This document discusses theories of motivation and factors influencing entrepreneurship. It describes Maslow's hierarchy of needs and McClelland's theory of three needs - need for affiliation, power, and achievement. The need for achievement is found to dominate in entrepreneurs. Factors influencing entrepreneurial motivation include internal drives and external supports. The document also examines factors influencing occupational and location mobility of entrepreneurs such as education, experience, facilities, and political conditions.

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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 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:

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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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•Internal Factors: These included the following
a) Desire to do something new
b) Educational background
c) Occupational background or experience
•External Factors: These included
a) Government assistance and support
b) Availability of labour and raw material
c) Encouragement from big business houses
d) Promising demand for the product

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•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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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.
Education
Experience
Availability of Facilities
Political Condition
Size of Enterprise

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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 Mobility
Earlier 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.