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.

• 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.

Entrepreneurial Motivation

Types of Motivation

• There are two types of motivation:– Extrinsic Motivation– Intrinsic Motivation

Extrinsic Motivation

• Behaviors that are reinforced through the use of rewards that are not inherent in the activity

• e.g., praise, money, stickers, candy, etc…

• People have less interest in the task itself

• Motivation only lasts as long as the reward does

Intrinsic Motivation

• Behaviors that occur for no notable reason beyond the task itself

• They do it for the “passion of the business”

• Doesn’t have to be one or the other

• 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)

Entrepreneurial Motivation

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.

Entrepreneurial Motivation

• 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.

Entrepreneurial Motivation

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.

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.

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.

Let’s Take Another Survey

• This survey will help you understand your highest and lowest motivations out of:– Power, lifestyle, creativity, status, respect, stability,

compensation, location, intellectualism, philanthropy, travel, recognition, family, self-improvement, independence

• http://testyourself.psychtests.com/testid/3153

• Answer questions – at the end select do not want to answer for personal questions