Motivation in Entrepreneurship

12 Key excerpts on "Motivation in Entrepreneurship"

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  Women Empowerment through Entrepreneurship

  • Margaret F. Bello(Author)
  • 2019(Publication Date)
  • Society Publishing

    (Publisher)

  2.2 MOTIVATION—AN IMPORTANT FACTOR Figure 2.2: Motivation. Source https://news.usc.edu/ Entrepreneurship Development 41 The performance of an entrepreneur is strongly dependent on his/ her potential and wish to perform. Here, by potential we mean access of education, skill, and experience and by wish means to perform depending upon the level of motivation. Motivation is one of the fundamental factor required for an entrepreneur to promote his/her ideas. 2.2.1 Need for Motivation The term motivation has been derived from the word “motive” which is nothing but what prompts any person to act in a particular manner. Motives acts as a catalyzer for a person’s goals, dreams, and needs. They give direction human behavior towards achieving their end goal. What is the need of motivation when everything is properly organized? The following points answer this question and give an idea why motivation is a crucial factor for an entrepreneur: • Tough competition —In order to excel and make a territory in this global market an entrepreneur have to face tough competition. To cope with this competition, inspiration is required at each stage of the firm to keep moving. • Unfavorable environment —Nobody knows the future holdings. One has to take care of the current economy and should be prepared for the worst condition of declining economic state. For this, motivation and optimism are necessary. • To create public demand —Market runs for the people and by the people. To run a profitable business, it is required to create a public demand for your product or service in the market and attract as many customers as possible. Motivation is required, for doing this in the right way. • To enhance creativity —Marketplace constantly needs innovation that is something new and specific. If each firm will manufacture the equal product without any version then there may be no point of following one brand specifically. To preserve in the marketplace, one needs to be revolutionary.

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  Building 21st Century Entrepreneurship

  • Aude d'Andria, Inès Gabarret(Authors)
  • 2017(Publication Date)
  • Wiley-ISTE

    (Publisher)

  The second concept developed concerns the process of creation. The entrepreneurial theory used to explain this process is a causal one, starting by the fixation of objectives, the gathering of resources and the implementation of a strategy to attain these goals. However, recent studies on entrepreneurial processes have questioned this approach and propose new alternatives to understand business creation, such as the ones of effectuation and bricolage.

  Objectives of this chapter:

  • – Review and extend the understanding of entrepreneurial motivation.
  • – Introduce the new approaches to explain the entrepreneurial process.

  6.1. A fresh approach to the study of entrepreneurial motivation

  As Carsrud and Brannback pointed out in their article in the Journal of Small Business Management in 2011, entrepreneurial research may have abandoned too early without thoroughly exploring some fields of study. Among them, they cite the theories and approaches to entrepreneurial motivation [CAR 11].

  6.1.1. The opportunity/necessity model of entrepreneurship

  Much of the economic literature on entrepreneurship assumes that the decision to start a business is the result of a maximization process in which the individual compares the incomes from different activities and chooses the one that will provide the highest return [ARE 05].

  It is widely acknowledged that entrepreneurs exploit opportunities and pursue economic goals. An entrepreneurial opportunity is the discovery of the possibility of earning entrepreneurial profit [SHA 00]. Entrepreneurial profit is made when new goods or services can be sold at a higher price than their cost of production [CAS 03]. Opportunity-driven entrepreneurship thus concerns those individuals who are looking to become independent or to improve, and not just maintain, their income [KEL 11].

  According to the entrepreneurship literature, motivation can be studied through two types of theories: “drive” theories and “incentive” theories. The former is focused on internal tension (need) and holds that reducing the tension activates motivation. In this approach, a tension pushes individuals through entrepreneurial creation. The latter suggests that certain goals will pull the individual toward entrepreneurship. Pull factors dominate in incentive theories, whereas push factors dominate in drive theories [CAR 11].

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  Fostering Entrepreneurship in Georgia

  • Smita Kuriakose(Author)
  • 2013(Publication Date)
  • World Bank

    (Publisher)

  Motivations for Entrepreneurs Entrepreneurs view opportunities in the economy by measuring their profit-making potential; that is their first motivation. Entrepreneurs will not pur- sue a societal need unless they can successfully make a profit. They are motivated by the accumulation of wealth but also by the need to achieve (Shane, Locke, Determinants Entrepreneurial performance Impact Access to finance Skills and education Culture Job creation Economic growth Poverty reduction Regulatory framework Market conditions R&D technology Firm-based indicators Employment- based indicators Macro/ country-level indicators Figure 1.1 Conceptual Framework Source: OECD 2009 with some modifications. Note: R&D = research and development. What Drives Entrepreneurship and Economic Growth? 9 Fostering Entrepreneurship in Georgia • http://dx.doi.org/10.1596/978-1-4648-0062-7 and Collins 2003). Despite being risk takers, they may not seek out the riskiest opportunities, but they are willing to take on some risk. Entrepreneurs evaluate opportunities in the marketplace differently depending on how they perceive the level of risk and assess the capacity for mitigating it. Several external factors influ- ence the level of risk, such as environmental regulations, political attitudes, indus- try regulation, industry health, state of technology, market size, and availability of resources, including venture capital and skilled labor (Hayter 2011). Entrepreneurs may be pushed into self-employment and starting a business by necessity—that is, the lack of other employment options and the need for income. Alternatively, they may be pulled into starting a business because they recognize opportunities and choose to pursue them. Necessity-driven entrepreneurship is expected to be more prevalent in less developed and developing (factor-driven) economies.

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  Immigrant Entrepreneurship

  Cases from Contemporary Poland

  • Beata Glinka, Adam Jelonek, Beata Glinka, Adam W. Jelonek, Adam Jelonek, Beata Glinka, Adam W. Jelonek(Authors)
  • 2020(Publication Date)
  • Routledge

    (Publisher)

  In most studies, the authors emphasise the huge positive impact of entrepreneurship on economic growth (Acs, 2006; Braunerhjelm, Acs, Audretsch, & Carlsson, 2010; Praag & Versloot, 2007). Different aspirations of entrepreneurs shape their different activities in the context of running a company and thus different effects may emerge (Wiklund & Shepherd, 2003). Motivations are at the heart of aspirations (Amit, MacCrimmon, Zietsma, & Oesch, 2001), and for an individual to set up a business, there must be the desire and opportunity to do so (Praag & Ophem, 1995). The basic division of motives for starting a business is based on opportunity or necessity (“pull” and “push” factors) (Acs, 2006). Considering the types of pull motivation, the most frequently studied is autonomy/independence (Shane, Kolvereid, & Westhead, 1991; van Gelderen, Thurik, & Bosma, 2006). However, people choose the path of an entrepreneur because of life events, not because they dream about this kind of career. For example, people can create a business when they cannot find a job (Amit & Muller, 1995). Entrepreneurial motives can be also analysed from the point of view of psychological theories describing the intention-based model (Krueger, 1993; Shapero, 1975). For the decision to start a business to be made, a person must be convinced that it is highly possible and desirable.

  However, depending on the culture, entrepreneurship is perceived differently and develops differently (Glinka, 2008). In analyses of the entrepreneurship activities of immigrants, these cultural differences can be noticed in values and motives, as well as the strategies applied (Dana, 1993).

  For many immigrants, entrepreneurship is the only way to make money and be able to stay in the host country, hence the analysis of motivation requires a different approach than the classical theories about entrepreneurs in general (Freitas, 1991). In the case of immigrant entrepreneurship, the key factors affecting the reasons for starting a business are market disadvantages and ethnic resources (Aldrich & Waldinger, 1990; Light, 1979) and the individual characteristics of an immigrant (Dana, 1997).

  4.3 Immigrant entrepreneurship motivation

  As I mentioned before, one of the most popular theories explaining entrepreneurial motivations is related to “push” and “pull” factors, affecting the choice between self-employment and paid employment (Basu, 1998; Masurel, Nijkamp, Tastan, & Vindigni, 2002; Metcalf, Modood, & Virdee, 1996). “Push” factors to self-employment will include: unemployment (Masurel et al., 2002), lack of education and skills (Kloosterman, van der Leun, & Rath, 1998), low language proficiency (Clark & Drinkwater, 2000) and social exclusion (Ram & Smallbone, 2003). The disadvantage theory is related to “push” factors and suggests that for immigrants, creating their own business is a form of necessity entrepreneurship, as immigrants are forced to do so (Chrysostome, 2010) and explains how discrimination in the job market pushes them into self-employment (Light, 1979).

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  Building Businesses in Emerging and Developing Countries

  Challenges and Opportunities

  • Elie Virgile Chrysostome, Rick Molz(Authors)
  • 2014(Publication Date)
  • Taylor & Francis

    (Publisher)

  et al. (2011) on Malaysian university graduates found that there is no strong relationship between entrepreneurial intention and independence.

  Drive can be defined as the willingness to invest effort in thinking of and bringing ideas into reality, and is considered another motivational factor to become an entrepreneur. Shane et al. (2003) mentioned that there are some relations between drive and n-Ach. However, they have used drive in a broader perspective than the need for achievement. They referred to drive as the willingness to make efforts, tangible and intangible, and to bring ideas to reality. They have further explained drive in terms of “ambition, goals, energy and stamina, and persistence” (Locke and Latham, 1990). Ambitions affect the level of desire of entrepreneurs to create something great, eventful and meaningful, and to have influence on others. Higher levels of goal setting will drive entrepreneurs to hard work and better performance; the higher level of persistence will make them more agile in the face of challenges to materializing their ambitions.

  Another human motivational factor that Shane et al. (2003) mentioned in their seminal work is the egoist passion to create an organization and to make it profitable. That means entrepreneurs love their entrepreneurial process passionately and egoistically and work relentlessly toward success of their ventures. True entrepreneurs invest most of their energy and passion in the success of entrepreneurial projects they believe in and they love the process of building an organization and making it profitable (Shane et al. , 2003). Dej (2008: 90) defined egoistic passion as acting in one’s own interests and passion in following own goals and sacrificing other things to follow one’s own priorities. Baum et al. (2001) and Shane et al.

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  Fostering Entrepreneurship in Armenia

  • Smita Kuriakose(Author)
  • 2013(Publication Date)
  • World Bank

    (Publisher)

  Motivations for Entrepreneurs Entrepreneurs view opportunities in the economy by measuring their profit- making potential; that is their first motivation. Entrepreneurs will not pursue a societal need unless they can successfully make a profit. They are motivated by the accumulation of wealth but also by the need to achieve (Shane, Locke, and Determinants Entrepreneurial performance Impact Access to finance Skills and education Culture Job creation Economic growth Poverty reduction Regulatory framework Market conditions R&D technology Firm-based indicators Employment- based indicators Macro/ country-level indicators Figure 1.1 Conceptual Framework Source: OECD 2009 with some modifications. Note: R&D = research and development. What Drives Entrepreneurship and Economic Growth? 11 Fostering Entrepreneurship in Armenia • http://dx.doi.org/10.1596/978-1-4648-0064-1 Collins 2003). Despite being risk takers, they may not seek out the riskiest opportunities, but they are willing to take on some risk. Entrepreneurs evaluate opportunities in the marketplace differently depending on how they perceive the level of risk and assess the capacity for mitigating it. Several external factors influence the level of risk, such as environmental regulations, political attitudes, industry regulation, industry health, state of technology, market size, and avail- ability of resources, including venture capital and skilled labor (Hayter 2011). Entrepreneurs may be pushed into self-employment and starting a business by necessity—that is, the lack of other employment options and the need for income. Alternatively, they may be pulled into starting a business because they recognize opportunities and choose to pursue them. Necessity-driven entrepre- neurship is expected to be more prevalent in less developed and developing (factor-driven) economies.

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  The Wiley Handbook of Entrepreneurship

  • Gorkan Ahmetoglu, Tomas Chamorro-Premuzic, Bailey Klinger, Tessa Karcisky, Gorkan Ahmetoglu, Tomas Chamorro-Premuzic, Bailey Klinger, Tessa Karcisky(Authors)
  • 2017(Publication Date)
  • Wiley-Blackwell

    (Publisher)

  Drawing on self-determination theory (Ryan & Deci, 2000), they found that social entrepreneurs Review Findings 215 experienced relatively higher levels of intrinsic and lower levels of extrinsic motivation and amotivation. Social entrepreneurs also reported lower public service motivation and experienced generally higher levels of work satisfaction than employed managers in government organizations (Chen, 2012). With regard to the consequences of motives, studies investigated the success in creating a venture, venture survival, choice of legal structure for the venture, and the personal work satisfaction of the entrepreneur. A longitudinal study based on the US Panel Study of Entrepreneurial Dynamics found that entrepreneurs who reported prosocial motives at the beginning of the start-up process were less likely to have succeeded in creating an organization four years later compared to those reporting financial motives (Renko, 2013). The odds for the social entrepreneurs’ succeeding in creating their organization were further lowered when they also engaged in innovation. In a Spanish study, social compared to commercial entrepreneurs did not differ in the likelihood with which their ventures survived three and six years after they were started (Simón-Moya, Revuelto-Taboada, & Ribeiro-Soriano, 2012). Necessity- as opposed to opportunity-motivated commercial entrepreneurs had lower survival rates, but there were no differences between necessity- and opportunity-motivated social entrepre-neurs. The relative strength of prosocial and extrinsic motives was linked to the choice of legal form (for-profit versus nonprofit) for fair trade social entrepreneurs (Child, Witesman, & Braudt, 2015). However, personal work histories and experience of previ-ous work in the nonprofit versus for-profit sector appeared to be further influences on the choice of legal form.

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  Female Entrepreneurship in Transition Economies

  Trends and Challenges

  • V. Ramadani, S. Gërguri-Rashiti, A. Fayolle, V. Ramadani, S. Gërguri-Rashiti, A. Fayolle(Authors)
  • 2015(Publication Date)
  • Palgrave Macmillan

    (Publisher)

  In this chapter, we have explored motivations that influence women toward entrepreneurship. To do so, we first compared female and male entrepreneurs. Recent studies, however, have shown that this type of analysis is sub-optimal due to differences in motivations of the two sexes. We observed this in our literature review.

  To combat weaknesses of a comparison between sexes, we performed a review of motives specifically related to female entrepreneurs, independently of what had previously been established with respect to their male counterparts. We thus highlight the main reasons why women undertake entrepreneurial ventures under the framework of two classifications: first distinguishing between extrinsic, intrinsic, and transcendental motivations; second distinguishing between push and pull factors.

  Specifically, two concepts are especially important when seeking to understand the motivations of successful female entrepreneurs. As our analysis shows, these concepts are self-efficacy and a proactive personality. Self-efficacy may have a positive effect on how an individual operates, because that individual will consider all available options before choosing the most suitable one. In this way, people usually assess and evaluate their abilities. For entrepreneurs, an active personality is highly attractive. It represents a link between an individual and his or her influence on the environment. It is therefore said that proactive individuals seek opportunities, demonstrate initiative, and persevere until they achieve whatever change they are pursuing.

  This chapter is not free from limitations, although these limitations pave the way for future research opportunities. Primarily, we chose a typology to classify motivations (extrinsic, intrinsic, and transcendental) from all existing typologies. In future research, our analysis could be enhanced by studying other types of motivation related to female entrepreneurs.

  References

  Akehurst, G., Simarro, E., and Mas-Tur, A. (2012), Women entrepreneurship in small service firms: Motivations, barriers and performance, The Service Industries Journal , 32(15), 2489–2505.

  Anna, A. L., Chandler, G. N., Jansen, E., and Mero, N. P. (2000), Women business owners in traditional and non-traditional industries, Journal of Business Venturing

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  21st Century Management: A Reference Handbook

  • Charles Wankel, Charles B. Wankel(Authors)
  • 2007(Publication Date)
  • SAGE Publications, Inc

    (Publisher)

  60 T his chapter will discuss the factors that lead some entrepreneurs to keep trying until they succeed in business rather than being deterred by earlier fail-ure. Examples will be provided from Taiwanese entre-preneurs to illustrate concepts. Entrepreneurs are active dream makers and exploiters of opportunities in diverse areas including intrapreneurship, markets, and even social and political work. In the process of starting up new busi-nesses, entrepreneurs explore business potential based on their visions of how the future will turn out, and how they expect their own business identities to form. In order to re-alize value, entrepreneurs create new organizations, in turn adding competition for their industries. Their work often results in economic growth in the forms of an increase in jobs, an elevated technological horizon, and social wealth and renewal (Bednarzik, 000; Drucker, 1985). While en-trepreneurs invest with prosperous intentions, they also risk failure since entrepreneurship a demanding activity embedded in complicated contexts (Brockhaus, 1980; van Gelderen, Thurik, & Bosma, 006). Therefore, many entre-preneurial organizations emerge and then disappear within a short, incomplete life cycle. 7 E NTREPRENEUR R ESILIENCE What Makes Entrepreneurs Start Another Business After Failure? F U -S HENG T SAI I-Shou University Y UEH -C HIN C HEN Chao Yang University of Technology We shall finally try to round off our picture of the entrepreneurship in the same manner in which we always, in science as well as in practical life, try to understand human behavior, viz. by analyzing the characteristic motives of his conduct. Any attempt to do this must of course meet with all those objections against the economist’s intrusion into ‘psychology’ which have been made familiar by a long series of writers . . . There may be rational conduct even in the absence of rational motive.

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  Entrepreneurial Cognition: Exploring the Mindset of Entrepreneurs

  • Dean A. Shepherd, Holger Patzelt(Authors)
  • 2018(Publication Date)
  • Springer Open

    (Publisher)

  Journal of Business Venturing, 6 (6), 431–446. Shane, S., Locke, E. A., & Collins, C. J. (2003). Entrepreneurial motivation. Human Resource Management Review, 13 (2), 257–279. Shapiro, A., & Sokol, L. (1982). The social dimensions of entrepreneurship. In A. C. Kent, L. D. Sextopn, & H. K. Vesper (Eds.), Encyclopedia of entrepre-neurship (pp. 72–90). Shaver, K. G., & Scott, L. R. (2002). Person, process, choice. Entrepreneurship: Critical Perspectives on Business and Management, 2 (2), 334. Shaver, K. G., Gartner, W. B., Crosby, E., Bakalarova, K., & Gatewood, E. J. (2001). Attributions about entrepreneurship: A framework and process for analyzing reasons for starting a business. Entrepreneurship: Theory and Practice, 26 (2), 5–33. Shepherd, D. A. (2003). Learning from business failure: Propositions of grief recov-ery for the self-employed. Academy of Management Review, 28 (2), 318–328. Shepherd, D. A., & Cardon, M. S. (2009). Negative emotional reactions to proj-ect failure and the self-compassion to learn from the experience. Journal of Management Studies, 46 (6), 923–949. Shepherd, D. A., & DeTienne, D. R. (2005). Prior knowledge, potential fnancial reward, and opportunity identifcation. Entrepreneurship Theory and Practice, 29 (1), 91–112. MOTIVATION AND ENTREPRENEURIAL COGNITION 100 Shepherd, D. A., & Patzelt, H. (2015). Harsh evaluations of entrepreneurs who fail: The role of sexual orientation, use of environmentally friendly technolo-gies, and observers’ perspective taking. Journal of Management Studies, 52 (2), 253–284. Shepherd, D. A., Patzelt, H., & Wolfe, M. (2011). Moving forward from project failure: Negative emotions, affective commitment, and learning from the expe-rience. Academy of Management Journal, 54 (6), 1229–1259. Shepherd, D. A., Patzelt, H., & Baron, R. A. (2013). “I care about nature, but…”: Disengaging values in assessing opportunities that cause harm.

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  Communication Technology in Agriculture

  • Pradhan, Sudhir(Authors)
  • 2021(Publication Date)
  • Biotech

    (Publisher)

  Leaders on the other hand, used transformational influence to bring about changes in others attitudes, values and behaviours. This was done essentially through effectively articulating future goals or visions and empowering others to work toward the achievement of the goals. Vijaya and Kamalanabhan (1998) found out that power, self actualization and achievement motivation were significantly higher in entrepreneurs compare to economic and affiliation motivation. Vijaya and Kamalanabhan. (1998) stated that the single most important causative factor in the rise of entrepreneurship was achievement motivation. It was described as a social psychological drive among the people that lead to economic development of a country. The proposition that a high need for achievement was positively related to entrepreneurship. Factors Affecting Entrepreneurial Behaviour An overview of literature pertaining to factors affecting entrepreneurial behaviour of farmers is absolutely essential. Atkinson and Miller (1956) observed that the first born had higher achievement motivation than those later in birth. He further concluded that younger sons might have higher achievement motivation. Lionberger (1960) opined that there was positive association between extent, of farmers’ social participation and his level of adoption of innovations. Rani (1966} found out that educational background did not influence women in seeking entrepreneurship. Patel (1968) observed that trained farmers gained significantly higher adoption scores than non-trained farmers. In this study training refers whether an individual farmer had attended the farmers training programme and if so for how many days. Reddy and Kivlin (1968) stated that there was positive association between extent of farmer’s social participation and his level of adoption of innovations. Christopher (1969) found out that formal education was significantly associated with entrepreneurship.

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  Entrepreneurship

  Creativity and Innovative Business Models

  • Thierry Burger-Helmchen(Author)
  • 2012(Publication Date)
  • IntechOpen

    (Publisher)

  Of particular significance in this formulation is the notion of interaction. Rather than a manifestation of a separate part of the system, such as specific personality characteristics, creativity is seen as the sum total of the various system elements. The theoretical framework adopted in this paper is the interactionist view, which posits that the individual and context are engaged in a dialogue and that behaviour stems from the individual's interpretation of this context. This makes the entrepreneur the unit of observation, although it might just as well the organization, community or network. Although creativity research would benefit from a community-based approach, it has been left outside the scope of the present paper, which centres on the entrepreneur as an agent of organizational creativity. As evidenced by the brief review above, creativity requires an entrepreneur, a context and a process as well as interaction between these elements to produce a novelty, such as a Entrepreneurial Creativity as Discovery and Exploitation of Business Opportunities 15 business opportunity. This section aims at sinking its teeth into the heart of creativity and presenting its viewpoint on the topic. The goal will achieved by finding answers to the following questions: what does creativity mean to the entrepreneur, what is its role or significance to her and how does creativity function within the entrepreneur. In terms of the entrepreneur, the essence of creativity may be explored by asking what it means to the entrepreneur; or rather, what is entrepreneurial creativity. In other words, what happens within the entrepreneur, when she creates something new? What are the forces, desires or intentions that pull or push her forward? Then again, creativity might equally well turn out to be a commonplace and even constantly ongoing human activity, which just happens to produce something new and unique on particular occasions.

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