A review of current literature revealed that internal managerial capabilities (i.e., managerial inadequacy, incompetence, inexperience, expectations, control, and financial shortcomings) are the primary factors involved in business failure and approximately 50 percent of all small businesses fail within the first 5 years. Therefore, the purpose of this study was to conduct a full organizational intelligence quotient (OIQ) assessment that correlates business performance to OIQ and identify which areas of organizational strengths and weaknesses relate to the decision-making processes of Hispanic entrepreneurs. The critical research questions involved exploring whether Hispanic entrepreneurs exhibit attitudes and habits of smart organizations and are able to routinely make and formulate quality decisions to compete and survive. The theoretical foundation of the study was the knowledge-based theory (KBT), emphasizing knowledge as the internal force that drives organizations' innovative capabilities. In this quantitative study, an OIQ survey was conducted on a convenience sample of 96 Hispanic business owners. Data were analyzed calculating an average OIQ. An OIQ of 100 (at the 50^th percentile) with 15 IQ points per standard deviation is insufficient to succeed in a competitive market. The findings demonstrated that Hispanic entrepreneurs have an OIQ of 96 and, therefore, did not exhibit the attitudes and habits of smart organizations; consequently, they are more likely to encounter barriers in their ability to routinely make and formulate quality decisions. This study contributes to social change by identifying the areas of organizational strengths and weakness that helped Hispanic entrepreneurs improved their decision making process, thus strengthening their internal managerial capabilities to better compete and survive in the face of changing circumstances.