Theories of Entrepreneurship & Motivation 2

8/2/2019 Theories of Entrepreneurship & Motivation 2

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Theories of Entrepreneurship


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Schumpeter (1934)s view

1. The development of new product2. Discovery of new production Method

3. Discovery and exploitation of newmarket

4. Discovery & Exploitation of new

sources of supply for raw materials5. Development & implementation of a

new way of organisation


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Focuses on three relationships :

1. Effect of innovation upon profits

2. Effect of innovation on the activities of

imitators

3. Effect of behaviour of profits on theinnovating entrepreneur


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Conclusion :

Keep running in order to stand still


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Peter Druckers Views (1964)

An entrepreneur is one who alwayssearches for change, responds to it

and exploits it as an opportunity.Key Points :

1. Innovation is work

2. Innovation must be built on strengths.

3. Innovation should be market driven


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Walkers Theory

Performs functions of manager

Profits are wages received by the

employerDifferent from capitalists & labourers

Captains of the Industry


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Entrepreneur Motivation


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Theories - EntrepreneurMotivation

Maslows Hierarchy theory

Herzbergs two factor theory

McClellands manifest needs theory


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Manifest Needs Theory

1. Need for achievement (N-Ach)

2. Need for power (N-Pow)

3. Need for affiliation (N-Aff)


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Need for achievement

Concerns issues of excellence,

competition,challenging goals and

overcoming difficulties.


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Need for power

Who is the boss ?

Concern for influencing people


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Need for affiliation

Thinks about interpersonal relationships

A tendency of the people to conform to

the wishes and norms of those whomthey value

Entrepreneurs are believed to be low onaffiliation, as they are and expected tobe, innovative, trendsetters andtradition breakers.


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Need for autonomy(N-Aut)

Preference of YOB over JOB


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Thinking, Deciding andActing Independently

N-Aut

Warmth, compassion fellow-

being

N-Aff

Leadership, control,direction

N-Pow

Competitiveness, excellence N-Ach


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The Kakinada Experiment I

Conducted by McClelland in America,Mexico and Kakinada

Under this experiment, young adultswere selected and put through a threemonth training programme

The training aimed at inducingachievement motivation


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The Kakinada Experiment II

The course contents were

Trainees were asked to control their thinking and talk

to themselves, positivelyThey imagined themselves in need of challenges and

success for which they had to set planned andachievable goals

They strived to get concrete and frequent feedback

They tried to imitate their role models/those whoperformed well


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The Kakinada Experiment III

Conclusions of the experiment:

Traditional beliefs do not inhibit an entrepreneur

Suitable training can provide necessary motivation toan entrepreneur

The achievement motivation had a positive impact onthe performance of the participants

It was the Kakinada experiment that made peoplerealise the importance of EDP (EntrepreneurialDevelopment Programme) to induce motivation andcompetence in young, prospective entrepreneurs


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Entrepreneurial Performance

1. Physical

2. Financial

3. Market Based

4. Stakeholders based


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Entrepreneurial Rewards

1. Intrinsic Rewards

2. Extrinsic Rewards


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Thank you !

Khob Khun Kha !

Theories of Entrepreneurship & Motivation 2

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