, few studies have examined how EI develops in the specific context of business incubators. These incubators offer mentorship, office space, and networking opportunities for startups, but the researchers wanted to know whether these programs also shape the founders’ emotional skills. Could the structure and culture of an incubator itself foster traits like empathy, confidence, and emotional control—and would that, in turn, make startups more successful?

The Investigation

To explore these questions, the research team conducted a mixed-method study between October 2023 and February 2024. They combined a review of existing academic literature with an empirical analysis of business incubators operating in Spain.

The researchers began by examining what is already known about emotional intelligence and entrepreneurship. They reviewed previous studies suggesting that people with higher EI tend to exhibit stronger communication and leadership skills, greater resilience under pressure, and more effective decision-making. These traits are often associated with improved business outcomes.

Building on this foundation, the team designed a structural equation model—a statistical method that allows researchers to analyze multiple relationships at once. They proposed four main hypotheses. The first was that incubator training programs would enhance entrepreneurs’ emotional intelligence. The second was that psychological support services within incubators would further strengthen it.

The third proposed that group dynamics, such as collaborative workshops and peer mentoring, would also play a role. Finally, they hypothesized that higher emotional intelligence would be linked to greater startup success, measured by outcomes like growth and survival rates.

To test these ideas, the researchers surveyed 84 business incubator managers across Spain. The survey asked about the types of support offered to entrepreneurs, such as training sessions, mentoring programs, and mental health services. It also included questions about how these programs might influence entrepreneurs’ emotional skills and overall confidence.

Once the data were collected, the team used specialized software (SmartPLS 4) to run their statistical analyses. This approach allowed them to evaluate how strongly each incubator activity was connected to changes in entrepreneurs’ emotional intelligence, and how these changes related to startup performance.

The results revealed a clear pattern. Training programs, psychological support, and group dynamics each showed a positive relationship with entrepreneurs’ emotional intelligence. The data also indicated that when incubators helped entrepreneurs build emotional skills, their startups tended to perform better. Startups led by emotionally skilled entrepreneurs were more likely to sustain operations, attract customers, and report growth.

In numerical terms, the model explained about 76 percent of the impact of incubator activities on emotional intelligence and 26 percent of the impact on entrepreneurial success. These percentages suggest that while emotional development is not the only factor in startup performance, it represents a meaningful part of the picture.

What the Findings Suggest

The results support a growing body of research linking emotional development to workplace success. In the incubator setting, training programs seem to go beyond teaching business theory. They help entrepreneurs develop awareness of how they react under stress and how to manage those emotions productively.

Psychological support services, such as coaching or counseling, appear to help founders maintain optimism and persistence during setbacks. Meanwhile, group activities provide a social network where entrepreneurs can share challenges, learn empathy, and build trust with peers.

According to the authors, these factors create an environment where entrepreneurs can learn both technical and emotional skills in tandem. The presence of mentors, team exercises, and networking sessions gives entrepreneurs a space to practice communication, collaboration, and adaptability—skills that become especially important when they face the unpredictable nature of early-stage business life.

The findings also point to a broader interpretation of what business incubators contribute to economic ecosystems. Traditionally, incubators have been evaluated based on measurable outcomes such as the number of companies launched, jobs created, or investments secured. This study suggests that their value may also lie in the psychological growth they foster. Entrepreneurs who leave incubators not only with a refined business plan but also with stronger emotional regulation may be better equipped to navigate future challenges.

Boundaries and New Directions

While the study presents strong correlations, the authors acknowledge several limitations. The data were collected only from Spanish incubators, which means the results may not reflect incubators operating under different cultural or economic conditions.

The information was also gathered through surveys, relying on self-reported data from managers rather than direct observation of entrepreneurs’ behavior. Because the study took a snapshot at a single point in time, it cannot capture how emotional intelligence or business success might evolve over longer periods.

The researchers also note that emotional intelligence is influenced by personal, social, and cultural factors that extend beyond professional training. Variables such as gender, socioeconomic background, and neurodiversity could shape how entrepreneurs experience and express emotion, yet these dimensions were not directly examined. Future studies could explore how these differences influence the relationship between emotional intelligence and startup outcomes.

Another open question involves how incubators can best integrate emotional development into their programs. Should they offer formal courses on leadership and stress management, or can emotional intelligence be strengthened more effectively through mentorship and peer learning? Long-term studies could track incubator alumni to see how emotional skills gained during the program affect their later business trajectories.

Looking Ahead

The findings from this research may have practical implications for entrepreneurship support systems and public policy. If emotional intelligence contributes to business resilience, incubators and policymakers could incorporate emotional skills training into their standard offerings. This might include coaching sessions on conflict resolution, workshops on self-awareness, or networking activities that promote trust and cooperation among founders.

At the same time, investors and business leaders might begin to consider emotional intelligence as a component of entrepreneurial readiness, alongside technical skills and market knowledge. By recognizing the emotional dimension of entrepreneurship, stakeholders can help create a more balanced support structure for new ventures.

In the broader context, the study adds to a shift in how entrepreneurship is understood. While early economic theories treated business creation as a rational pursuit of opportunity, more recent perspectives highlight that emotion plays a central role in motivation, decision-making, and leadership. Business incubators, by providing both material and emotional support, may represent one of the few environments where these dimensions come together.

The authors conclude that startup success may depend not only on access to funding or market knowledge but also on the entrepreneur’s ability to manage emotions, build relationships, and maintain confidence during uncertainty. In that sense, the incubator functions as both a training ground for business skills and a workshop for emotional growth.