ENTREPRENEURIAL MOTIVATION;

Objectives;
i) The learner should be able to:
ii) Define motivation and explain different factors
that motivator’s people to become entrepreneurs
iii) Explain the meaning of internal and external
factors of motivation
iv) Discuss about achievement motivation
v) Describe in detail Maslow Hierarchy of needs

CONTENT;
The motives of an entrepreneur are numerous some are purely
totally focused on developing their innovation and money is
just the mechanism that allows it to happen. Most
entrepreneurs are after both some wants a sense of self –
importance.Othersget satisfaction by being self employed.
Def; Motivation
It is derived from the word’motive’Motives may be defined as
drive or impulses within and individual i.e something within a
person which prompts him into action.
According to Floppy “Motivation is a process of attempting to
influence others to do your will through the possibility of
gain or rewards
According to Mc Farland “motivation refers to ways in which
urges, drives, desire and aspirations striving or needs direct
control or explain the behavior of human beings”
Nature Of Motivation
The descriptions above reveal the following characteristics of
motivation.
I) Motivation is a personal and internal feeling
It rises in the mind of and individual when his needs and
wants satisfied.
ii) Motivation is a continuous process
Satisfaction of one need leads to feeling of another and the
process goes on.
 iii) Human needs are inter related.
The inter relation of human needs influence human behavior in
different ways.
iv)Motivation causes goal-directed behavior
Feeling of a need creates tension. A person works for the goal
to obtain rewards that satisfy his needs.

Theories of Motivation.
Prominent Theories include the following;
Maslow’s need Hierarchy Theory;
Maslow is known for the conceptualization of hierarchy of
human needs. In his theory he identified five sets of human
needs arranged in hierarchy of the importance and priority
i.e when a set of needs is satisfied it causes to be a
motivator, thereafter the next set takes the position. At the
lowest level there will be basic needs followed by other sets.
The theory is based on the following assumption

❖ Man is wanting being

❖ Needs have definite is not motivator

❖ A satisfied need is not motivator

❖ As one need is satisfied another replaces it.

 MASLOW HIERARCHY OF NEED;

The basic human needs are as follows.

I) Physiological Needs
The are needs for sustaining life e.g. food shelter air. They
can not be postponed.
 ii) Security

This is the protection against danger /sickness, they also

include safety against accidents and adverse impacts e.g. a
successful enterprise is a source of safety to the
entrepreneur.

iii) Belongingness and love needs

I.e the need to accepted by others need to receive attention

etc in the absents of the above people become susceptible to
loneliness social anxiety and clinical depression.

IV) Esteem needs

It presents the normal desire to be accepted and valued by

others i.e to gain recognition and have an activity that give
essential contribution. Lack of the above may result in low
esteem or inferiority complex
v) Cognitive need.
It is the need for knowledge and information i.e. the person
seeks the understanding of the world in which he lives.
Vi) Aesthetic needs.
The need for beauty, order and symmetry Vii) Self
actualization needs
This is a soul searching need. The entrepreneur seek
challenging assignments that allows for creativity growth and
advancement.

McClelland’s Acquired Needs Theory.;

According to McClelland a person acquires three types of needs
at any time. These are

❖ Need for achievement e.g. the urge to excel or do

well

❖ Need for power e.g. desire to establish and

maintain friendliness with others? There for
entrepreneur have a high need for achievement

Motivating factors
Research have been conducted to identify factors that inspires
entrepreneur they are in two categories; Internal and external
Factors internal to the entrepreneur;

❖ Desire to work independently

❖ Technical knowledge’s and manufacturing experience

❖ Business experience
Factors external to the entrepreneur;

❖ Financial assistance non-government sources

❖ Availability of technology

❖ Heavy demand

❖ Profit margin

❖ Accommodation in industrial estates

❖ Encouragements from other business

❖ Instable units at a cheap price

❖ Financial assistance from institutional sources

McClelland suggests that executive have a higher need for
achievement than men Arnold has stated three main factors
which influence the behavior of an entrepreneur;
1. The internal factors e.g. age family
background education etc which makes him more
or less inclined to entrepreneurship.
2. The organization in which ha has been working
earlier also called incubator organization
 3. Complex of external factors refer above )
A further study of entrepreneur motivation has classified the
factors behind entrepreneur growth in three categories;-
-To make money
-To fulfill desire
-Continue family business
-Gain social prestige
-Self employment etc
Compelling reasons;
1. Unemployment
2. Dissatisfaction with the current job
3. Making use of idle funds
4. Make use of professional skills
5. Maintenance of large families

Facilitating factors;
1. Previous association
2. Influence
3. Success stories of other entrepreneurs
4. Property inherited
5. Previous employment in the same activity
The Achievement Motivation;
According to McClelland the need for achievement refers to the
need for personal accomplishment i.e the drive to excel or
success. It is the need for achievement that motivates people
to take risks. It stimulates a person to be an entrepreneur.
The psychological factors which contribute to entrepreneurial
motivation are as follows;
1. Need for achievement through self study

2. Desire for personal responsibility

3. Anticipation of future responsibilities
4. Organizational skills
 5. Keen interesting situation
6. Concrete measures of task performance
7. Energetic or instrumental activity

According to McClelland if the “inner spirit is higher it

would produce more energetic entrepreneur

ADDITIONAL INFORMATION ON THIS TOPIC

Entrepreneurial motivation theories aim to explain the

underlying factors that drive individuals to start and sustain
their own businesses. These theories combine insights from
psychology, economics, and business studies. Here are some key
theories that provide a framework for understanding
entrepreneurial motivation:
1. Maslow's Hierarchy of Needs (1943)
Maslow's theory, although not specific to entrepreneurship, is
often applied to understand the motivations of entrepreneurs.
According to Maslow, people are motivated by a hierarchy of
needs, starting with basic physiological needs and moving to
more complex needs such as self-actualization. Entrepreneurs
are often driven by:
• Esteem Needs: A desire for recognition, status, and
respect.
• Self-Actualization: The need to fulfill one’s potential
and achieve personal growth, which aligns with the
entrepreneurial pursuit of innovation and business
success.
Entrepreneurs may start their businesses to satisfy higher-
order needs that go beyond just earning money, including
achieving personal fulfillment, creativity, or a sense of
accomplishment.
2. McClelland's Need for Achievement Theory (1961)
David McClelland identified three primary needs that drive
human behavior: achievement, affiliation, and power. For
entrepreneurs, the Need for Achievement is particularly
relevant:
• Need for Achievement (nAch): Entrepreneurs often have a
high desire for success, overcoming challenges, and
achieving goals. They are motivated by a desire to
accomplish difficult tasks and take calculated risks to
prove their capabilities.
• Need for Affiliation (nAff): Some entrepreneurs may be
driven by the desire to create relationships and be part
of a community.
• Need for Power (nPow): Others may be motivated by the
desire to influence or control their environment or
others.
High nAch individuals are particularly inclined to start
businesses as they seek to set and achieve personal goals.
3. Self-Determination Theory (Deci & Ryan, 1985)
Self-Determination Theory (SDT) emphasizes intrinsic
motivation, where individuals engage in activities for the
inherent satisfaction they bring, rather than for external
rewards. Entrepreneurs may be driven by:
• Autonomy: The desire for independence and control over
their work.
• Competence: The need to feel capable and effective in
their endeavors.
• Relatedness: The desire to connect with others and be
part of a community, such as through networking or
customer relationships.
According to SDT, entrepreneurs who find intrinsic
satisfaction in the entrepreneurial process are likely to be
more persistent and successful.
4. The Theory of Planned Behavior (Ajzen, 1991)
This theory suggests that an individual's intention to engage
in a behavior (like starting a business) is influenced by
three factors:
• Attitude: An entrepreneur’s positive or negative
evaluation of entrepreneurship (e.g., seeing it as a path
to personal success).
 • Subjective Norms: Social pressure or support for
entrepreneurship, such as the influence of family,
friends, and mentors.
• Perceived Behavioral Control: The entrepreneur’s belief
in their ability to succeed in starting and running a
business.
According to this theory, the more favorable the attitude
toward entrepreneurship, the greater the perceived social
support, and the higher the perceived control, the more likely
an individual is to start a business.
5. Herzberg’s Two-Factor Theory (1959)
Herzberg's theory focuses on what motivates people at work and
is often applied to entrepreneurship. It distinguishes
between:
• Hygiene Factors: These are basic needs that must be met
(e.g., salary, job security) to prevent dissatisfaction
but do not motivate individuals to perform beyond basic
expectations.
• Motivators: These are factors that truly drive
individuals to achieve higher levels of performance, such
as recognition, achievement, and personal growth.
For entrepreneurs, motivators like autonomy, challenge, and
the ability to innovate may be more influential than mere
financial reward or status.
6. The Expectancy Theory (Vroom, 1964)
Expectancy Theory suggests that individuals are motivated to
act in a certain way based on the expected outcomes of their
actions. In the context of entrepreneurship, the theory posits
that entrepreneurs are motivated when they believe that their
efforts will lead to desired outcomes, such as:
• Expectancy: The belief that increased effort will result
in better performance (e.g., believing that hard work
will lead to business success).
• Instrumentality: The belief that good performance will
lead to specific rewards (e.g., a successful business
will result in financial profit).
• Valence: The value an entrepreneur places on the rewards
(e.g., financial freedom, personal fulfillment).
If entrepreneurs perceive that their actions will lead to
valuable outcomes, they are more likely to be motivated to
take risks and put in the effort needed to succeed.
7. The Achievement Goal Theory (Dweck, 1986)
This theory is based on the idea that individuals are
motivated by different types of goals:
• Mastery Goals: Focusing on learning and self-improvement
(entrepreneurs driven by personal growth and skill
acquisition).
• Performance Goals: Focusing on proving one’s ability and
outperforming others (entrepreneurs motivated by success
and recognition).
Entrepreneurs who are driven by mastery goals may be more
resilient in the face of failure, as they are more focused on
learning from mistakes than on avoiding failure.
8. Locus of Control (Rotter, 1966)
Locus of control refers to the extent to which individuals
believe they have control over the outcomes of their actions.
Entrepreneurs with an internal locus of control believe they
can influence their business outcomes through their efforts,
while those with an external locus of control believe that
external factors (luck, fate, or other people) primarily
determine their success.
Entrepreneurs with an internal locus of control are often more
motivated, proactive, and resilient in the face of challenges,
as they feel empowered to take control of their fate.
9. Social Cognitive Theory (Bandura, 1986)
Albert Bandura’s Social Cognitive Theory emphasizes the role
of self-efficacy in motivation. Self-efficacy is an
individual’s belief in their ability to successfully perform
tasks and achieve goals. For entrepreneurs, high self-efficacy
can significantly boost motivation by enhancing their
confidence in launching and managing their ventures.
Entrepreneurs who believe they can successfully navigate
challenges are more likely to persist in the face of setbacks
and take calculated risks.

Conclusion
Entrepreneurial motivation is a complex interplay of intrinsic
and extrinsic factors. Theories like Maslow's Hierarchy of
Needs, McClelland's Need for Achievement, and Self-
Determination Theory provide frameworks for understanding why
individuals become entrepreneurs and what keeps them
motivated. Whether driven by a need for autonomy, achievement,
or the desire to make a societal impact, these theories help
explain the diverse motivations behind entrepreneurial
ventures.