1. ENTREPRENEURIAL MOTIVATION AND COMPETENCIES
Assoc. Prof. Dr Nawawi B Mohd Jan

2. 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. 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. 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.

5. Entrepreneurial Motivation
ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
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)

6. Entrepreneurial Motivation
ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
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.

7. Entrepreneurial Motivation
ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
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

8. High need for achievement (high n Ach)
ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
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.

9. High need for power (high n Pow)
ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
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.

10. High need for affiliation (n Aff)
ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
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.

11. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
Common characteristics associated with achievement oriented entrepreneurs
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

12. Calculated risk taking
ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
Common characteristics associated with achievement oriented entrepreneurs
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

13. Internal locus of control
Common characteristics associated with achievement oriented entrepreneurs
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

14. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
Common characteristics associated with achievement oriented entrepreneurs
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.

15. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
Common characteristics associated with achievement oriented entrepreneurs
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

16. Integrity and reliability
ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
Common characteristics associated with achievement oriented entrepreneurs
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.

17. Competence motivation
Besides the three social motives, a successful entrepreneur should also have the competence motivation
Competence motivation Is a drive to do high quality work.

18. Competence motivation
ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
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.

19. 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. 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

21. 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

22. 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

23. 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 client's or a supplier's need
Personally undertakes market research, analysis or investigation
Uses contacts or information networks to obtain useful information

24. 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 company's work favorably to that of others

25. 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

26. 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

27. 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

28. 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

29. 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

30. 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

31. 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 company's products or services

32. 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

33. END OF MODULE 2