K. Ashok Kumar

Entrepreneurship Development

Lecturer, GIACR Rayagada

Why to start Business

Starting a small business can be both challenging and rewarding – find out the reasons why so many people start new businesses each year, what the advantages of starting a business? These questions need a deeper insight. Practically some of them become entrepreneurs even by choice, by chance, by compulsion or by tradition.

The person going to start a business must be determined to do so. This determination usually comes due to various reasons, some of which may be listed below,

Financial scarcity Failure to get job employment Pain of unemployment or

underemployment Self-employment Family problems Desire to be successful To utilize idle time and resources

To meet challenges To earn money To take advantage of business situation To utilize local resources To earn name and fame To utilize talent To prove to be competent Enviousness at other’s success

How to start Business

DETERMINE IDEA

SET EXIT EXPECTATIONS

RESEARCH YOUR MARKET

BUSINESS PLANNING

BUSINESS FORMATION

PRODUCT DEVELOPMENT

STAFFING

FUND RAISING

Entrepreneurship promotes capital formation by mobilizing the idle savings of the public.

It provides immediate large scale employment. Thus it helps reduce the Unemployment Problem in the country ,i.e., the root of all socio-economic problems.

It promotes balanced regional development.

It stimulates the equitable redistribution of wealth, income and even political power in the interest of the country.

It encourages effective resource mobilization of capital and skill which might other wise remain unutilized and idle.

It also induces backward and forward linkages which stimulate the process of Economic development in the country.

It also promotes country’s export trade, i.e., an important ingredient to economic development.

Motivation for Economic Development

Motivation ForEntrepreneurial Achievement

Motivation has been Derived from word – ‘Motive’ – to move. Motive may be defined as an inner state of our mind that moves or activates or energizes and directs our behavior towards our goals.

Motives are expressions of a person’s goals or needs. They give direction to human behavior to achieve goals or fulfill needs

Need or Importance of Entrepreneurial Motivation

Motivated Entrepreneur make optimum use of available resources for achieving objectives.

Motivation is directly related to the level of efficiency or Entrepreneur.

Motivated Entrepreneur make goal-directed efforts.

Motivation also helps in improving the image of an organization.

Entrepreneurial Achievement Motivation

Clayton Alderfer Theory

Entrepreneurial AchievementMotivation

McClelland identified three types of manifest needs

(1)Need for Power : “concern for influencing people”. politicians, social-religious leaders Chief Executive Officers, (CEOs), Government Bureaucrats/Civil Servants. based on the belief that the source of power lies in the “position” a person occupies in organizational/societal context.

(2) Need for Affiliation :  “readily thinks about interpersonal relationships”. “a tendency of the people to conform to the wishes and norms of those whom they value.” Social activists, environmentalists, teachers, and doctors and nurses.

(3) Need for Achievement : Need for Achievement Concerns issues of excellence, competition, challenging goals and overcoming difficulties. want to take personal responsibility for solving problem. Goal oriented, sets moderate, realistic, attainable goals. One also seeks challenge, excellence, and individuality. Takes calculated risk and willing to work hard

Mc Clelland’s Needs Theory of Motivation

 

Entrepreneurial Ambition:

1. to make money2. to gain social prestige3. to secure self employment

Compelling Reasons

1. Unemployment2. Dissatisfaction with existing job or occupation3. to use technical or professional knowledge

Facilitating Factors

1. Previous Knowledge, experience 2. Encouragement from family members, friends3. Imitation of successful entrepreneurs Factors for Entrepreneurial Motivation

Factors for Entrepreneurial Motivation