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.

Entrepreneurial Motivation 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.

Types of Motivation There are two types of motivation: Extrinsic Motivation Intrinsic Motivation

Extrinsic Motivation Behaviors that are reinforced through the use of rewards that are not inherent in the activity e.g., praise, money, stickers, candy, etc… People have less interest in the task itself Motivation only lasts as long as the reward does

Intrinsic Motivation They do it for the “passion of the business” Behaviors that occur for no notable reason beyond the task itself They do it for the “passion of the business” Doesn’t have to be one or the other

Entrepreneurial 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 Motivation 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. Or

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.

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.

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.

Let’s Take Another Survey This survey will help you understand your highest and lowest motivations out of: Power, lifestyle, creativity, status, respect, stability, compensation, location, intellectualism, philanthropy, travel, recognition, family, self-improvement, independence http://testyourself.psychtests.com/testid/3153 Answer questions – at the end select do not want to answer for personal questions