Ent300 - Chapter 2

CHAPTER 2:
ENTREPRENEURIAL
MOTIVATION
AND COMPETENCIES
Learning Outcomes
1. Explain the key entrepreneurial motivation
2. Explain the competencies of successful entrepreneurs

INTRODUCTION
 Success of an entrepreneur depends on his willingness to
commit to the thing that he does.
 Entrepreneurs with high motivation will pursue
entrepreneurial opportunities towards entrepreneurial
processes.
 one should be able to identify his strengths and
weaknesses.
 Therefore, motivation plays a vital factor in amplifying his
strength, so he may be able to survive in the
indeterminate environment.
ENTREPRENEURIAL MOTIVATION
• Motivation is the processof internal and external
enthusiasm and persistenceto pursue all efforts
toward achieving goals to satisfy personal needs (Gray & Starke,
1988; Robbins, Coulter, & De Cenzo, 2014).
• Entrepreneurial motivation is the process of converting an individual

who can create new opportunities to achieve fortune and economic
development.
Motivation Theories
1. Abraham Maslow’s Theory of Needs
2. Hertzberg’s Two-Factor Theory
3. Douglas Mc Gregor’s Theory X and Theory Y

Abraham Maslow’s Theory of Needs
Hertzberg’s Two Factor Theory
Individual growth
Motivator Hygiene Salary and job security
factors and development
factors Company policies and
Recognition for job
administration
Supervision and work
Achievement condition
Relationship with peers,
The work itself subordinates, status and
security
Job advancement
Responsibility
Douglas Mc Gregor’s
Theory X and Theory Y
PERSONAL ENTREPRENEURIAL COMPETENCIES (PECS)
• Key characteristics that should be possessed by

successful entrepreneurs.
• Required- to perform entrepreneurial functions
effectively.
• McBer and McClelland (1985) have listed out 13
entrepreneurial competencies that must be possess.
Maintaining
Problem
Initiative High Quality
Solving
Work
Sees and Commitment

Acts on to Work Self-confidence
Opportunities Contract
McClelland and
McBer (1985)
Efficiency
Per sistence Assertiveness
Orientation
Use of
Information Systematic
Persuasion Influence
Seeking Planning
Strategies
Entrepreneurial Competencies
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
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
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
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
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
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
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
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
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
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
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
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
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
SUMMARY
 High achievement of motivation is necessary to be a
successful entrepreneur.
 Therefore, entrepreneurs need to have clear goals.
 In the early stage of developing the business,
entrepreneurs must be highly motivated to face the risk
of starting the enterprise.

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CHAPTER 2:

2. Explain the competencies of successful entrepreneurs

• Entrepreneurial motivation is the process of converting an individual

1. Abraham Maslow’s Theory of Needs

2. Hertzberg’s Two-Factor Theory

3. Douglas Mc Gregor’s Theory X and Theory Y

• Key characteristics that should be possessed by

Sees and Commitment

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