The Concept of Entrepreneurship in External and Internal Motivation to Start a Business

  

Date Posted: 12/19/2017 1:11:56 PM

Posted By: Alambi  Membership Level: Gold  Total Points: 2017

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THE CONCEPT OF ENTREPRENEURSHIP IN EXTERNAL AND INTERNAL MOTIVATION TO START A BUSINESS.

Motivation -These are reasons for acting or behaving in a particular way pertaining to entrepreneurship. Various theories explain motivation as an influencing concept, it can bring out hidden talents and creativity and contributes to individual goals and society development. Some of this theories include;
Maslow’s Hierarchy of Need theory

It entails five levels of human needs i.e.

Physiological needs; This are needs for the survival and maintenance of the body such as food, clothing and shelter.
Safety Needs; Needs to be free from physical danger eg. Fear of loss of job.
Social Needs; This is mainly interaction with people for exchange of ideas.
Esteem or ego Needs; Needs concerned with self-respect, self-confidence, recognition and feeling of being unique.
Love Needs; Friendship, intimacy, trust and acceptance, receiving and giving affection and love. Affiliating and being part of a group, family, friends and work.

Hertzberg Theory
This are factors that push an employee to become an entrepreneur i.e.; poor working conditions, low salaries.

Entrepreneur Motivation-These are factors that propel individuals to be called an entrepreneur. They can be classified as Intrinsic factors and extrinsic factors.

Intrinsic factors
This is the undertaking of an activity as a hobby without external incentive. This motivation comes from within the entrepreneur and personal satisfaction is derived through self-initiated achievement. They include;
Need for achievement or service
Risk taking propensity/craving/yearning to take risks regardless of outcome
Tolerance for ambiguity
This is the ability to withstand the ever changing market trends.
Locus of control
This is the extent to which an entrepreneur believes in fate and ability to control his purpose or fate.
Self-efficacy
This is conceptualized as the belief in one’s ability to master and implement the necessary personal resources, skills and competencies to attain a certain level of achievement on a given task.
Desire for independence
This is the desire

of being your own boss and running your own business using your own ideas.
Drive
This includes ambitions, goals, persistency and energy.
Egoistic passion
Rationalizes one’s ego towards achievement of a given task thus propelling him to become an entrepreneur.
Extrinsic factors
These are the external or environmental factors that drive an individual to become an entrepreneur. They include;
Motivation from biographies or successful stories
Success stories from previous entrepreneurs may motivate individuals to become entrepreneurs with hope of success.
Influence by culture, community and family background
When there has been a family background or culture of individuals involving themselves in entrepreneurship, other members of the community might be motivated to become entrepreneurs as well.
Government policies and relevant assistance
The government may reduce the rates of business permits, reduce the number of permits required to run a business or even reduces the amount of taxes. This policies encourage more individual to be entrepreneurs.
The Government can also build business stalls, markets or offer loans to entrepreneurs.
Availability of resources
Availability of land, labor, capital, machinery and other materials required in establishing a business encourages entrepreneurship.
Market gaps and product demand
The need or demand for a product in a market may encourage an individual to get into entrepreneurship so as to satisfy market gaps.
Availability of information facilitates, research and innovation of a value added product.
Acquired information from research gives people ideas on running new business ideas and ensuring their success rates. More entrepreneurs can get into businesses when provided with this information.
Financial Assistance
Availability of cheap loans with low interests and availability of investors can encourage an individual into becoming an entrepreneurship.

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