Entrepreneurial Motivation & Mobility

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What is Motivation?

• ‘Motivation’ has been derived from the word ‘motive’.

• It is inner state of our mind that moves or activates or energizes

and directs our behavior towards our goal.

• According to Dalton E. McFarland, “Motivation refers to the way in

which urges, drives, desires, striving, aspirations or needs direct,

control or explain the behavior of human being”

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Motivation Theories

The importance of motivation to human life and work can be judged by the number of theories that have been propounded to explain people’s behavior.

Maslow’s Need Hierarchy Theory

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

• Physiological Needs

• Safety & Security Needs

• Social Needs

• Esteem Needs

• Self-Actualization

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McClelland’s Acquired Needs Theory

According to David McClelland a person acquires three types of needs as a result of one’s life experience. These needs are:

• Need for Affiliation

• Need for Power

• Need for Achievement

McClelland also suggests that these three needs may simultaneously be acting on an individual. But, in case of an entrepreneur, the high need for achievement is found dominating one. In his view, the people with high need for achievement are characterized by the following:

I. They set moderate, realistic and attainable goals for them.

II. Prefers to situations in which they can find solutions for solving personal responsibility.

III. They need concrete feedback on how well they are doing.

IV. They have need for achievement for attaining personal accomplishment.

V. They look for challenging tasks.

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Motivational Factors

• Internal Factors: These included the followinga) Desire to do something newb) Educational backgroundc) Occupational background or experience

• External Factors: These includeda) Government assistance and supportb) Availability of labour and raw materialc) Encouragement from big business housesd) Promising demand for the product

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Achievement Motivation

• The need for achievement plays an important role in making an entrepreneur as successful.

• It is an inner spirit that activates an entrepreneur to strive for success.

• In simple terms, need for achievement is the desire to do well.

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Entrepreneurial Mobility

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EducationExperienceAvailability of FacilitiesPolitical ConditionSize of Enterprise

Factors Influencing Mobility

Movement of Entrepreneurs from and into each location and

occupation has certain distinct features of its own kind which affect

the pace and pattern of entrepreneurship development.

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Occupational Mobility

The occupational mobility denotes movement or changes in occupation. This may take

place in two forms:

• It may be movement of a son/daughter from the principal occupation of his/her

father. This type of movement is called as ‘inter-generation movement

• it may be drift in one’s own occupation during his/her occupational career, this type

of change as ‘intra-generation occupational movement.

Location MobilityEarlier locational and spatial diversification were simply determined by an adjustment

between location and weight distance characteristics of inputs and outputs. The reason

is that the then industrial structure was heavily dominated by the natural resources

base and consumer-oriented industries. But over the period, the very consideration for

locating industries in a particular region has undergone a considerable change.