Ent300 - Module02 - Entrepreneurial Behavior & Competencies

ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
Chapter 2
ENTREPRENEURIAL
MOTIVATION AND
COMPETENCIES
Learning Outcomes
By the end of the session, students

should be able to:
• Explain and demonstrate the key
entrepreneurial motivation and
• Explain and demonstrate competencies of
successful entrepreneurs
2
Entrepreneurial Motivation
• What make people responsive to

opportunity?
• What drive them to entrepreneurship?
• Answering these question entail the
examination of entrepreneurial motivation
• Motivation is defined as a drive that cause
a person to take some goal oriented
action.
3
Cont’d… Entrepreneurial Motivation
• Motivational theories are based on the

idea that behavior is essentially
purposeful and directed towards the
attainment of certain goal.
• Thus entrepreneurial motivation is viewed
as the willingness of an entrepreneur to
sustain his or her entrepreneurial
behavior.
4
Motivation theorists have pointed out that

at least three general categories of social
motives as important determinant of
human behavior:
•The need for Achievement (n Ach)
•The need for Power (n Pow)
•The need for Affiliation (n Aff)
5

The need for Achievement (n Ach)
• Achievement Motive - drive to do well, strive for
excellence and overcome challenges and obstacles
in the pursuit of goal.
The need for Power (n Pow)
• Power Motive - drive to control, influence and to have
impact on others and change the situations.
The need for Affiliation (n Aff)
• Affiliation Motive - drive to establish, maintain or renew
affective relationship with others.
6
• All three motives may exist together in a

person
• But one usually more dominant than the
other motives for most of the individual’s
actions.
7
1. High Need for Achievement (high n Ach)
• High need for Achievement (high n Ach) has

been identified as the critical motive that
influence for most of venture creation and
entrepreneurship.
• Individual with high need for achievement
found in most good business founder.
• Need for achievement also known as urge to
improve.
8
2. High need for Power (high n Pow)
• Individual with high need for power

(high n Pow) normally seek position of
leadership.
• They potentially to be good managers,
executive or supervisors.
9
3. High Need for Affiliation (n Aff)

• High need for Affiliation (n Aff) has mostly
been associated with individual whose desire
in life is to establish, maintain or renew
affective relationship with others.
• They potentially to be good social workers
• As an entrepreneur the need for affiliation to
certain extent may contribute to the drive for
maintaining effective business networking.
10
Common Characteristics Associated with

ACHIEVEMENT Oriented Entrepreneurs
1. Drive to Achieve
Internally driven self starter with strong desire
to:
• To compete with others
• To excel with self imposed standard
• To pursue and attain challenging goal
11
Cont’d… Common Characteristics Associated with

Achievement Oriented Entrepreneurs
2. Calculated Risk Taking

• High Achiever tend to take moderated or
calculated risk
– Examining the situation and determine
how to increase the chance of winning a
business situation
– They make their effort to get the odds in
their favor
– They do not take unnecessary risks
12

3. Internal Locus of Control

• They belief that success or failure is determined
by their own effort.
• They belief in themselves
• They do not belief that success or failure of their
ventures were determined by fate or luck
• This behavior is consistent with self confidence
and desire to take personal responsibility
13

4. Tolerance for Failure

• High achievers take failure as a learning
experience.
• Do not easily become disappointed, distress or
discouraged by any setback or difficulties faced
in the midst of business competition.
• Many successful entrepreneurs belief that they
learn more from their earlier failure than from
their earlier success.
14

5. Seeking Feedback
• They have strong desire to actively seek and
used feedback to know how well they are
doing and how to improve their performance.
• Most successful entrepreneurs are quick
learners
15

6. Integrity and Reliability

• Integrity and reliability help to build and sustain
trust and confidence
• This helps to endure the relationship between
entrepreneurs, partners, customers, suppliers
and stakeholders.
16
Competence Motivation
Besides the three social motives, a
successful entrepreneur should also have the
competence motivation
• Competence motivation is a drive to do high
quality work.
17
Cont’d…Competence Motivation
• Competence motivated entrepreneur
– seek mastery in job or tasks that they are
undertaking,
– develop problem solving skill and
– strive to be innovative
• In general they tend to perform good work
because the inner satisfaction they feel and
esteem they gain from others due to their
competence.
18
PERSONAL ENTREPRENEURIAL
COMPETENCIES (PECs)
The term "ENTREPRENEURIAL

COMPETENCIES" refers to the key
characteristics that should be possessed
by successful entrepreneurs in order to
perform entrepreneurial functions
effectively
19
13 Entrepreneurial Competencies
by McClelland and McBer (1985)
1. Initiative
The entrepreneur should be able to take actions that go
beyond his job requirements and to act faster. He is
always ahead of others and able to become a leader in
the field of business.
Examples
 Does things before being asked or compelled by the
situation.
 Acts to extend the business into new areas, products or
services
20
Cont’d…Entrepreneurial Competencies
McClelland and McBer (1985)
2. Sees and Acts on Opportunities

An entrepreneur always looks for and takes action on
opportunities.
Examples
 Sees and acts on new business opportunities
 Seizes unusual opportunities to obtain financing,
equipment, land, work space or assistance
21
3. Persistence
An entrepreneur is able to make repeated efforts or to
take different actions to overcome an obstacle that get
in the way of reaching goals.
Examples
 Takes repeated or different actions to overcome an
obstacle
 Takes action in the face of a significant obstacle
22
4. Information Seeking
An entrepreneur is able to take action on how to seek
information to help achieve business objectives or clarify
business problems.
Examples
 Does personal research on how to provide a product or service
 Consults experts or experienced persons to get relevant
information
 Seeks information or asks questions to clarify a client's or a
supplier's need
 Personally undertakes market research, analysis or investigation
 Uses contacts or information networks to obtain useful
information 23
Entrepreneurial Competencies
5. Concern for High Quality of Work

An entrepreneur acts to do things that meet certain
standards of excellence which gives him greater
satisfaction.
Examples
 States a desire to produce or sell a top or better quality
product or service
 Compares own work or own company's work favorably
to that of others
24
6. Commitment to Work Contract

An entrepreneur places the highest priority on getting a
job completed.
Examples
 Makes personal sacrifice or expends extraordinary effort
to complete a job
 Accepts full responsibility for problems in completing a
job for customers
 Pitches in with workers or works in their place to get the
job done
 Expresses a concern for satisfying the customer 25
7. Efficiency Orientation
A successful entrepreneur always finds ways to do things
faster or with fewer resources or at a lower cost.
Examples
 Looks for or finds ways to do things faster or at less cost.
 Uses information or business tools to improve efficiency.
 Expresses concern about costs vs. benefits of some
improvement, change or course of action.
26
8. Systematic Planning
An entrepreneur develops and uses logical, step-by-
step plans to reach goals.
Examples
 Plans by breaking a large task down into sub-tasks
 Develops plans that anticipate obstacles
 Evaluate alternatives
 Takes a logical and systematic approach to activities
27
9. Problem Solving
Successful entrepreneur identifies new and potentially
unique ideas to achieve his goals.
Example
 Switches to an alternative strategy to reach a goal
 Generates new ideas or innovative solutions
28
10. Self-Confidence
A successful entrepreneur has a strong belief in self
and own abilities.
Examples
 Expresses confidence in own ability to complete a
task or meet a challenge
 Sticks with own judgment in the face of opposition or
early lack of success
29
11. Assertiveness
An entrepreneur confronts problems and issues with
others directly.
Examples
 Confronts problems with others directly
 Tells others what they have to do
 Reprimands or disciplines those failing to perform as
expected
30
12. Persuasion
An entrepreneur can successfully persuade or influence
others for mobilizing resources, obtaining inputs,
organizing productions and selling his products or services.
Examples
 Convinces someone to buy a product or service
 Convinces someone to provide financing
 Convinces someone to do something else that he would like
that person to do
 Asserts own competence, reliability, or other personal or
company qualities
 Asserts strong confidence in own company's products or
services 31
13. Use of Influence Strategies

An entrepreneur is able to make use of influential
people to reach his business goals.
Examples
 Acts to develop business contracts
 Uses influential people as agents to accomplish own
objectives
 Selectively limits the information given to others
 Uses a strategy to influence or persuade others
32
END OF MODULE 2
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ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP

ENTREPRENEURIAL MOTIVATION & COMPETENCY

By the end of the session, students

• What make people responsive to

Cont’d… Entrepreneurial Motivation

• Motivational theories are based on the

Cont’d… Entrepreneurial Motivation

Motivation theorists have pointed out that

Cont’d… Entrepreneurial Motivation

Cont’d… Entrepreneurial Motivation

• All three motives may exist together in a

1. High Need for Achievement (high n Ach)

• High need for Achievement (high n Ach) has

2. High need for Power (high n Pow)

• Individual with high need for power

3. High Need for Affiliation (n Aff)

Common Characteristics Associated with

Cont’d… Common Characteristics Associated with

2. Calculated Risk Taking

Cont’d… Common Characteristics Associated with

3. Internal Locus of Control

Cont’d… Common Characteristics Associated with

4. Tolerance for Failure

Cont’d… Common Characteristics Associated with

Cont’d… Common Characteristics Associated with

6. Integrity and Reliability

The term "ENTREPRENEURIAL

2. Sees and Acts on Opportunities

5. Concern for High Quality of Work

6. Commitment to Work Contract

13. Use of Influence Strategies

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