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ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP

ENTREPRENEURIAL MOTIVATION & COMPETENCY

ENTREPRENEURIALENTREPRENEURIAL

MOTIVATION ANDMOTIVATION ANDCOMPETENCIESCOMPETENCIES

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 thatcause a person to take some goal

oriented action.

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Motivational theories are based on the

idea that behavior is essentiallypurposeful 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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Motivation theorists have pointed out that

at least three general categories of socialmotives as important determinant of

human behavior:The need for achievement (n Ach)

The need for Power (n Pow)The need for affiliation (n Aff)




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The need for achievement (n Ach)

Achievement motive - drive to do well, strive for

excellence and overcome challenges and obstacles inthe 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.




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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 andentrepreneurship.

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 ofleadership.

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 renewaffective relationship with others.

They potentially to be good social workers

As an entrepreneur the need for affiliation tocertain extent may contribute to the drive for

maintaining effective business networking.



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Drive to achieve

Internally driven self starter with strong desireto:

To compete with others

To excel with self imposed standard To pursue and attain challenging goal

Common characteristics associated withachievement oriented entrepreneurs



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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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Internal locus of control

They belief that success or failure isdetermined 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


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Seeking Feedback

They have strong desire to actively seek andused feed back to know how well they are

doing and how to improve their performance.

Most successful entrepreneurs are quick

learners




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Integrity and reliability

Integrity and reliability help to build andsustain trust and confidence

This helps to endure the relationship

between entrepreneurs, partners, customers,

suppliers and stakeholders.




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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 motivation

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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 workbecause the inner satisfaction they feel and

esteem they gain from others due to their

competence.



Competence motivation

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PERSONAL ENTREPRENEURIALPERSONAL ENTREPRENEURIALCOMPETENCIES (PECs)COMPETENCIES (PECs)

The term "ENTREPRENEURIALCOMPETENCIES" refers to the key

characteristics that should be possessed

by successful entrepreneurs in order to

perform entrepreneurial functions

effectively

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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

Entrepreneurial Competencies

McClelland and McBer (1985)

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3. PersistenceAn entrepreneur is able to make repeated efforts or to

take different actions to overcome an obstacle that get inthe way of reaching goals.

Examples Takes repeated or different actions to overcome an

obstacle Takes action in the face of a significant obstacle



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4. Information SeekingAn entrepreneur is able to take action on how to seek

information to help achieve business objectives or clarifybusiness 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 greatersatisfaction.

Examples

States a desire to produce or sell a top or better qualityproduct or service

Compares own work or own company's work favorably to

that of others



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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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8. Systematic PlanningAn 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 toactivities



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9. Problem SolvingSuccessful 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



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10.Self-ConfidenceA 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.AssertivenessAn 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



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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 likethat 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 StrategiesAn 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 ownobjectives Selectively limits the information given to others Uses a strategy to influence or persuade others



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END OF MODULE 2

Documents

ENT300_Module02