ent/etr300 – fundamentals of entrepreneurship entrepreneurial motivation & competency...

ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP

ENTREPRENEURIAL MOTIVATION & COMPETENCY

ENTREPRENEURIAL ENTREPRENEURIAL MOTIVATION AND MOTIVATION AND COMPETENCIESCOMPETENCIESAssoc. 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• 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.


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)




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 individual’s 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 entrepreneurship.

• Individual with high need for achievement found in most good business founder.

• Need for achievement also known as urge to improve.



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.





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

Common characteristics associated with achievement oriented entrepreneurs



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






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


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.




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




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.






Besides the three social motives, a successful entrepreneur should also have the competence motivation

• Competence motivation Is a drive to do high quality work.

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.



Competence motivation



PERSONAL ENTREPRENEURIAL PERSONAL ENTREPRENEURIAL COMPETENCIES (PECs)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



1. InitiativeThe 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

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




3. PersistenceAn 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




4. Information SeekingAn 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




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




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




7. Efficiency OrientationA 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




8. Systematic PlanningAn entrepreneur develops and uses logical, step-by-step 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




9. Problem SolvingSuccessful 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




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




11.AssertivenessAn 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




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




13.Use of Influence StrategiesAn 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




END OF MODULE 2

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