Entrepreneurial
Motivation
What motivates an Entrepreneur…
Functions of
Entrepreneurs
Entrepreneurial Promotional Managerial Commercial
1. Innovation 1. Planning
1. Idea 2. Organising
2. Risk Taking
Generation 3. Staffing 1. Production
3. Organisatio
2. Detailed 4. Directing 2. Marketing
n Building
Investigation 5. Leadership 3. Personal
3. Assembling 6. Communication 4. Accountin
Requirements 7. Motivation g
4. financing 8. Coordination 5. Finance
9. Controlling
Motivation Defined
Derived from Latin word – ‘Movere’ – to
move.
Psychologically, it means an inner or
environmental stimulus to action, forces or
the factors that are responsible for initiation,
and sustaining behaviour.
Different people engage in the same
behaviour for different reasons.
Need Framework of Entrepreneurial
Motivation
People certainly don’t work for money alone.
Money is required not for its own sake, but
for the sake of the needs of the person that it
can fulfill.
McClelland may be regarded as the father of
the study of entrepreneurial motivation.
Framework of ‘manifest’- Needs of the
individual can be perceived by his behaviour.
MANIFEST NEEDS THEORY
McClelland identified three types of manifest
needs
1. Need for Achievement (N-Ach.),
2. Need for Power (N-Pow) and
3. 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.
Need for Power (N-Pow.):
“concern for influencing people”.
politicians, social-religious leaders Chief
Executive Officers, (CEOs), Government
Bureaucrats/Civil Servants.
based on the belief that the source of power
lies in the “position” a person occupies in
organizational/societal context.
Need for Affiliation
“readily thinks about interpersonal
relationships”.
“a tendency of the people to conform to the
wishes and norms of those whom they value.”
Social activists, environmentalists, teachers,
and doctors and nurses
Need for Achievement
Concerns issues of excellence, competition,
challenging goals and overcoming difficulties.
want to take personal responsibility for
solving problem.
Goal oriented, sets moderate, realistic,
attainable goals.
One also seeks challenge, excellence, and
individuality.
Takes calculated risk and willing to work hard
Need for Autonomy
desire for independence.
desire to do work of one’s choice and at
one’s pace, defining one’s own rules of the
game, taking initiative, making independent
and innovative choices and being responsible
and accountable to oneself rather than some
external authority for performance.
ATTRIBUTES LEADS TO MOTIVATION
Attribute Need
Thinking, Deciding and Acting
N-Aut.
Independently
N-Aff.
Warmth, compassion fellow-being
N-Ach.
Competitiveness, excellence
Leadership, control, direction N-Pow.
Entrepreneurial Performance and
Rewards
Entrepreneurial performance may refer to
measure (s) of business success .
Rewards may refer to the recompense-
financial or psychic accruing to the
entrepreneur.
The convergence is attained when and where
the success of the venture itself is perceived
as a personal reward.
ENTREPRENEURIAL PERFORMANCE
longevity of survival or more popularly ‘age of the
enterprise,’
sales growth,
growth in market share,
growth in market scope (local, national or international),
growth in investment (in the same unit),
additional units created via acquisition & diversification
growth in number of employees, profits and so on.
customers’ satisfaction, employee satisfaction, image,
credit rating
acquiring corporate identities.
stock price, EPS
ENTREPRENEURIAL REWARDS
Extrinsic Rewards : In terms of money.
Intrinsic Rewards : Lies in doing the activity
itself.
Entrepreneur enjoys the creativity and
innovativeness that he brings to his venture.
Factors for Entrepreneurial Motivation
Entrepreneurial Ambition:
1. to make money
2. to gain social prestige
3. to secure self employment
Compelling Reasons
1. Unemplyment
2. Dissatisfaction with existing job or occupation
3. to use technical or professional knowledge
Facilitating Factors
1. Previous Knowledge, experience
2. Encouragement from family members, friends
3. Imitation of successful entrepreneurs
Factors Responsible for the Emergence and
Growth of Entrepreneurship
Background Factors
1. Education Training and Experience
2. Family, role models and association
3. Financial conditions
Motivational Factors
1. Need for Achievement
2. Personal Motives
3. Business Environment
Economic Factors
1. Supportive Government Policies
2. Availability of Financial Assistance
3. Ancillary Support
Reward
1. Recognition
2. Social Status
The driving force: what motivates Indian entrepreneurs
Motivator % mentioning
Motivator % mentioning
Rewards of entrepreneurship
Autonomy 57
Making money/financial independence 43
Saw business opportunity/impact on industry 27
Recognition of self and/or organisation 23
Desire to create something new/innovate 20
Build something important/make a difference 17
Grow a business from scratch 17
Desire to be entrepreneur/excitement of entrepreneurship 3
Personal qualities
Intellectual challenge/achieve potential 27
Instinct 10
Others 10
Career
Career growth/diversification/satisfaction 13
Others 3
Experience
Utilise previous experience 6
Had technology/industry vision 3
n-monetary factors
Help India in various ways 23
Non-monetary success/personal satisfaction 7
Create value/jobs/wealth in society
3
THE SUCCESS STORY OF KARSAN BHAI PATEL
THE MAN BEHIND THE BRAND NIRMA
CONCEPT BEHIND THIS PICTURE
END