Emotional Intelligence, Long-Term Orientation, Longevity SMEs

SMEs are one of the key pillars of Indonesia’s economy and a fundamental catalyst for driving decent work, inclusive economic growth, and industrial innovation. However, as many SMEs working in the F&B industry would know, it’s not easy to keep your business afloat following those first few years post-setup. This research examines the role of emotional intelligence (EI) and long-term orientation (LTO) on SME survival using Stewardship Theory as the theoretical framework. Quantitative survey responses from 107 SME owner-managers are analyzed using Partial Least Squares–Structural Equation Modelling (PLS-SEM) to examine relationships, direct and mediating. Findings show that EI significantly contributes to long term business survival directly and indirectly, mediated through LTO. Leaders with emotional attunement are more adept at creating loyalty/trust, handling stress, and directing team motivation for long-term returns. The results expand Stewardship Theory by casting EI as a psychological driver that facilitates strategic foresight and organizational commitment. For practitioners, the research highlights the need to cultivate emotional and relational capabilities to enhance SMEs’ capacity for adaptation and resilience, key factors of sustainable enterprises that promote decent work, economic development and industry innovation. This basis expands our knowledge of how inner leadership traits affect developing economy business sustainability in the long run.