CHAPTER 2:MOTIVATING THE ENTREPRENEUR

Presented by:Kinchit Rai

DEFINITION OF MOTIVATION
Motivation refers to the way in which urges, drives, desires, striving, aspiration and needs direct, control or explain the behaviour of human being.

OBJECTIVES OF MOTIVATION
Motivation is an important function of management. When man at work, cannot be forced to work like a machine. He needs to be motivated, to take work from him. Also from entrepreneur point of view, entrepreneurial motivation is essential. A strong power authority motivation will produce a determined work ethic and commitment to the organisation. People are attracted to the leadership rate, they may not possess the required flexibility and people centered skills.

Motivation is more important for the entrepreneur for achieving his desired goal of an entrepreneur.
Entrepreneurs possessed technical knowledge or manufacturing experience in the same or related line through motivation. Majority of entrepreneurs are motivated to enter industry because there was heavy demand for the particular product.

PROCESS OF MOTIVATION

Identification of individual need

Cause tension

Leads to action

Creates satisfaction

(1) Identification of Individual Needs:

Individual needs may be the personal goal or personal satisfaction, it generates the idea and the person get motivated. So the first step for motivation process is the identification of individual need. Any person himself identify the need what they want.

(2) Cause of need.

After they find out what they want means that they create some need or say expectation from the environment. When he/she create some need motivated to the person to do the business.

(3) Leads to action.

After the need creation they start the business and that is called the entrepreneurial activity. This entrepreneurial activity also supported by the environment and it produce some goods.

(4) Creates Satisfaction.

When person have some expectation and he produce the goods same as they want for their need, when when both match then it create some satisfaction

A MODEL OF ENTREPRENEURIAL MOTIVATION

Environment Idea Personal goal Entrepreneurial Motivation Entrepreneurial Activity

Personal Characteristics

Expectation

Match

Outcomes

MASLOWS NEED HIERARCHY THEORY

Maslows theory is based on the human needs. These needs are classified into a sequential priority from the lower to higher. According to him, all human needs are classified into the five need clusters as shown below:

Physiologic al Needs

Safety and security needs

Social needs

Esteem and status needs

Self actualization needs

(1) Physiological needs. These needs are basic needs human life and include food, clothing, shelter, air, water and other necessities of life. They exert tremendous influence on human behavior. Entrepreneur also being a man needs to meet his physiological needs to survival. Hence he is motivated to work in the enterprise to have economic rewards to meet the basic needs. Like any other individual, entrepreneur also needs sufficient to meet physiological needs so he undertakes business venture on small scale and seeks economic reward from his enterprise.

(2) SAFETY AND SECURITY NEEDS.

After satisfying the physiological needs, the next needs felt are called safety and security needs. These needs find expression in such desires as economic security and protection from physical dangers. Meeting these needs requires more money and hence the entrepreneur is prompted to work more in his/her enterprise. Like physiological need, these become inactive once they are satisfied. Such factors create tension in the mind of entrepreneur and entrepreneur takes steps like shifting business to a new place to have safety. Also entrepreneur might enter into agreement or contract with purchase of raw material or other such critical issues to face the uncertainty of futures.

(3) SOCIAL NEEDS.

Man is a social animal. These needs, therefore, refer to belongingness. All individuals want to be recognised and accepted by others. Likewise, an entrepreneur is motivated to interact with fellow entrepreneurs, his employees and others.

(4) Eneeds refer to self esteem and self respect. They These STEEM AND STATUS NEEDS
include such needs which indicate self confidence, achievement, competence, knowledge and independence. In case of entrepreneurs, the ownership and self control over enterprise satisfies their esteem needs by providing them status, respect, reputation and independence. Desire to be an independent is another ego need. An entrepreneur established an enterprise to satisfy most of his ego needs. Ownership and control of a successful enterprise provides him status, personal reputation and sense of independent.

(5) SELF ACTUALIZATION

The final step under the need hierarchy model is the need for self actualization. This refers to self fulfillment. The term self actualization was coined by Kurt Goldstein and means to become actualized in what one is potentially good at. An entrepreneur may achieve self actualization in being a successful entrepreneur. The establishing and successful operating of an enterprise provides him opportunities for self expression, achievement and growth. Becomes pioneer to person for specific industry.

MCCLELLANDS ACQUIRED NEEDS THEORY.

According to David McClelland, a person acquires three types of needs as a result of ones life experience. The three needs are:

Need for affiliation.

These refers to needs to establish and maintain friendly and warm relations with others.

Need for power

These mean the ones desire to dominate and influence others by using physical objects and actions.

Need for achievement

This refers to ones will to excel in his/her efforts.

MOTIVATING FACTORS.
Internal factors
Education Background Occupational Experience Desire to do something pioneering and motivate Desire to be free and independent Family Background Activities brings confidence

External Factors
Assistance from government Financial Assistance from institution. Availability of technology and raw material. Encouragement from big business unit. Heavy demand for product.

SOCIAL AND CULTURAL FACTORS.

Culture and Globalization Culture determines goods and services Peoples attitude to business. Attitude to work Collectivism and individualism Family Ethics in business Culture creates people. Ambitious Education Authority The view of scientific method Religion Marriage Time dimension Cultural resources