Entrepreneurial motivation

Motivation
• Motivation is the reason for people's actions, desires, and needs.
• Motivation is also one's direction to behavior, or what causes a person to
want to repeat a behavior.
• A motive is what prompts the person to act in a certain way, or at least
develop an inclination for specific behavior.
Entrepreneurial Motivating Factors
• Internal Factors
• External Factors
Internal Factors
• Desire to do something new.
• Become independent.
• Achieve what one wants to have in life.
• Be recognized for one’s contribution.
• One’s educational background.
• One’s occupational background and experience in the relevant field.
 External Factors
• Government assistance and support.
• Availability of labour and raw material.
• Encouragement from big business houses.
• Promising demand for the product.
Maslow’s Need Hierarchy Theory of Motivation

Abraham Maslow in his book “ Motivation and Personality (1954)”

propounded that humans have a hierarchy of five needs, which begins with
the basic need of physiological well-being and goes up to realization of
one’s potential.
 Features of need hierarchy theory:
• Human needs are wide in range and interrelated.
• Needs are arranged in a hierarchy and the lower-level needs have
to be at least partially satisfied before one moves on to the
higher-level needs.
• A need that is satisfied is not a motivator. Only unsatisfied need
can motivate persons into action.
• Every human being wants to move up the need hierarchy. Nobody
wants to stop with the satisfaction of lower-level needs.
• Needs are interdependent and are interrelated with each other. A
higher-level need arises even before the lower-level need is
completely satisfied.
 Limitations of Maslow’s theory
• Needs are dynamic and keep changing with circumstances. For
example, some cultures appear to place social needs before any others.
• There is little evidence to suggest that people are motivated to satisfy
only one need level at a time, except in situations where there is a
conflict between needs.
• The model of Maslow is based on oversimplification of human needs.
• Behaviour is not influenced by needs alone. Factors such as
expectations, experiences and perceptions also have a great impact on
behaviour.
McClelland achievement and acquired needs theory

In his 1961 book 'The Achieving Society', David McClelland expounds on his acquired-needs
theory. He proposed that an individual's specific needs are acquired over time and are
shaped by one's life experiences. He described three types of motivational need. A person's
motivation and effectiveness in certain job functions are influenced by these three needs.
McClelland achievement and acquired needs theory

Achievement
• Has a strong need to set and accomplish challenging goals.
• Takes calculated risks to accomplish their goals.
• Likes to receive regular feedback on their progress and achievements.
• Often likes to work alone.
McClelland achievement and acquired needs theory

Affiliation
• Wants to belong to the group.
• Wants to be liked, and will often go along with whatever the rest of the
group wants to do.
• Favors collaboration over competition.
• Doesn't like high risk or uncertainty.
McClelland achievement and acquired needs theory

Power
• Wants to control and influence others.
• Likes to win arguments.
• Enjoys competition and winning.
• Enjoys status and recognition.
Strength of Mcclelland’s needs theory

• Provides a clear picture for the organization and managers

• Provides an understanding to deal with employees
• More empirical evidence
Weakness of Mcclelland’s needs theory

Issues with the validity concerning the level of individual needs