entrepreneurial motivation

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Entrepreneurial Motivation : 

Entrepreneurial Motivation What motivates an Entrepreneur…

Motivation Defined : 

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 : 

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 : 

MANIFEST NEEDS THEORY McClelland identified three types of manifest needs1. Need for Achievement (N-Ach.), 2. Need for Power (N-Pow) and 3. Need for Affiliation (N-Aff.)

Need for Power (N-Pow.): : 

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 : 

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 : 

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 : 

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.

Entrepreneurial Performance and Rewards : 

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 : 

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

Measures of Entrepreneurial Performance : 

Measures of Entrepreneurial Performance Entrepreneurial Performance Physical Financial Market- Based Stakeholders’ Based

ENTREPRENEURIAL REWARDS : 

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 money2. to gain social prestige3. to secure self employment Compelling Reasons1. Unemplyment2. Dissatisfaction with existing job or occupation3. to use technical or professional knowledge Facilitating Factors1. Previous Knowledge, experience 2. Encouragement from family members, friends3. Imitation of successful entrepreneurs Factors for Entrepreneurial Motivation

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Functions of Entrepreneurs Entrepreneurial Promotional Managerial Commercial Innovation Risk Taking Organisation Building Idea Generation Detailed Investigation Assembling Requirements financing Planning Organising Staffing Directing Leadership Communication Motivation Coordination Controlling Production Marketing Personal Accounting Finance

Factors Responsible for the Emergence and Growth of Entrepreneurship : 

Factors Responsible for the Emergence and Growth of Entrepreneurship Background Factors1. Education Training and Experience2. Family, role models and association3. Financial conditions Motivational Factors1. Need for Achievement2. Personal Motives3. Business Environment Economic Factors1. Supportive Government Policies2. Availability of Financial Assistance3. Ancillary Support Reward1. Recognition2. Social Status

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