Behavior is a manifestation of what a person thinks, feels and acts.

An
entrepreneur is a creative person. Human behavior is goal directed or is
directed towards satisfaction of needs. Whenever a person feels any need,
he feels uneasy and tension starts building in his mind. This tension provokes
him to initiate some action that may lead to the satisfaction of the need. If that
need is not satisfied that individual is reuired to resort to come alternate
action for the satisfaction of the need.
!otivations refer to the inner urge that ignites and sustain behavior to
satisfy need. !otivation has been derived from the word "motive# which
implies the inner state of mind that activates or provokes and directs our
behavior towards the goal. TH$%&I$' %( !%TI)ATI%*
*eed is the starting point of motivation. A satisfied need does not motivate
an individual. It is only the unsatisfied need that creates tension and
stimulates drives within the individuals for the satisfaction of the need and
reduction of tension. )arious researchers are actively engaged in finding
answer to one basic uestion i.e., what motivates people+ %r what makes
them work+ ,ifferent e-perts to focus attention on this basic issue have
propounded various theories.
MASLOWS
Maslows theory is based on human needs. He developed a conceptual
framework for understanding human behavior. He was of the opinion that
every individual has a comple- set of e-ceptionally strong needs and the
behavior of an individual at a particular moment of time is usually determined
by his strongest needs. !aslow felt that the "needs have a definite seuence
of domination# second need does not dominate till first need us satisfied and
third need does not dominate till firs two needs have been reasonably
satisfied. !an is never fully satisfied, if one need is satisfied the other will
arise and so on.

exceptions and these are.
I. (or some people self/esteem seems to be more important than love.
They may be deprived of their lower level needs and yet may strive for
self/actuali0ation needs. 1ertain people may attach more importance
to esteem needs than social needs.
II. 'ome creative people, though lacking in basic needs, may attain self/
actuali0ation.
III. *eed and satisfaction of need is a psychological feeling. 'ometimes a
person may not be aware of his own needs.
IV. There are many other determinants of behavior other than needs and
desires. Thus the behavior of a person may not be wholly linked with his
needs and desires.
McCLELLANDS THREE NEED MODEL
Need o! ac"ie#e$ent% && It is a drive to e-cel, advance and grow. This
refers to one#s desire to achieve something with own efforts. 2eople with a
higher need for achievement derive satisfaction from achieving goals.
Need o! powe!% && A drive to influence others and situations. It refers to
one#s desire to influence and dominate others through use of authority.
Achievement of goals is less important than the means by which goals are
achieved.
Need o! ailiation% && A drive for friendly, and close interpersonal
relationships. It refers to one#s desire to establish and maintain friendly
relationship with others. 2eople with affiliation need derive satisfaction from
social and inter personal activities. Affiliation plays a very vital roe n human
behavior.
ALDER'ERS ER( THEOR)
3. Existence needs% && This e-istence needs combine the physiological and
safety needs of !aslow. These e-istence needs can be satisfied by material
or financial incentives and include survival needs, physical and psychological
safety etc.
4. Relatedness needs% && These include !aslow#s social and esteem needs,
which are derived from other people. 2ersonal relations and social
interactions satisfy these needs.
5. (!owt" needs% && these include !aslow#s self/actuali0ation needs. These
needs will be satisfied only if an individual involves himself in activities of the
organi0ation and is always on the lookout for new challenges and
opportunities.
The above nine factors were grouped into two ma6or categories/ Internal
and $-ternal. These factors generate an inclination to adopt entrepreneurial
activity.
A. (actors internal to the entrepreneur
'trong desire to do something independent in life
Technical knowledge and7or manufacturing e-perience
Business e-perience in the same line
*. (actors e-ternal to the entrepreneurs
(inancial assistance from institutional sources
Accommodation in industrial estates
!achinery on hire purchase
Attitude of the government to help new units
(inancial assistance from non government sources
$ncouragement from big business
Heavy demand
2rofit margin
8nsound units available at a cheap price