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Assoc. Prof. Dr Nawawi B Mohd Jan

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

Entrepreneurial Motivation
What make people responsive to opportunity?
What drive them to entrepreneurship?

Answering these question entail the examination of entrepreneurial


Motivation is defined as a drive that cause a

person to take some goal oriented action.
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.

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.
All three motives may exist together in a person
But one usually more dominant than the other motives for most
of the individuals actions.

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
Individual with high need for achievement found
in most good business founder.
Need for achievement also known as urge to

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.

High need for affiliation (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.

Common characteristics associated with

achievement oriented entrepreneurs
1. Drive to achieve
Internally driven self starter with strong desire to:
To compete with others
ii. To excel with self imposed standard
iii. To pursue and attain challenging goal

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

3. Internal locus of control

They belief that success or failure is determined by their own effort.
ii. They belief in themselves
iii. They do not belief that success or failure of their ventures were determined by
fate or luck
iv. This behavior is consistent with self confidence and desire to take personal

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.

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

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.

Competence motivation
Besides the three social motives, a successful entrepreneur should also have the
competence motivation
1. Competence motivation Is a drive to do high quality work.

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.

the key characteristics that should be possessed by successful
entrepreneurs in order to perform entrepreneurial functions

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.
Does things before being asked or compelled by the situation.
Acts to extend the business into new areas, products or services
2. Sees and acts on opportunities
An entrepreneur always looks for and takes action on
Sees and acts on new business opportunities
Seizes unusual opportunities to obtain financing,
equipment, land, work space or assistance

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.
Takes repeated or different actions to overcome an obstacle
Takes action in the face of a significant obstacle
4. Information Seeking
An entrepreneur is able to take action on how to seek information to help
achieve business objectives or clarify business problems.
Does personal research on how to provide a product or service
Consults experts or experienced persons to get relevant
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

5. Concern for High Quality of Work

An entrepreneur acts to do things that meet certain standards of excellence
which gives him greater satisfaction.
States a desire to produce or sell a top or better quality product or
Compares own work or own company's work favorably to that of
6. Commitment to Work Contract
An entrepreneur places the highest priority on getting a job completed.
Makes personal sacrifice or expends extraordinary effort to
complete a job
Accepts full responsibility for problems in completing a job for
Pitches in with workers or works in their place to get the job done
Expresses a concern for satisfying the customer

7. Efficiency Orientation
A successful entrepreneur always finds ways to do things faster or with
fewer resources or at a lower cost.
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
8. Systematic Planning
An entrepreneur develops and uses logical, step-by-step plans to reach
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

9. Problem Solving
Successful entrepreneur identifies new and potentially unique ideas to
achieve his goals.
Switches to an alternative strategy to reach a goal
Generates new ideas or innovative solutions
A successful entrepreneur has a strong belief in self and own abilities.

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

An entrepreneur confronts problems and issues with others directly.

Confronts problems with others directly

Tells others what they have to do

Reprimands or disciplines those failing to perform as expected

An entrepreneur can successfully persuade or influence others for
mobilizing resources, obtaining inputs, organizing productions and selling
his products or services.
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
Asserts strong confidence in own company's products or services

13.Use of Influence Strategies

An entrepreneur is able to make use of influential
people to reach his business goals.
Acts to develop business contracts
Uses influential people as agents to accomplish own
Selectively limits the information given to others
Uses a strategy to influence or persuade others