t3 the entrepreneurial motivation

The Entrepreneurial The Entrepreneurial MotivationMotivation

Mohamed Dahlan Ibrahim, Mohamed Dahlan Ibrahim, Ph.DPh.D

©2008©2008

APT 2013APT 2013 © 2008 drdellmy© 2008 drdellmy 22

Lecture OutlineLecture Outline

What is entrepreneurial motivation?What is entrepreneurial motivation? Sources of motivationSources of motivation Models of entrepreneurial motivationModels of entrepreneurial motivation Triggers and barriers to Triggers and barriers to

entrepreneurial motivationentrepreneurial motivation Ways to enhance entrepreneurial Ways to enhance entrepreneurial

motivationmotivation


What is EM?What is EM?

Entrepreneurial motivation refers Entrepreneurial motivation refers to the way in which urges, drives, to the way in which urges, drives, desires, striving, aspirations or desires, striving, aspirations or needs direct, control or explain needs direct, control or explain the entrepreneurial behavior of the entrepreneurial behavior of human beings.human beings.


Elements of EMElements of EM

Motive Motive

BehaviorBehavior GoalGoal

MotiveMotive

BehaviorBehaviorGoalGoal


Intention(Motive)

Effort

Barriers(External)

Barriers(Internal)

Help(Assistance)

Expectation(+ve/-ve)

Goal

Feelings(+ve/-ve)

Relationship between Relationship between Motive, Behavior & Motive, Behavior & GoalGoal

Activity


Sources of Sources of Entrepreneurial Entrepreneurial MotivationMotivation Internal/IntrinsicInternal/Intrinsic

– Personal goalsPersonal goals– Need for achievementNeed for achievement– AmbitionAmbition

External/ExtrinsicExternal/Extrinsic– CompulsionCompulsion– SupportSupport– Successful Successful

entrepreneursentrepreneurs– Access to capitalAccess to capital– StatusStatus


Models of EMModels of EM

Needs-based entrepreneurial Needs-based entrepreneurial motivationmotivation

A general model of entrepreneurial A general model of entrepreneurial motivationmotivation

Entrepreneurial intentions modelEntrepreneurial intentions model Enterprise formation modelEnterprise formation model Model of entrepreneurial Model of entrepreneurial

motivation and the entrepreneurial motivation and the entrepreneurial processprocess


David McClelland, Psychologist

(1917-98)

Needs-based Needs-based EntrepreneurialEntrepreneurialMotivationMotivation


David McClelland's David McClelland's Needs-Based Needs-Based Motivational ModelMotivational Model

Need for achievement (n-ach)Need for achievement (n-ach)– attainment of realistic but challenging goals, and attainment of realistic but challenging goals, and

advancement in the job. Feedback as to achievement advancement in the job. Feedback as to achievement and progress, and a sense of accomplishment.and progress, and a sense of accomplishment.

Need for authority and power (n-Need for authority and power (n-pow)pow)– influential, effective and to make an impactinfluential, effective and to make an impact , ,personal personal

status and prestige.status and prestige. Need for affiliation (n-aff)Need for affiliation (n-aff)

– friendly relationships and interaction with other friendly relationships and interaction with other peoplepeople

Need for security/safety (n-sec)Need for security/safety (n-sec)– Comfortable with secure employment and Comfortable with secure employment and

unwillingness to take higher riskunwillingness to take higher risk


Behavior of Behavior of Achievement-Achievement-Motivated PeopleMotivated People

AAchievement is more important than material chievement is more important than material or financial reward. or financial reward.

AAchieving the aim or task gives greater chieving the aim or task gives greater personal satisfaction than receiving praise or personal satisfaction than receiving praise or recognitionrecognition

FFinancial reward is regarded as a inancial reward is regarded as a measurement of success, not an end in itself. measurement of success, not an end in itself.

SSecurity is not prime motivator, nor is status. ecurity is not prime motivator, nor is status.



FFeedback is essential, because it eedback is essential, because it enables measurement of success, not enables measurement of success, not for reasons of praise or recognition. for reasons of praise or recognition.

AAchievement-motivated people chievement-motivated people constantly seek improvements and ways constantly seek improvements and ways of doing things better. of doing things better.

AAchievement-motivated people will chievement-motivated people will logically favor jobs and responsibilities logically favor jobs and responsibilities that naturally satisfy their needs, i.e. that naturally satisfy their needs, i.e. offer flexibility and opportunity to set offer flexibility and opportunity to set and achieve goals, e.g., sales and and achieve goals, e.g., sales and business management, and business management, and entrepreneurial roles.entrepreneurial roles.



CCapacity to set high apacity to set high personal but obtainable personal but obtainable goalsgoals

CConcern for personal oncern for personal achievement rather than the achievement rather than the rewards of successrewards of success

TThe desire for job-relevant he desire for job-relevant feedback (How well am I feedback (How well am I doing?) rather than for doing?) rather than for attitudinal feedback (How attitudinal feedback (How well do you like me?)well do you like me?)


A Model of Entrepreneurial MotivationA Model of Entrepreneurial Motivation

Expectation/Outcome

Comparison

Expectation/Outcome

Comparison

Decisionto behave

Entrepreneurially

Decisionto behave

Entrepreneurially

Implementation/Outcome

Perception

Implementation/Outcome

Perception

EntrepreneurialStrategy

EntrepreneurialStrategy

Intrinsic/ExtrinsicRewards

Intrinsic/ExtrinsicRewards

FirmOutcomes

FirmOutcomes

EntrepreneurialManagement

EntrepreneurialManagement

BE IDEA

PC PE PG

PC = Personal CharacteristicsPE = Personal EnvironmentPG = Personal GoalsBE = Business Environment

Source: Naffziger, Hornsby and Kuratko, (1994)Internal

Internal/External


Entrepreneurial Entrepreneurial Intentions ModelIntentions Model

Perceived netdesirability ofself-employment(NDSE)

Tolerance forrisk (TR)

Perceived feasibility (self-efficacy) of self-employment (SE)

Self-employment intentions

Source: Gerry Segal, Dan Borgia & Jerry Schoenfeld (2005)


Factors Critical to Start-Up Factors Critical to Start-Up & Reasons for Not Starting-& Reasons for Not Starting-UpUp

Source: Martyn Roberton et.al. (2003)


A Model of Enterprise FormationA Model of Enterprise Formation

PERSONAL BACKGROUND: Age Gender Previous employment Family and ethnic group Education

ENVIRONMENT: Industry Social Economic Political Infrastructure development

INTENTIONALITY

DECISION: ABANDON (Triggers < Barriers)

DECISION: START (Triggers > Barriers)

Source: Vollery, Mazzarol, Doss & Thein, 1997


Triggers to start upTriggers to start up

• Invest (need a job; way to personal savings, super, redundancy; earn a better salary)

• Creativity (take advantage of own talents; have an interesting job; create something new; realise a dream)

• Autonomy (work own hours, own location; be one’s own boss)

• Status (follow example of a person I admire; increase status/prestige; maintain family tradition)

• Market Opportunity (saw one)

• Money (make more, keep more RM)


Barriers to start up

• Lack of resources - lack of marketing skills, lack of management/financial expertise, lack of information, difficulty in obtaining finance

• Compliance costs - high taxes and fees, compliance with government regulation, problems finding suitable labour

• Hard reality - assessment that risks are greater than expected, uncertainty and fear of failure


Entrepreneurial Motivation & Entrepreneurial Motivation & Entrepreneurship ProcessEntrepreneurship Process

Source: Shane, et.al. (2003)


Entrepreneurial Behavior & Entrepreneurial Behavior & Favorable Business OutcomeFavorable Business Outcome


Pull FactorsPull Factors

Religious ValuesReligious Values– A lot of bounties in businessA lot of bounties in business– Follow the teachings of the Follow the teachings of the

religionreligion– Duty to lead a prosperous lifeDuty to lead a prosperous life

PsychologicalPsychological– Doesn’t like to be controlledDoesn’t like to be controlled– Want freedomWant freedom


Pull FactorsPull Factors

Riches and PowerRiches and Power– Rich and famousRich and famous– Sophisticated life-styleSophisticated life-style

Service to the SocietyService to the Society– Corporate social responsibilityCorporate social responsibility– Philanthropic activitiesPhilanthropic activities

Entrepreneurial CultureEntrepreneurial Culture– Entrepreneurial mindsetEntrepreneurial mindset– Business successionBusiness succession


Push FactorsPush Factors

FrustrationFrustration– Limited job mobilityLimited job mobility– VSS and “retrenchment”VSS and “retrenchment”– DissatisfactionDissatisfaction

NecessityNecessity– No jobsNo jobs– Need to support familyNeed to support family– Lack educational Lack educational

qualificationsqualifications


Barriers to Barriers to EntrepreneurshipEntrepreneurship ““Too much to lose”Too much to lose”

– Terlalu memikirkan apa yang akan Terlalu memikirkan apa yang akan berlaku kepada diri & keluarga berlaku kepada diri & keluarga sekiranya gagalsekiranya gagal

– Sikap takut kepada kegagalan yang Sikap takut kepada kegagalan yang tinggitinggi

– Sangsi dengan keupayaan diri sendiriSangsi dengan keupayaan diri sendiri– Terlalu mementingkan faktor jaminanTerlalu mementingkan faktor jaminan


Barriers to Barriers to EntrepreneurshipEntrepreneurship ““Personal inadequacy”Personal inadequacy”

– Saya terlalu tua atau terlalu muda Saya terlalu tua atau terlalu muda atau kurang pengalamanatau kurang pengalaman

– Terlalu membesarkan kekurangan Terlalu membesarkan kekurangan dan kelemahan diri sendiri.dan kelemahan diri sendiri.

– Menanggapi bahawa kegagalan Menanggapi bahawa kegagalan perniagaan membawa kesan yang perniagaan membawa kesan yang terlalu besarterlalu besar


Barriers to Barriers to EntrepreneurshipEntrepreneurship ““Fear of Competition”Fear of Competition”

– Bagaimana saya boleh bersaing Bagaimana saya boleh bersaing dengan mereka yang telah lama dengan mereka yang telah lama berniagaberniaga

– Takut kepada bayang-bayang Takut kepada bayang-bayang pesaing dan dihantui perasaan pesaing dan dihantui perasaan bahawa produk atau perkhidmatan bahawa produk atau perkhidmatan yang ditawarkan lebih “inferior” dari yang ditawarkan lebih “inferior” dari pesaingpesaing


Barriers to Barriers to EntrepreneurshipEntrepreneurship ““Lack of Capital”Lack of Capital”

– Terlalu membesarkan kekurangan Terlalu membesarkan kekurangan modal untuk memulakan perniagaanmodal untuk memulakan perniagaan

– Tidak ada modal, tak boleh berniagaTidak ada modal, tak boleh berniaga– Membesarkan kepayahan untuk Membesarkan kepayahan untuk

mendapatkan pembiayaanmendapatkan pembiayaan


Barriers to Barriers to EntrepreneurshipEntrepreneurship ““Lack of Opportunity”Lack of Opportunity”

– Terlalu membesarkan masalah Terlalu membesarkan masalah mendapatkan peluangmendapatkan peluang

– Peluang perlu dicariPeluang perlu dicari– Masalah kepada orang lain mungkin Masalah kepada orang lain mungkin

peluang kepada kitapeluang kepada kita– Guna “lubang” untuk cari lubang Guna “lubang” untuk cari lubang

(peluang)(peluang)


Factors in Factors in Entrepreneurial Entrepreneurial SuccessSuccess Achievement Oriented Personality Entrepreneurial Attitudes Belief in Self and Ability Social Context Precipitation Event Intention to Start a Venture Opportunity Recognition Controlling Resources Timing

t3 the entrepreneurial motivation

Documents