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Maslows Need Hierarchy Theory
and its implications
According to Abraham maslows, an American Psychologist a
persons behavior is shaped by many needs. These needs are
arranged in order of priority. An individual first tries to fulfill hislower level needs. once they are satisfied, he moves towards the
satisfaction of higher order needs. The hierarchy lower to higher
order of priority.
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A. Physiological needs
This refer to the needs for food, water, oxygen,rest, sleep etc. They exert tremendous influence on
human behavior. Enterprise also being a man needs tomeet his physiological needs for survival. Thesephysiological drives are directly concerned with thebiological maintainence of the organism. Thesociophysical environment of our country provides forthe satisfaction of primary needs for most persons.Hence he is motivated to work in the enterprise to haveeconomic rewards to meet the basic needs . Like anyother individual, an entrepreneur also sufficient
resource to meet the physiological needs of himself andhis family dependents, so he undertake business ventureon small scale and seeks economic rewards from hisenterprise in form of profit.
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B. safety and security Needs
These needs find expression in such desire as
economic security and protection from physical dangers likesickness etc. The primary motive here is to ensure a reasonable
degree of country, order, structure and predictability in ones
environment. Meeting these needs require more money and
hence entrepreneur is promoted to work more in his enterprise.Like physiological needs, these become in active, once they are
satisfied. Such factor create tension in the mind of entrepreneur.
In case of serious law and order problem, an entrepreneur either
closes his enterprise for the day and even considers shifting it to
a safer place. Also he might enter into agreement or contractwith purchase of raw material or other such critical issues to face
the uncertainty of futures.
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C.Social Needs
Man is a social animal. These needs, refer tobelongingness. An individual motivated on this level
longs for affectionate relationship with other namely for aplace in his family and reference groups. These means theneed to be accepted by other , need to be belong, need toreceive attention from others. an entrepreneur satisfiesthese needs by interacting with other entrepreneurs, withemployees, etc
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D. Ego or Esteem or status needs
These needs refer to self esteem and self respect.
The former include desire for perfection, confidence,
personal strength adequacy, achievement, independenceand freedom. The later include prestige, recognition,acceptance, attention, status, reputation and appreciation.In case of entrepreneurs, the ownership and self control
over enterprise satisfies their esteem needs by providingthem status, respect, reputation and independence. Desireto be an independent is another ego need. Anentrepreneur established an enterprise to satisfy most of
his ego needs. Ownership and control of successfulenterprise provides him status, personal reputation andsense of independence and achievement.
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E. Self Actualization Need
This refers to self fulfillment. Maslow characterised self
actualisation as the desire to become everything that one is capableof becoming. The person at this level tries to exploit his talents,
capacities and potentials to the maximum. This needs include the
desire for expressing and proving oneself. This are strongest
motivating force an entrepreneur. The establishment and successful
operation of an enterprise providers him opportunities for selfexpression, achievement and growth. Becomes pioneers person for
specific industry. This theory is based on following principles
a) Principle of deficiency
The derived needs motivates behavior or to undertake specificactivity in specific way.
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b) Principe of Progression
Higher needs become activated only when the lower order needs are
satisfied. In this theory needs are arranged in a lowest to the
highest hierarchy. The 2nd need does not dominate unless the first is
reasonably satisfied, and the 3rd need does not dominate untill 1st
two have been reasonable satisfied. This process goes on till the last
need. Because human needs are unlimited. For entrepreneur it is
mainly social, esteem and self actualizing needs which motivate
them to work more and more for satisfying them.
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