Entrepreneurial Behaviour and Motivation

ENTREPRENEURIAL
BEHAVIOUR AND
MOTIVATION
Motivation
 Entrepreneurial behavior is the result of entrepreneurial
motivation.
 Motivation has been derived from the word ‘motive’

which implies the inner state of mind that activates,
provokes and directs our behavior towards the goal.
 Motivation is a process that motivates a person into

action and induces him to follow the course of action till
the goals are finally achieved.
Introduction & Definition of Motivation
•To motivate means to provide motive, to impel people to action, and
to create incentives to work.
•“Motivation is the work a manager performs to inspired, encourage,

and impel people to take required action” – Lewis Allen
•“The act of stimulating someone or oneself to get a desired course of

action”- Michael J
•“Motivation means stimulating people to action to accomplish desired

goals.”- William Scott
 According to Bernard and Steener, “ A motive is an inner state that
energies, activates or moves and that directs behaviour towards
goals”.
 Nature of Motivation.
 Internal feeling of an individual.
 These feelings prompt him to work more.
 Energies towards productive action.
 Motivation is linked to satisfaction.
 An individual is motivated in totality.

Importance of Motivation
 Types of Motivation.
 Positive Motivation:
 Results in willing co-operation of workers by tempting them
towards rewards or incentives.
 Negative Motivation:
 Creates fear amongst workers by threatening them with
demotions, pay cuts, lay offs, etc.
 Importance of Motivation:
 Improves morale of employees.
 Lower labour turnover.
 Improves goodwill of organisation.
 Creates cordial industrial relations.
 Changes are more easily accepted by employees.
Incentives
An incentive is something that stimulates a person to
get it by engaging in desired behavior.
 Theories of Motivation.
Motivation
( A ) Maslow Need Hierarchy Theory:
 Based on human needs.
 Strong needs of an individual dominates the other

needs.
 The second need does not arise till the first need is
satisfied i.e. needs have a definite sequence of
domination
Self
Esteem Activation
or ego Needs
Social Needs --------------
Safety Needs -------------
Needs ------------
Physiological ------------- Self
Needs Job Love Self Development
-------------- Security, Affection Respect
Water, Personal Warmth Self Personal
Air, Security, Friendship Confidence Achievement
Shelter Future Recognition
Clothing Security Prestige
1 2 3 4 5
( B ) McClelland’s Three Need Model:
Includes: -
 Need for achievement:

 Drive to excel, advance and grow.
 Desire to achieve something with own efforts.
 Need for Power:

 Drive to influence others and situations.
 Desire to influence and dominate others through use of
authority.
Need for Affiliation:
Drive for friendly and close interpersonal
relationships.
Desire to establish and maintain friendly
relationship with others.
People possess the above needs in varying

degrees and these needs may be simultaneously
acting on an individual. In case of entrepreneurs
the need for achievement is more dominating.
( C ) Alderfer’s ERG Theory:
 Existence, Relatedness and Growth Theory.
 Existence Needs:
 Includes basic needs and safety needs.
 Relatedness Needs:
 Needs are satisfied by personal relations and social
interactions.
 Growth Needs:
 Includes self actualization needs.
 For the proper development of entrepreneurship, relatedness

and growth needs are more important.
 Motivating Factors:
( A ) Internal Factors:
Factors
 Educational Background.
 Occupational Experience.
 Desire to do work independently.
 Desire to branch out to manufacturing.
 Family Background.
( B ) External Factors:
Factors
 Assistance from Government.
 Assistance from financial institutions.
 Availability of technology.
 Availability of raw material.
 Demand of the particular product.
 Entrepreneurial Traits or Competencies.
Competencies
 Initiative.
 Looking for Opportunity.
 Persistence.
 Information Seeker.
 Quality Consciousness.
 Commitment to work.
 Commitment to Efficiency.
 Proper Planning.
 Self Confidence.
 Assertive.
 Persuasive.
 Effective Monitoring.
 Employees Welfare.
 Effective strategist.
 Developing Entrepreneurial Competences.
Competences
 Gaining first hand knowledge about competencies.
 Competency Recognition.
 Self Assessment.
 Comparing of Competencies.
 Developing of Competencies and feedback.

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ENTREPRENEURIAL

 Motivation has been derived from the word ‘motive’

 Motivation is a process that motivates a person into

•“Motivation is the work a manager performs to inspired, encourage,

•“The act of stimulating someone or oneself to get a desired course of

•“Motivation means stimulating people to action to accomplish desired

 Internal feeling of an individual.

 These feelings prompt him to work more.

 Energies towards productive action.

 Motivation is linked to satisfaction.

 An individual is motivated in totality.

 Based on human needs.

 Strong needs of an individual dominates the other

 Need for achievement:

 Need for Power:

People possess the above needs in varying

 Existence, Relatedness and Growth Theory.

 For the proper development of entrepreneurship, relatedness

 Gaining first hand knowledge about competencies.

 Developing of Competencies and feedback.

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