Motivation • What is 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 David McClelland Theory of Motivation • 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 MotivationHigh 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.
Entrepreneurial Motivation 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.
Entrepreneurial Motivation High 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.
Entrepreneurial MotivationCommon characteristics associated withachievement oriented entrepreneursDrive to achieve• Internally driven self starter with strong desire to:• To compete with others• To excel with self imposed standard• To pursue and attain challenging goal
Entrepreneurial MotivationCommon characteristics associated withachievement oriented entrepreneursCalculated risk taking• High achiever tend to take moderated or calculated risk – Examining the situation and determine how to increase the chance of winning a business situation – They make their effort to get the odds in their favor – They do not take unnecessary risks
Entrepreneurial MotivationCommon characteristics associated withachievement oriented entrepreneursInternal locus of control• They belief that success or failure is determined by their own effort.• They belief in themselves• They do not belief that success or failure of their ventures were determined by fate or luck• This behavior is consistent with self confidence and desire to take personal responsibility
Entrepreneurial Motivation Common characteristics associated with achievement oriented entrepreneursTolerance for failure• High achievers take failure as a learning experience.• Do not easily become disappointed, distress or discouraged by any setback or difficulties faced in the mist of business competition.• Many successful entrepreneurs belief that they learn more from their earlier failure than from their earlier success.
Entrepreneurial MotivationCommon characteristics associated withachievement oriented entrepreneursSeeking Feedback• They have strong desire to actively seek and used feed back to know how well they are doing and how to improve their performance.• Most successful entrepreneurs are quick learners
Entrepreneurial Motivation Common characteristics associated with achievement oriented entrepreneursIntegrity and reliability• Integrity and reliability help to build and sustain trust and confidence• This helps to endure the relationship between entrepreneurs, partners, customers, suppliers and stakeholders.
Entrepreneurial Motivation Competence motivationBesides the three social motives, asuccessful entrepreneur should also havethe competence motivation• Competence motivation Is a drive to do high quality work.
Entrepreneurial Motivation Competence motivation• Competence motivated entrepreneur – seek mastery in job or tasks that they are undertaking, – develop problem solving skill and – strive to be innovative• In general they tend to perform good work because the inner satisfaction they feel and esteem they gain from others due to their competence.
Entrepreneurial Motivation PERSONAL ENTREPRENEURIAL COMPETENCIES (PECs) The term "ENTREPRENEURIAL COMPETENCIES" refers to the keycharacteristics that should be possessed by successful entrepreneurs in order to perform entrepreneurial functions effectively
Entrepreneurial Motivation Entrepreneurial Competencies McClelland and McBer (1985)1. Initiative The entrepreneur should be able to take actions that go beyond his job requirements and to act faster. He is always ahead of others and able to become a leader in the field of business.Examples Does things before being asked or compelled by the situation. Acts to extend the business into new areas, products or services
Entrepreneurial Motivation Entrepreneurial Competencies McClelland and McBer (1985)2. Sees and acts on opportunities An entrepreneur always looks for and takes action on opportunities.Examples Sees and acts on new business opportunities Seizes unusual opportunities to obtain financing, equipment, land, work space or assistance
Entrepreneurial Motivation Entrepreneurial Competencies McClelland and McBer (1985)3. Persistence An entrepreneur is able to make repeated efforts or to take different actions to overcome an obstacle that get in the way of reaching goals.Examples Takes repeated or different actions to overcome an obstacle Takes action in the face of a significant obstacle
Entrepreneurial Motivation Entrepreneurial Competencies McClelland and McBer (1985)4. Information Seeking An entrepreneur is able to take action on how to seek information to help achieve business objectives or clarify business problems.Examples Does personal research on how to provide a product or service Consults experts or experienced persons to get relevant information Seeks information or asks questions to clarify a clients or a suppliers need Personally undertakes market research, analysis or investigation Uses contacts or information networks to obtain useful information
Entrepreneurial Motivation Entrepreneurial Competencies McClelland and McBer (1985)5. Concern for High Quality of Work An entrepreneur acts to do things that meet certain standards of excellence which gives him greater satisfaction.Examples States a desire to produce or sell a top or better quality product or service Compares own work or own companys work favorably to that of others
Entrepreneurial Motivation Entrepreneurial Competencies McClelland and McBer (1985)6. Commitment to Work Contract An entrepreneur places the highest priority on getting a job completed.Examples Makes personal sacrifice or expends extraordinary effort to complete a job Accepts full responsibility for problems in completing a job for customers Pitches in with workers or works in their place to get the job done Expresses a concern for satisfying the customer
Entrepreneurial Motivation Entrepreneurial Competencies McClelland and McBer (1985)7. Efficiency Orientation A successful entrepreneur always finds ways to do things faster or with fewer resources or at a lower cost.Examples Looks for or finds ways to do things faster or at less cost Uses information or business tools to improve efficiency Expresses concern about costs vs. benefits of some improvement, change, or course of action
Entrepreneurial Motivation Entrepreneurial Competencies McClelland and McBer (1985)8. Systematic Planning An entrepreneur develops and uses logical, step-by- step plans to reach goals.Examples Plans by breaking a large task down into sub-tasks Develops plans that anticipate obstacles Evaluate alternatives Takes a logical and systematic approach to activities
Entrepreneurial Motivation Entrepreneurial Competencies McClelland and McBer (1985)9. Problem Solving Successful entrepreneur identifies new and potentially unique ideas to achieve his goals.Example Switches to an alternative strategy to reach a goal Generates new ideas or innovative solutions
Entrepreneurial Motivation Entrepreneurial Competencies McClelland and McBer (1985)10.Self-Confidence A successful entrepreneur has a strong belief in self and own abilities.Examples Expresses confidence in own ability to complete a task or meet a challenge Sticks with own judgment in the face of opposition or early lack of success
Entrepreneurial Motivation Entrepreneurial Competencies McClelland and McBer (1985)11.Assertiveness An entrepreneur confronts problems and issues with others directly.Examples Confronts problems with others directly Tells others what they have to do Reprimands or disciplines those failing to perform as expected
Entrepreneurial Motivation Entrepreneurial Competencies McClelland and McBer (1985)12.Persuasion An entrepreneur can successfully persuade or influence others for mobilizing resources, obtaining inputs, organizing productions and selling his products or services.Examples Convinces someone to buy a product or service Convinces someone to provide financing Convinces someone to do something else that he would like that person to do Asserts own competence, reliability, or other personal or company qualities Asserts strong confidence in own companys products or services
Entrepreneurial Motivation Entrepreneurial Competencies McClelland and McBer (1985)13.Use of Influence Strategies An entrepreneur is able to make use of influential people to reach his business goals.Examples Acts to develop business contracts Uses influential people as agents to accomplish own objectives Selectively limits the information given to others Uses a strategy to influence or persuade others
Entrepreneurial Motivation THE KAKINADA EXPERIMENTWhat is this KAKINANDA EXPERIMENT?This is a Training Programme held on January 1964, Organized by David McClellandat Kakinada in A.P.Kakinada is a well-developed district town of a population of around 1 lakh withHigh Literacy and modest Industrial Structure.Objectives of the Experiment:8.To Instill them the Quality of Imagination.9.To encourage Introspection(Tending to think a lot about your Status and Feelings etc)and Convert it in to Personal Motivation and Community Goal
Entrepreneurial Motivation THE KAKINADA EXPERIMENTThe Process of Training/Experiment:The Training was Conducted at Small Industries Extension and Training Institute(SIETI)Hyderabad.They framed 3 Batches in the composition of 52 Trainees in 1 Batch. These trainees arebelonged to Business and Industrial Community of that Particular Area.The Achievement Motivation Training (AMT) included in the following basics which weresupposed to be accomplished by the trainees.9.Goal Setting and Goal Achievement.10. Emulating the models of achievement by constant watch and alertness.11.Attainment of Concrete and Frequent feedback.12.Planning Carefully the realistic goals performance appraisal of their own13.Converting Ideas in to Opportunities using + ve Self Concept and Controlling day dreaming
Entrepreneurial Motivation THE KAKINADA EXPERIMENT Results of Kakinada Experiment4.The Training Helped those Participants in providing high degree of Motivation andsubsequently the need for achievement.5.They displayed a more active business behavior and took enough stress to accomplishthe job.6.This AMT is regarded as necessary tool for breaking the barriers of limitedaspirations among individuals on one hand and inducing them high need forachievement on the other.7.The training also acts as boost to the risk taking and decision making behavior ofPotential Entrepreneurs.8.The N.ACH is also termed as Efficiency Motivation.
Important QuestionsPART-A 2 Marks Questions•What is Entrepreneurial Motivation?•What is N.ACH?•What is Entrepreneurial Competency?•What are the Objectives of Kakinada Experiment?PART-B 5 Marks Questions8.Explain the David McClelland Theory of Motivation.9.Explain The Kakinada Experiment10.Explain the Characteristics of Successful Entrepreneurs.PART –C 10 Marks Questions13.Explain the Concept of Achievement and Motivation with respect to Kakinada Experiment.14.Explain the Concept of N.ACH with respect to Entrepreneurs by taking relevant examples.