Ent300 - Chapter 2

ENTREPRENEURIAL MOTIVATION
AND COMPETENCIES
EDITED BY :Siti Hajar Aznam
SOURCE : Assoc. Prof. Dr Nawawi
Objectives
Students should be able to:
• Explain and demonstrate the key entrepreneurial motivation
• Explain and demonstrate competencies of successful entrepreneur
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.
1. 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.

2. 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.

3. 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
• To excel with self imposed standard
• 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.
• 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
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 learner
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
• 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.
PERSONAL ENTREPRENEURIAL 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
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.
Examples
• 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 opportunities.
Examples
• 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.
Examples
• Sees 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.
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
• Does 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 Orientation 
A 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 Planning 
An 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 Solving 
Successful entrepreneur identifies new and potentially unique ideas to achieve
his goals.
Examples
• 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. Assertiveness 
An 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 Strategies 
An 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
THE END & THANK YOU

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ENTREPRENEURIAL MOTIVATION

• Motivational theories are based on the idea that behavior is essentially

• Thus entrepreneurial motivation is viewed as the willingness of an

• The need for Power (n Pow)

• The need for affiliation (n Aff)

• Achievement motive - drive to do well, strive for excellence and overcome

The need for Power (n Pow)

The need for aﬃliation (n Aﬀ)

• Affiliation motive - drive to establish, maintain or renew affective relationship with

• Need for achievement also known as urge to improve.

• They potentially to be good managers, executive or supervisors.

• They potentially to be good social workers

• As an entrepreneur the need for affiliation to certain extent may contribute

2. Calculated risk taking

3. Internal locus of control

4. Tolerance for failure

6. Integrity and reliability

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

• Takes action in the face of a significant obstacle

• Accepts full responsibility for problems in completing a job for customers

• Uses information or business tools to improve efficiency

• Develops plans that anticipate obstacles

• Generates new ideas or innovative solutions

• Tells others what they have to do

• Convinces someone to provide financing

• Uses influential people as agents to accomplish own objectives

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