1. ENT/ETR300 â FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
ENTREPRENEURIAL
MOTIVATION AND
COMPETENCIES
2. ENT/ETR300 â FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
Learning Outcomes
By the end of the session, students
should be able to:
âą Explain and demonstrate the key
entrepreneurial motivation and
âą Explain and demonstrate competencies of
successful entrepreneurs
3. ENT/ETR300 â FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
Entrepreneurial Motivation
âą What make people responsive to
opportunity?
âą What drive them to entrepreneurship?
âą Answering these question entail the
examination of entrepreneurial motivation
âą Motivation is defined as a drive that
cause a person to take some goal
oriented action.
4. ENT/ETR300 â FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
Entrepreneurial Motivation
âą Motivational theories are based on the
idea that behavior is essentially
purposeful and directed towards the
attainment of certain goal.
âą Thus entrepreneurial motivation is viewed
as the willingness of an entrepreneur to
sustain his or her entrepreneurial
behavior.
5. ENT/ETR300 â 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:
âąThe need for achievement (n Ach)
âąThe need for Power (n Pow)
âąThe need for affiliation (n Aff)
6. ENT/ETR300 â FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
Entrepreneurial Motivation
The need for achievement (n Ach)
âą 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)
âą Power motive - drive to control, influence and to have
impact on others and change the situations.
The need for affiliation (n Aff)
âą Affiliation motive - drive to establish, maintain or
renew affective relationship with others.
7. ENT/ETR300 â FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
Entrepreneurial Motivation
âą All three motives may exist together in a
person
âą But one usually more dominant than the
other motives for most of the individualâs
actions.
8. ENT/ETR300 â FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
High need for achievement (high n Ach)
âą High need for achievement (high n Ach) has
been identified as the critical motive that
influence for most of venture creation and
entrepreneurship.
âą Individual with high need for achievement
found in most good business founder.
âą Need for achievement also known as urge to
improve.
9. ENT/ETR300 â FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
High need for power (high n Pow)
âą Individual with High need for power
(high n Pow) normally seek position of
leadership.
âą They potentially to be good managers,
executive or supervisors.
10. ENT/ETR300 â FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
High need for affiliation (n Aff)
âą 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.
âą They potentially to be good social workers
âą As an entrepreneur the need for affiliation to
certain extent may contribute to the drive for
maintaining effective business networking.
11. ENT/ETR300 â FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
Common characteristics associated with
achievement oriented entrepreneurs
Drive to achieve
âą Internally driven self starter with strong desire
to:
âą To compete with others
âą To excel with self imposed standard
âą To pursue and attain challenging goal
12. ENT/ETR300 â FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
Common characteristics associated with
achievement oriented entrepreneurs
Calculated risk taking
âą High achiever tend to take moderated or
calculated risk
â Examining the situation and determine
how to increase the chance of winning a
business situation
â They make their effort to get the odds in
their favor
â They do not take unnecessary risks
13. ENT/ETR300 â FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
Common characteristics associated with
achievement oriented entrepreneurs
Internal locus of control
âą They belief that success or failure is
determined by their own effort.
âą They belief in themselves
âą They do not belief that success or failure of
their ventures were determined by fate or luck
âą This behavior is consistent with self
confidence and desire to take personal
responsibility
14. ENT/ETR300 â FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
Common characteristics associated with
achievement oriented entrepreneurs
Tolerance for failure
âą High achievers take failure as a learning
experience.
âą Do not easily become disappointed, distress
or discouraged by any setback or difficulties
faced in the mist of business competition.
âą Many successful entrepreneurs belief that
they learn more from their earlier failure than
from their earlier success.
15. ENT/ETR300 â FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
Common characteristics associated with
achievement oriented entrepreneurs
Seeking Feedback
âą They have strong desire to actively seek and
used feed back to know how well they are
doing and how to improve their performance.
âą Most successful entrepreneurs are quick
learners
16. ENT/ETR300 â FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
Common characteristics associated with
achievement oriented entrepreneurs
Integrity and reliability
âą Integrity and reliability help to build and
sustain trust and confidence
âą This helps to endure the relationship
between entrepreneurs, partners, customers,
suppliers and stakeholders.
17. ENT/ETR300 â FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
Competence motivation
Besides the three social motives, a
successful entrepreneur should also have
the competence motivation
âą Competence motivation Is a drive to do high
quality work.
18. ENT/ETR300 â FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
Competence motivation
âą Competence motivated entrepreneur
â seek mastery in job or tasks that they are
undertaking,
â develop problem solving skill and
â strive to be innovative
âą In general they tend to perform good work
because the inner satisfaction they feel and
esteem they gain from others due to their
competence.
20. ENT/ETR300 â FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
Entrepreneurial Competencies
 McClelland and McBer (1985)
1. Initiative
The entrepreneur should be able to take actions that goÂ
beyond his job requirements and to act faster. He is alwaysÂ
ahead of others and able to become a leader in the field ofÂ
business.
Â
Examples
ï§ Does things before being asked or compelled by the
situation.
ï§ Acts to extend the business into new areas, products or
services
21. ENT/ETR300 â FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
Entrepreneurial Competencies
 McClelland and McBer (1985)
2. Sees and acts on opportunities
    An entrepreneur always looks for and takes action on   Â
    opportunities.
Â
Examples
ï§ Sees and acts on new business opportunities
ï§ Seizes unusual opportunities to obtain financing,
equipment, land, work space or assistance
22. ENT/ETR300 â FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
Entrepreneurial Competencies
 McClelland and McBer (1985)
3. Persistence
An entrepreneur is able to make repeated efforts or toÂ
take different actions to overcome an obstacle that getÂ
in the way of reaching goals.
Examples
ï§ Takes repeated or different actions to overcome an
obstacle
ï§ Takes action in the face of a significant obstacle
23. ENT/ETR300 â FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
Entrepreneurial Competencies
 McClelland and McBer (1985)
4. Information Seeking
An entrepreneur is able to take action on how to seekÂ
information to help achieve business objectives or clarifyÂ
business problems.
Examples
ï§ Does personal research on how to provide a product or service
ï§ Consults experts or experienced persons to get relevant
information
ï§ Seeks information or asks questions to clarify a client's or a
supplier's need
ï§ Personally undertakes market research, analysis or investigation
ï§ Uses contacts or information networks to obtain useful information
24. ENT/ETR300 â FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
Entrepreneurial Competencies
 McClelland and McBer (1985)
5. Concern for High Quality of Work
An entrepreneur acts to do things that meet certainÂ
standards of excellence which gives him greaterÂ
satisfaction.
Examples
ï§ States a desire to produce or sell a top or better quality
product or service
ï§ Compares own work or own company's work favorably
to that of others
25. ENT/ETR300 â FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
Entrepreneurial Competencies
 McClelland and McBer (1985)
6. Commitment to Work Contract
 An entrepreneur places the highest priority on getting aÂ
job completed.
Examples
ï§ Makes personal sacrifice or expends extraordinary effort
to complete a job
ï§ Accepts full responsibility for problems in completing a
job for customers
ï§ Pitches in with workers or works in their place to get the
job done
ï§ Expresses a concern for satisfying the customer
26. ENT/ETR300 â FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
Entrepreneurial Competencies
 McClelland and McBer (1985)
7. Efficiency Orientation
A successful entrepreneur always finds ways to do thingsÂ
faster or with fewer resources or at a lower cost.
Examples
ï§ Looks for or finds ways to do things faster or at less cost
ï§ Uses information or business tools to improve efficiency
ï§ Expresses concern about costs vs. benefits of some
improvement, change, or course of action
27. ENT/ETR300 â FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
Entrepreneurial Competencies
 McClelland and McBer (1985)
8. Systematic Planning
An entrepreneur develops and uses logical, step-by-
step plans to reach goals.
Â
Examples
ï§ Plans by breaking a large task down into sub-tasks
ï§ Develops plans that anticipate obstacles
ï§ Evaluate alternatives
ï§ Takes a logical and systematic approach to activities
28. ENT/ETR300 â FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
Entrepreneurial Competencies
McClelland and McBer (1985)
9. Problem Solving
Successful entrepreneur identifies new and potentially
unique ideas to achieve his goals.
Example
ï§ Switches to an alternative strategy to reach a goal
ï§ Generates new ideas or innovative solutions
29. ENT/ETR300 â FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
Entrepreneurial Competencies
McClelland and McBer (1985)
10.Self-Confidence
A successful entrepreneur has a strong belief in self
and own abilities.
Examples
ï§ Expresses confidence in own ability to complete a task
or meet a challenge
ï§ Sticks with own judgment in the face of opposition or
early lack of success
30. ENT/ETR300 â FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
Entrepreneurial Competencies
McClelland and McBer (1985)
11.Assertiveness
An entrepreneur confronts problems and issues with
others directly.
Examples
ï§ Confronts problems with others directly
ï§ Tells others what they have to do
ï§ Reprimands or disciplines those failing to perform as
expected
31. ENT/ETR300 â FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
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
ï§ Convinces someone to buy a product or service
ï§ Convinces someone to provide financing
ï§ Convinces someone to do something else that he would like
that person to do
ï§ Asserts own competence, reliability, or other personal or
company qualities
ï§ Asserts strong confidence in own company's products or
services
32. ENT/ETR300 â FUNDAMENTALS OF ENTREPRENEURSHIP
ENTREPRENEURIAL MOTIVATION & COMPETENCY
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
ï§ Acts to develop business contracts
ï§ Uses influential people as agents to accomplish own
objectives
ï§ Selectively limits the information given to others
ï§ Uses a strategy to influence or persuade others