How Motivation Infliuences Entrepreneurs

Need for Achievement:
David C. McClelland, a psychologist, the father of the Need for Achievement Theory posits that individuals who are high in N Ach are more likely than those who are low in N Ach to become entrepreneurs. This is because such individuals tend to engage in activities or tasks that have a high degree of individual responsibility for outcomes, require individual skill and effort, have a moderate degree of risk, and include clear feedback on performance. In a nutshell, these individuals effectively operate in situations in which they can achieve results through their own efforts, pursue moderately difficult goals and receive relatively immediate feedback on the outcomes of their performance (Unilag, 2007).

Risk taking Propensity:
Risk-taking propensity has been defined in the entrepreneurship literature as the willingness to take moderate risks (Begley, 1995). This motivational influence on entrepreneurship is an offshoot of the need for achievement factor, for individuals with a high need for achievement would have moderate propensities to take risk. This is because activities with moderate risk are challenging and at the same time appear to be attainable (Atkinson,
1957).


Tolerance for Ambiguity:
According to Budner (1962), an ambiguous situation is "one which cannot be adequately structured or categorized by an individual because of the lack of sufficient cues while he defined intolerance of ambiguity as the tendency to perceive ambiguous situations as sources of threat. And Teoh and Foo (1997) define tolerance of ambiguity as the ability to respond positively to ambiguous situations. Thus, because the entrepreneur creates a new business in an uncertain and risky situation, an individual that has intolerance for ambiguity cannot be an entrepreneur.


Locus of Control
This refers to the extent to which an individual believes in fate and their ability to control fate. Individuals who have an external locus of control believe that the outcome of an event is outside their control, and view fate as mainly determined by external forces and luck. On the other hand, individuals with an internal locus of control believe that their personal actions directly affect the outcome of an event. Thus, individuals with internal locus of control are propelled to become entrepreneurs because they believe that they control their fate (Rotter, 1966; UNILAG GST Module 1, 2007).


Self-efficacy
This is conceptualized as the belief in one’s ability to muster and implement the necessary personal resources, skills, and competencies to attain a certain level of achievement on a given task. Self-efficacy is basically, task-specific self-confidence (Bandura, 1997; Shane et al., 2010). An individual with high self-efficacy will take negative feedback in a more positive manner and use that feedback to improve his/her performance hence is more likely to become an entrepreneur.


Desire for Independence
This could be in terms of financial or job independence. Independence entails taking the responsibility to use one’s own judgment as opposed to blindly following the assertions of others. It also involves taking responsibility for one’s own life rather than living off the efforts of others. An entrepreneur is a decision maker and must have a mind of his/her own.
The entrepreneur gives the order, while others follow! Thus, once an individual desires to be independent and take total control of his/her life, then that person is propelled to become an entrepreneur.


Drive
Shane et al. (2003) used this concept to refer to the willingness to put forth effort (i.e. both the effort of thinking and the effort involved in bringing one’s ideas into reality). According to them there are four aspects of drive, namely: (1) ambition; (2) goals; (3) energy and stamina; and (4) persistence. Thus, once an individual has drive, he will be propelled to become an entrepreneur.


Egoistic passion
Shane et al. (2003) viewed egoistic passion as a passionate, selfish love of the work. According to them, the true or rational egoist passionately loves the work; loves the process of building an organization and making it profitable and is motivated to do what is actually in his/her own interest. Thus, once an individual has egoistic passion, then he/she is propelled to become an entrepreneur.