ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

ENTREPRENEURIAL MOTIVATION & COMPETENCY

ENTREPRENEURIAL
MOTIVATION AND
COMPETENCIES

ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

ENTREPRENEURIAL MOTIVATION & COMPETENCY

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

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ENTREPRENEURIAL MOTIVATION & COMPETENCY

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.

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ENTREPRENEURIAL MOTIVATION & COMPETENCY

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.

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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)

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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.

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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 individuals actions.

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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.

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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.

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ENTREPRENEURIAL MOTIVATION & COMPETENCY

HIGH NEED FOR AFFILIATION

(HIGH 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.

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ENTREPRENEURIAL MOTIVATION & COMPETENCY

Common characteristics associated with

achievement oriented entrepreneurs

1. 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

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ENTREPRENEURIAL MOTIVATION & COMPETENCY

Common characteristics associated with

achievement oriented entrepreneurs
2.

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

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ENTREPRENEURIAL MOTIVATION & COMPETENCY

Common characteristics associated with

achievement oriented entrepreneurs
3. 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

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ENTREPRENEURIAL MOTIVATION & COMPETENCY

Common characteristics associated with

achievement oriented entrepreneurs
4.

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.

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ENTREPRENEURIAL MOTIVATION & COMPETENCY

Common characteristics associated with

achievement oriented entrepreneurs
5.

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

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ENTREPRENEURIAL MOTIVATION & COMPETENCY

Common characteristics associated with

achievement oriented entrepreneurs
6.

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.

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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.

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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.

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ENTREPRENEURIAL MOTIVATION & COMPETENCY

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

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ENTREPRENEURIAL MOTIVATION & COMPETENCY

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

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ENTREPRENEURIAL MOTIVATION & COMPETENCY

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

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ENTREPRENEURIAL MOTIVATION & COMPETENCY

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

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ENTREPRENEURIAL MOTIVATION & COMPETENCY

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

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ENTREPRENEURIAL MOTIVATION & COMPETENCY

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

ENT/ETR300 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 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

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ENTREPRENEURIAL MOTIVATION & COMPETENCY

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

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ENTREPRENEURIAL MOTIVATION & COMPETENCY

Entrepreneurial Competencies
McClelland and McBer (1985)

8. Systematic Planning
An entrepreneur develops and uses logical, step-bystep 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

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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
Switches to an alternative strategy to reach a goal
Generates new ideas or innovative solutions

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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
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

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ENTREPRENEURIAL MOTIVATION & COMPETENCY

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

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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

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

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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
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

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ENTREPRENEURIAL MOTIVATION & COMPETENCY