Entrepreneurial Motivation

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1 Entrepreneurial Motivation

1.1 Internal Factors

1.1.1 1. Desire to do something new:

1.1.2 2. Become independent:

1.1.3 3. Achieve, what one wants to have in life:

1.1.4 4. Be recognized for one’s contribution:

1.1.5 5. Educational background:

1.1.6 6. Occupational background and experience:

1.2 External Factors

1.2.1 1. Government assistance and support:

1.2.2 2. Availability of factors of production:

1.2.3 3. Encouragement from big business houses:

1.2.4 4. Promising demand for the product:

Motivation may be defined as the willingness to exert high levels of effort toward organizational goals, conditioned by the effort and ability to satisfy some individual need.

Entrepreneurial motivation is the process that motivates the entrepreneur to exert a higher level of effort for the achievement of his entrepreneurial goals. The motivational factors are the drivers within an entrepreneur that affect the direction and intensity of his behavior as an entrepreneur. They influence the entrepreneurial behavior and operation of the business.

Entrepreneurial motivation serves as fuel or power that makes the Organization run. The components of entrepreneurial motivation are as follows.

Internal Factors

They include;

1. Desire to do something new:

Human being by nature is always willing to do something new. It inspires people to be innovative to start up new ventures.

2. Become independent:

There are many people who do not wish to work for a salary. They want to be independent. For this, they are always willing to start their own business.

3. Achieve, what one wants to have in life:

People have a certain vision in their, life, To fulfill their own vision, they become entrepreneurs.

4. Be recognized for one’s contribution:

Some people are motivated to be recognized in society for their contribution. For this, they involve themselves in entrepreneurial activities.

5. Educational background:

Educated people are more prone to entrepreneurship. They apply their knowledge achieved through formal education in the entrepreneurial venture. Hence, a strong educational background also motivates people towards entrepreneurship.

6. Occupational background and experience:

Some people are motivated towards entrepreneurship due to their occupational background and the experience that they develop from working in relevant fields.

External Factors

They include:

1. Government assistance and support:

If the government assists and supports the people in establishing and operating businesses, it drives people towards entrepreneurship.

2. Availability of factors of production:

If there is the availability of factors of production such as capital, labor, technology, and raw material, it drives the people towards entrepreneurship. With an abundance of factors of production, businesses may be conducted more efficiently and effectively.

3. Encouragement from big business houses:

Big businesses require input from other businesses in the form of raw material or other products. In such a situation, they encourage people to start different ventures. It provides entrepreneurial motivation.

4. Promising demand for the product:

If the demand for products is high, there is a possibility of high sales as well as profit. The demand factor eventually drives people towards entrepreneurship.

Entrepreneurial Motivation | Internal factors | External Factors