Dr. David Lenihan, Ph.D., J.D., MBA is the CEO/Cofounder of Tiber Health and the CEO of Ponce Health Sciences University.
The Wall Street Journal’s “Science of Success” columnist Ben Cohen recently wrote a piece called “The Investor Betting on People In Their 50s and 60s—Because Older Is Better.” In it, he examines the work of Katerina Stroponiati’s venture fund Brilliant Minds, which invests in companies run by entrepreneurs who are 50 years old or older. The reasons are varied and valid.
Cohen says that older founders have many advantages, including connections: “They have credibility. They have industry experience, domain expertise, and the kind of relationships that can take years to cultivate. They’ve seen it all, so they can spot opportunities that others miss. They know the rules of their business—and how to break them. They also know which problems need to be solved because they have encountered those problems too many times themselves.”
There are other benefits to being an older entrepreneur, too. In a study by the Organization for Economic Cooperation and Development called “Senior Entrepreneurship,” the author Teemu Kautonen says older entrepreneurs are in “a stronger financial position to fund their business” than younger ones. According to the U.S. Chamber of Commerce, “in a 2018 survey of more than 2,000 businesses by the Kauffman Foundation, 32% of startup owners under age 45 said getting a business license was difficult, a process that confounded only 23% of older entrepreneurs.” Additionally, the Berlin-based Stiftung Entrepreneurship foundation asserts that “older people tend to have a better life-work balance. They budget more towards leisure and know the importance of dividing the time spent at work and the time spent with their families. Although some might require more time to perform certain tasks, they do them more accurately.”
I agree with the above perspectives on older entrepreneurs’ capabilities, preparedness and poise. But a tremendous edge these business builders can possess that hasn’t been analyzed or discussed is their exceptional emotional intelligence (EQ).
A strong EQ—or the ability to understand, use and manage your emotions positively—is crucial for building strong relationships, improving communication and navigating obstacles effectively. It involves elements like self-awareness, empathy and social skills. Regarding older entrepreneurs, the EQ many have nurtured over their careers allows them to steadily navigate the constant ebb and flow of their business journeys without reacting too intensely to inevitable fluctuations.
I can illustrate my own EQ growth based on my lively entrepreneurial travels: When there was a big win in the early days of my career, effusive celebrations with my team were off the charts. High fives! Yelps of joy! Par-tay! Given our achievements’ magnitude, I believed such joyousness to be appropriate. On the flip side, when things went south, I was a maniac—raging, breaking stuff around the office, lots of acting out. It wasn’t pretty and it wasn’t helpful.
As I got older, the edges smoothed out and my reactions to the daily oscillations of commerce were more balanced. Accomplishments were savored, but we needed to stay centered and maintain our path. Challenges were, well, challenging, but we had to figure out how to resolve them and continue forward. Do I still occasionally go off the rails? A bit, but I catch myself when it’s about to happen, and I can quickly regain my focus to get back on track. This ability is a result of the EQ skills that I’ve developed.
The growth in my EQ, along with the EQ in other veteran entrepreneurs, is indispensable to the harmonious running of an organization. Maybe we augment this skill because we learn to focus less on our egos and more on our teams. Or maybe our maturity increases as the lengths of our business expeditions also increase. Or maybe we’ve figured out how to better conserve our energy, maintain our priorities and attain greater self-awareness. My bet is that most older entrepreneurs aren’t familiar with EQ or have not taken the steps to expand it purposefully. Instead, I believe that profitable and seasoned business owners who have open minds and embrace lifelong learning have naturally acquired it.
EQ allows die-hard entrepreneurs to stay in the game, support their families and communities and achieve prosperity for themselves and their teams. I believe it’s the secret sauce behind the success of older entrepreneurs.
Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?
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