Entrepreneurship Management

Theory of High Achievement/Theory

of Achievement Motivation
McClelland identified 2 characteristics of
entrepreneurshipDoing things in a new
and better wayDecision making under
uncertaintyHe stressed that people with
high achievement orientation (needto
succeed) were more likely to become
entrepreneursSuch people are not influenced
by money or external incentivesThey
consider profit to be a measure of success
andcompetency

Entrepreneurship Management
Motivation theory by McClelland (AcquiredNeeds
theory)

According to McClelland, a person has three

types of needs at anygiven time, which are:
Need for achievement (get success with ones
own efforts)Need for power (to dominate,
influence others)Need for affiliation
(maintain friendly relations with others)The
need for achievement is the highest for
entrepreneurs

Entrepreneurship Management
The Kakinada Experiment
Conducted by McClelland in America,
Mexico and MumbaiUnder this experiment,

young adults were selected and putthrough a

three month training programmeThe training
aimed at inducing the achievement
motivationThe course contents were
Trainees were asked to control their thinking
and talkto themselves, positivelyThey
imagined themselves in need of
challenges andsuccess for which they had to
set planned andachievable goalsThey strived
to get concrete and frequent feedbackThey
tried to imitate their role models/those
whoperformed well

Entrepreneurship Management
Conclusions of the experiment:Traditional
beliefs do not inhibit an entrepreneur
Suitable training can provide necessary

motivation to anentrepreneurThe
achievement motivation had a positive impact
on theperformance of the participantsIt was
the Kakinada experiment that made people
realise theimportance of EDP (Entrepreneurial
Development Programme) toinduce
motivation and competence in young,
prospectiveentrepreneurs