THE IMPACT OF EMOTIONAL INTELLIGENCE AND TRANSFORMATIONAL LEADERSHIP TOWARDS MSME SUCCESS

Abstract

Entrepreneurs act as core drivers of growth of a nation by being leaders and innovators. Indonesia’s MSME make up 99% of all businesses in the country, and the owners of these enterprises are entrepreneurs who acts as leaders. Considering the number of MSME in Indonesia, entrepreneurs need to ensure their enterprises are successful. Through a survey by OECD the number is sure to grow as many younger generations of Indonesians are willing to open up new businesses. Having an effective leader who possesses high enough emotional intelligence to empower his/herself and others through pressure is needed for business to attain success. A good leader requires high emotional intelligence to be able to promote an environment that accommodates learning and growth. A leader that can accommodate others and produce members who can work effectively beyond expectations is called a transformative leader. With the high risk and pressure of being in a business people are afraid of the risks and choose to avoid it. With the help of emotional intelligent members, others in the business would be able to cope with the stress and could work more effectively and efficiently. Ciputra University is an entrepreneurship university meaning it has a concentrated amount of potential entrepreneurs, making it a good candidate to be used as a sample for the research. The research was done to understand effect of emotional intelligence and transformational leadership on MSME success. IBM SPSS Statistics 22 program was used to analyze the data. Data was collected using questionnaires with a five- point Likert scale. The population for this research was 242 students from Ciputra University and the sample was 149 samples. Through this research it was found that both emotional intelligence and transformational leadership positively and significantly influence MSME Success. The result of this research can be used as a way to develop the required skills of an entrepreneur in order to have a successful Micro-Small-Medium-Enterprise.