ENTREPRENEURIAL MOTIVATION AND COMPETENCIES

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ENTREPRENEURIAL MOTIVATION AND COMPETENCIES
Assoc. Prof. Dr Nawawi B Mohd Jan
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• Learning Outcomes
• By the end of the session, students should be
  able to
• Explain and demonstrate the key entrepreneurial
  motivation and
• Explain and demonstrate competencies of
  successful entrepreneurs

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Entrepreneurial Motivation

• What make people responsive to opportunity?
• What drive them to entrepreneurship?
• Answering these question entail the examination
  of entrepreneurial motivation
• Motivation is defined as a drive that cause a
  person to take some goal oriented action.
• Motivational theories are based on the idea that
  behavior is essentially purposeful and directed
  towards the attainment of certain goal.
• Thus entrepreneurial motivation is viewed as the
  willingness of an entrepreneur to sustain his or
  her entrepreneurial behavior.

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• The need for achievement (n Ach)
• Achievement motive - drive to do well, strive for
  excellence and overcome challenges and obstacles
  in the pursuit of goal.
• The need for Power (n Pow)
• Power motive - drive to control, influence and to
  have impact on others and change the situations.
• The need for affiliation (n Aff)
• Affiliation motive - drive to establish, maintain
  or renew affective relationship with others.
• All three motives may exist together in a person
• But one usually more dominant than the other
  motives for most of the individuals actions.

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High need for achievement (high n Ach)

• High need for achievement (high n Ach) has been
  identified as the critical motive that influence
  for most of venture creation and
  entrepreneurship.
• Individual with high need for achievement found
  in most good business founder.
• Need for achievement also known as urge to
  improve.

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High need for power (high n Pow)

• Individual with High need for power (high n Pow)
  normally seek position of leadership.
• They potentially to be good managers, executive
  or supervisors.

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High need for affiliation (n Aff)

• High need for affiliation (n Aff) has mostly been
  associated with individual whose desire in life
  is to establish, maintain or renew affective
  relationship with others.
• They potentially to be good social workers
• As an entrepreneur the need for affiliation to
  certain extent may contribute to the drive for
  maintaining effective business networking.

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Common characteristics associated with
achievement oriented entrepreneurs

• 1. Drive to achieve
• Internally driven self starter with strong desire
  to
• To compete with others
• To excel with self imposed standard
• To pursue and attain challenging goal
• 2. Calculated risk taking
• High achiever tend to take moderated or
  calculated risk
• Examining the situation and determine how to
  increase the chance of winning a business
  situation
• They make their effort to get the odds in their
  favor
• They do not take unnecessary risks

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• 3. Internal locus of control
• They belief that success or failure is determined
  by their own effort.
• They belief in themselves
• They do not belief that success or failure of
  their ventures were determined by fate or luck
• This behavior is consistent with self confidence
  and desire to take personal responsibility
• 4. Tolerance for failure
• High achievers take failure as a learning
  experience.
• Do not easily become disappointed, distress or
  discouraged by any setback or difficulties faced
  in the mist of business competition.
• Many successful entrepreneurs belief that they
  learn more from their earlier failure than from
  their earlier success.

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• 5. Seeking Feedback
• They have strong desire to actively seek and used
  feed back to know how well they are doing and how
  to improve their performance.
• Most successful entrepreneurs are quick learners
• 6. Integrity and reliability
• Integrity and reliability help to build and
  sustain trust and confidence
• This helps to endure the relationship between
  entrepreneurs, partners, customers, suppliers and
  stakeholders.

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Competence motivation

• Besides the three social motives, a successful
  entrepreneur should also have the competence
  motivation
• Competence motivation Is a drive to do high
  quality work.
• Competence motivated entrepreneur
• seek mastery in job or tasks that they are
  undertaking,
• develop problem solving skill and
• strive to be innovative
• In general they tend to perform good work because
  the inner satisfaction they feel and esteem they
  gain from others due to their competence.

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PERSONAL ENTREPRENEURIAL COMPETENCIES
(PECs)   The term "ENTREPRENEURIAL COMPETENCIES"
refers to the key characteristics that should be
possessed by successful entrepreneurs in order to
perform entrepreneurial functions effectively
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Entrepreneurial Competencies  McClelland and
McBer (1985)

• 1. InitiativeThe entrepreneur should be able to
  take actions that go beyond his job requirements
  and to act faster. He is always ahead of others
  and able to become a leader in the field of
  business.
•  
• Examples
• Does things before being asked or compelled by
  the situation.
• Acts to extend the business into new areas,
  products or services
• 2. Sees and acts on opportunities
• An entrepreneur always looks for and takes
  action on
• opportunities.
•  
• Examples
• Sees and acts on new business opportunities
• Seizes unusual opportunities to obtain
  financing,
• equipment, land, work space or assistance

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• 3. Persistence
• An entrepreneur is able to make repeated efforts
  or to take different actions to overcome an
  obstacle that get in the way of reaching goals.
• Examples
• Takes repeated or different actions to overcome
  an obstacle
• Takes action in the face of a significant
  obstacle
• 4. Information Seeking
• An entrepreneur is able to take action on how to
  seek information to help achieve business
  objectives or clarify business problems.
•  Examples
• Does personal research on how to provide a
  product or service
• Consults experts or experienced persons to get
  relevant information
• Seeks information or asks questions to clarify a
  client's or a supplier's need
• Personally undertakes market research, analysis
  or investigation
• Uses contacts or information networks to obtain
  useful information

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• 5. Concern for High Quality of Work
•   An entrepreneur acts to do things that meet
  certain standards of excellence which gives him
  greater satisfaction.
•  
• Examples
• States a desire to produce or sell a top or
  better quality product or service
• Compares own work or own company's work favorably
  to that of others
• 6. Commitment to Work Contract
•   An entrepreneur places the highest priority on
  getting a job completed.
•  
• Examples
• Makes personal sacrifice or expends extraordinary
  effort to complete a job
• Accepts full responsibility for problems in
  completing a job for customers
• Pitches in with workers or works in their place
  to get the job done
• Expresses a concern for satisfying the customer

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• 7. Efficiency Orientation
• A successful entrepreneur always finds ways to
  do things faster or with fewer resources or at a
  lower cost.
•  
• Examples
• Looks for or finds ways to do things faster or at
  less cost
• Uses information or business tools to improve
  efficiency
• Expresses concern about costs vs. benefits of
  some improvement, change, or course of action
• 8. Systematic Planning
• An entrepreneur develops and uses logical,
  step-by-step plans to reach goals.
•  
• Examples
• Plans by breaking a large task down into
  sub-tasks
• Develops plans that anticipate obstacles
• Evaluate alternatives
• Takes a logical and systematic approach to
  activities

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• 9. Problem Solving
• Successful entrepreneur identifies new and
  potentially unique ideas to achieve his goals.
•  
• Example
• Switches to an alternative strategy to reach a
  goal
• Generates new ideas or innovative solutions
• 10.Self-Confidence
•   A successful entrepreneur has a strong belief
  in self and own abilities.
•  
• Examples
• Expresses confidence in own ability to complete a
  task or meet a challenge
• Sticks with own judgment in the face of
  opposition or early lack of success

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• 11.Assertiveness
• An entrepreneur confronts problems and issues
  with others directly.
•  
• Examples
• Confronts problems with others directly
• Tells others what they have to do
• Reprimands or disciplines those failing to
  perform as expected
• 12.Persuasion
•   An entrepreneur can successfully persuade or
  influence others for mobilizing resources,
  obtaining inputs, organizing productions and
  selling his products or services.
•  
• Examples
• Convinces someone to buy a product or service
• Convinces someone to provide financing
• Convinces someone to do something else that he
  would like that person to do
• Asserts own competence, reliability, or other
  personal or company qualities
• Asserts strong confidence in own company's
  products or services

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• 13.Use of Influence Strategies
• An entrepreneur is able to make use of
  influential people to reach his business goals.
•  
• Examples
• Acts to develop business contracts
• Uses influential people as agents to accomplish
  own objectives
• Selectively limits the information given to
  others
• Uses a strategy to influence or persuade others