Emotional Intelligence in Leadership

exploring how SME leaders in Spain apply emotional competences in practice

Abstract

This study explores how leaders of small and medium-sized enterprises (SMEs) in Spain understand, apply, and develop emotional intelligence (EI) in their daily leadership practice. Emotional intelligence has been widely linked to effective leadership, but there is limited research on its role in SMEs, where informal structures and close interpersonal dynamics shape management practices.  The aim of the study was to examine how SME leaders perceive EI, identify key emotional competences, and understand how these are applied in areas such as team management, conflict resolution, and decision-making. A qualitative, interpretative approach was adopted, using semi-structured interviews with eight SME leaders from diverse sectors. Data were analysed thematically.  Findings indicate that competences such as empathy, self-regulation, and communication are perceived as essential for maintaining team cohesion and navigating high-pressure situations. However, EI is largely developed intuitively and experientially rather than through formal training. The study also highlights tensions in emotional leadership, such as balancing closeness with authority.  These findings suggest a need for accessible, practice-oriented training tailored to SMEs and contribute contextualised evidence to the literature on emotional intelligence and leadership in small business environments.