Emotions in economic activity: a case study of Polish entrepreneurs in the SME sector

Abstract

Purpose: The aim of this article is to comprehend the role of emotions in the business decision making process and to identify the influence of emotions on the economic behaviors of entrepreneurs, considering their satisfaction levels and ability to manage emotions in the workplace. Design/methodology/approach: The theoretical part of the study draws on a critical literature review, whereas the empirical one employs a diagnostic survey based on a questionnaire as a research tool. To analyse the data, descriptive statistics were obtained and a correlation study was performed. Findings: The study revealed that most of the entrepreneurs surveyed are satisfied with the conduct of business activities and that satisfaction is related to various economic behaviours. Entrepreneurs experience both positive (satisfaction, enthusiasm) and negative (anxiety, embarrassment) emotions. Positive emotions correlate with positive economic behaviors, while negative emotions have the opposite effect. Most entrepreneurs assess their emotional management abilities at least at an average level, but there are areas for improvement. There are differences in self-assessment of emotional control abilities before making business decisions among entrepreneurs. The presented conclusions suggest the necessity for ongoing enhancement of emotional competencies to bolster the positive development of enterprises. Research limitations/implications: Study limitations include the absence of longitudinal analysis, hindering the assessment of satisfaction and economic behavior dynamics. Future research should consider exploring external factors' impact on the relationship between satisfaction and economic behaviors, providing a more comprehensive analysis of contextual influences on entrepreneurs' decisions. Practical implications: Research results reveal significant connections between entrepreneurs' satisfaction and economic behaviors, emphasizing the role of emotions in business decisions. Practical implications recommend conscious emotion management, achieving work-life balance, and diversifying support. Entrepreneurs can benefit from implementing emotion management strategies, which can improve business efficiency, encourage innovation, and improve the handling of business challenges. Originality/value: This article introduces a holistic perspective on the interplay between entrepreneurs' satisfaction and economic behaviours, emphasising emotions' role in decision making. Its value lies in combining research on satisfaction, emotions, and their management, offering practical recommendations for both business practitioners and researchers interested in the psychological aspects of corporate functioning. Keywords: Emotions in business, economic behaviors, emotional management, behavioral finance. Category of the paper: Research paper.