Entrepreneurial Motivation
Class 11 Entrepreneurship — Understanding what drives entrepreneurs
What is Entrepreneurial Motivation?
Motivation
Process
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This cycle is continuous — once one need is satisfied, another unsatisfied need emerges.
Maslow's Hierarchy of Needs Theory
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McClelland's Theory of Needs
According to David McClelland, regardless of culture or gender, people are driven by three motives: Achievement, Affiliation, and Power. Since McClelland's first experiments, over 1,000 studies relevant to achievement motivation have been conducted. These studies strongly support the theory.
Need for Achievement
The wish to take responsibility for finding solutions to problems, master complex tasks, set goals and get feedback on level of success.
How to Motivate:
Standards of excellence, delineated roles and responsibilities, and concrete, timely feedback.
Need for Affiliation
A desire to belong, an enjoyment of teamwork, a concern about interpersonal relationships, and a need to reduce uncertainty.
How to Motivate:
When they can accomplish things with people they know and trust.
Need for Power
A drive to control and influence others, a need to win arguments, and a need to persuade and prevail.
How to Motivate:
When people are allowed to have an impact, impress those in power, or beat competitors.
From a manager's perspective, recognising which need is dominant in any particular individual affects the way in which that person can be motivated. Entrepreneurs often exhibit a high need for achievement.
Think about it: Why did Dhirubhai Ambani keep expanding Reliance even after becoming one of India's richest men? He didn't need more money (physiological needs were long satisfied) — he was driven by the need for achievement and power. That's McClelland's theory in action.