The Role of Emotional Intelligence in Effective Business Leadership: The Case of Small Business Owners in San Pedro City Laguna

Abstract

This study focused on investigating the relationship between emotional intelligence and key business performance metrics, such as profitability, employee retention, customer satisfaction, and leadership effectiveness. The researcher utilized the descriptive-correlational research design to determine the relationship between Emotional Intelligence and emotional intelligence and key business performance metrics, such as profitability, employee retention, customer satisfaction, and leadership effectiveness among the selected small business owners in San Pedro, Laguna. Based on the result, it was concluded that small business owners demonstrate a strong level of emotional intelligence, which encompasses skills such as recognizing and managing emotions, as well as understanding others. Emotional intelligence does not have a significant impact on profitability among the selected small business owners in San Pedro City, Laguna. Those who have higher levels of emotional intelligence are more likely to have better employee retention rates. Emotional intelligence does not have a direct impact on client satisfaction and lastly, emotional intelligence does not have a significant impact on the leadership effectiveness of small business owners in San Pedro Laguna. Thus, it is recommended that the small business owners in San Pedro Laguna focus on developing emotional intelligence skills, while also considering other factors such as market conditions, pricing strategies, and operational efficiency for profitability. Creating a positive work environment, enhancing client satisfaction through various factors, and taking a holistic approach to leadership development are also suggested.