This document discusses entrepreneurial motivation and competencies. It explains that high achievement motivation, a drive for competence, and internal locus of control are key motivations for entrepreneurs. Successful entrepreneurs also demonstrate initiative, seek opportunities, show persistence, seek information, prioritize quality and completing work. Their competencies include planning, problem-solving, self-confidence, assertiveness, persuasion, and using influence strategies. The document provides examples of behaviors associated with each motivational dimension and competency.
ENT/ETR300 - Key Entrepreneurial Motivation and Competencies
1. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
ENTREPRENEURIAL
MOTIVATION AND
COMPETENCIES
Assoc. Prof. Dr Nawawi B Mohd Jan
2. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
Learning Outcomes
By the end of the session, students should
be able to:
• Explain and demonstrate the key
entrepreneurial motivation and
• Explain and demonstrate competencies of
successful entrepreneurs
3. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
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.
4. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
• 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
5. 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)
ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
Entrepreneurial Motivation
6. 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.
ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
Entrepreneurial Motivation
7. • 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.
ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
Entrepreneurial Motivation
8. 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.
ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
9. 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.
ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
10. 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.
ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
11. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
Drive 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
Common characteristics associated with
achievement oriented entrepreneurs
ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
12. Calculated 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
Common characteristics associated with
achievement oriented entrepreneurs
ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
13. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
Internal 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
Common characteristics associated with
achievement oriented entrepreneurs
14. Tolerance 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.
Common characteristics associated with
achievement oriented entrepreneurs
ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
15. Seeking 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
ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
Common characteristics associated with
achievement oriented entrepreneurs
16. Integrity 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.
ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
Common characteristics associated with
achievement oriented entrepreneurs
17. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
Besides the three social motives, a
successful entrepreneur should also have
the competence motivation
• Competence motivation Is a drive to do high
quality work.
Competence motivation
18. • 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.
ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
Competence motivation
19. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
PERSONAL ENTREPRENEURIAL
COMPETENCIES (PECs)
The term "ENTREPRENEURIAL
COMPETENCIES" refers to the key
characteristics that should be possessed
by successful entrepreneurs in order to
perform entrepreneurial functions
effectively
20. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
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 Competencies
McClelland and McBer (1985)
21. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
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 Competencies
McClelland and McBer (1985)
22. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
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 Competencies
McClelland and McBer (1985)
23. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
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 client's or a
supplier's need
Personally undertakes market research, analysis or investigation
Uses contacts or information networks to obtain useful information
Entrepreneurial Competencies
McClelland and McBer (1985)
24. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
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 company's work favorably
to that of others
Entrepreneurial Competencies
McClelland and McBer (1985)
25. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
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 Competencies
McClelland and McBer (1985)
26. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
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 Competencies
McClelland and McBer (1985)
27. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
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 Competencies
McClelland and McBer (1985)
28. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
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 Competencies
McClelland and McBer (1985)
29. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
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 Competencies
McClelland and McBer (1985)
30. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
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 Competencies
McClelland and McBer (1985)
31. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
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 company's products or
services
Entrepreneurial Competencies
McClelland and McBer (1985)
32. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
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 Competencies
McClelland and McBer (1985)
33. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
END OF MODULE 2