t3 the entrepreneurial motivation
TRANSCRIPT
The Entrepreneurial The Entrepreneurial MotivationMotivation
Mohamed Dahlan Ibrahim, Mohamed Dahlan Ibrahim, Ph.DPh.D
©2008©2008
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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
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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.
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Elements of EMElements of EM
Motive Motive
BehaviorBehavior GoalGoal
MotiveMotive
BehaviorBehaviorGoalGoal
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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
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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
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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
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David McClelland, Psychologist
(1917-98)
Needs-based Needs-based EntrepreneurialEntrepreneurialMotivationMotivation
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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
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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.
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Behavior of Behavior of Achievement-Achievement-Motivated PeopleMotivated People
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.
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Behavior of Behavior of Achievement-Achievement-Motivated PeopleMotivated People
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?)
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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
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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)
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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)
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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
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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)
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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
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Entrepreneurial Motivation & Entrepreneurial Motivation & Entrepreneurship ProcessEntrepreneurship Process
Source: Shane, et.al. (2003)
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Entrepreneurial Behavior & Entrepreneurial Behavior & Favorable Business OutcomeFavorable Business Outcome
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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
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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
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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
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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
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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
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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
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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
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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)
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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