CHAPTER SEVEN
ENTREPRENEURIAL MOTIVATION
Introduction
For entrepreneurship to thrive, an entrepreneur needs to be motivated. Motives are the needs,
drives and values that add energy to and direct one’s abilities.
Content
Definition of terms
Motivation refers to a drive that is sufficiently pressing to direct the person to seek
satisfaction of the need while a need becomes a motive when it is aroused to a sufficient level
of intensity. In human psychology it is realised when a person feels strongly that he is lacking
something. That person is bound to take a certain positive action so as to reduce or eliminate
the deficiency. The person is therefore motivated by the need to act in a manner such that his
need is satisfied. Therefore, the forces that have moved that person to react in the manner he
does are his motivations.
Motivation can be viewed better by looking at factors which help sustain the quality or
intensity of the manifested behaviour.
Many theories have been developed on motivation. The following are some theories that
could support motivation.
1.) Achievement Theory (mcClelland)
Human beings are seen to be driven by three main factors:
• Need to achieve
• Need for power
• Need for affiliation
To achieve means success and therefore the underlying entrepreneur motivation. If you need
to achieve you select goals which will accomplish the need. This need makes an entrepreneur
to be persistent. They choose challenging tasks. This motivation behaviour is related to
parental characteristics, family, culture, role models.
2.) Laws of Control
Talks about the need to control. To make things happen. We want to see the outcome of an
event. Our behaviour will determine the results. Self-concept here is very crucial, want to
strive for your success (internal laws of control)
External laws of control – believes that outcome of an event is influenced by factors beyond
you. They believe in others influence on an activity. So, an entrepreneur must know whether
they is driven by an inner need to succeed and win. Are you internally or externally driven. In
evaluating your internal – external control dimensions, an entrepreneur depicts a sense of
control over his/her life.
Abraham Maslow’s Hierarchy of Needs
This theory was developed by Maslow in 1954. It states that human needs are arranged in
hierarchical order beginning with the most basic need.
Succeeding to your Being promoted and given
full potential more responsibilities
Having status and being given recognition
recognition, achievement, for a job done
& independence Self
Actualisation
Friendship, a sense of Work colleagues that
belonging to support you to work
Self Esteem
Protection against Job security
danger, poverty
unfair treatment Social needs
Food, rest, Wages high
Shelter, Security Needs enough to
Recreation meets needs
Physiological
Needs
Maslow suggests that each level in the hierarchy must be achieved before an entrepreneur can
be motivated by the next level. E.g. when a social need is satisfied, it ceases to be a
motivator. Your full potential motivation depends on you not others. One must strive to
realise your full potential.
Many people like the comfort and security they have in their jobs. As long as they are able to
provide to their families. They could be having resources needed to start a venture but have
no drive to do so.
Motivation for venturing into business vary a lot. Those frequently cited would include, both
internal and external motivational factors
Entrepreneurial motivation factors
Although the motivations for venturing out alone vary greatly, the following are some of the
reasons cited for becoming an entrepreneur:
Internal motivations and drives include:
a) Need for self-actualisation
b) Need for achievement
c) Need to take up a challenge
d) Need for inadequacy
e) Need for success in certain class (social)
f) Need for adventure – discover the business world
g) Need to reduce tension
h) Need to acquire the social status
i) Need to control power
j) Unemployment
External motivations and drives
a) Role models – looking at those already successful in business
b) Family background
c) Training
d) Support social systems
e) Geographical position of the area
f) Needs for external income as a push
g) Government incentives
h) Market availability
i) Infrastructure
j) Credit facilities
