UNIT TWO
ENTREPRENEURIAL MOTIVATION,
CHARACTERISTICS, AND
CLASSIFICATION OF ENTREPRENEURS
Entrepreneurial motivation
• Starting a business can be an exciting and
rewarding experience.
• It can offer numerous advantages such as being
your own boss; setting your own schedule and
making a living; doing something you enjoy.
• But, becoming a successful entrepreneur
requires thorough planning, creativity and hard
work.
Entrepreneurship by : Dr. Yves Claude, PhD
Entrepreneurial motivation
• Entrepreneurial motivations include intrinsic
(internal) and extrinsic (External) triggers for
the energy, persistence, perception, attitude,
direction and intention necessary to become a
successful entrepreneur.
• Internally, a person’s orientations and inner
drives such as high need to achieve,
independence, personal satisfaction and self-
actualization determine whether one becomes
a successful entrepreneur or not.
Entrepreneurship by : Dr. Yves Claude, PhD
Entrepreneurial motivation
• Intrinsic factors refer to internal stimuli for
entrepreneurial actions.
• The extrinsic factors are the external incentives
that motivate an entrepreneurial spirit in
individuals.
• They consist of factors such as availability of
supportive government policies, existence of
enterprising cultures, support institutions such as
incubation centers and training institutions and
availability (and access) to credit.
Entrepreneurship by : Dr. Yves Claude, PhD
Motivation for starting a business
A person decides to do something either because
something in that activity lures him or he takes it
as option in lieu of something else, he is forced to
do it by people or circumstances.
Realities have shown that from a big number of
small start up businesses, only a tiny minority
grows into substantial enterprises. Many cease
after a few year’s trading.
The factors which lure a person to become
entrepreneur are called Pull factors and the factors
that compel him are called Push factors.
Entrepreneurship by : Dr. Yves Claude, PhD
Pull Factors
(a) Perception of Advantages – If a person
feels that he can earn better or overall gains in
terms of money. Status, security, future, etc as an
entrepreneur are better than working as an
employee, he tends to turn an entrepreneur.
(b) Spotting an Opportunity – Many employees
spot a business opportunity in the course of their
work and decide to exploit that opportunity
rather than pass it on to their employer. Many
employees buy unsuccessful businesses at throw
away prices from their former employers and
turn them around.
Entrepreneurship by : Dr. Yves Claude, PhD
(c) Government Policies – Govts very often
formulate policies to promote certain business
activity or backward areas which offer tax
concessions/holidays, cash subsidies, cheap land,
etc, which improve success and profit prospects.
(d) Motivation from biographies or success
stories.
(e) Influenced by Culture, Community, Family
Background, Teachers, Peers,etc…
Entrepreneurship by : Dr. Yves Claude, PhD
Push Factors
(a) Job Dissatisfaction – Many people start their own
venture because they feel dissatisfied with their existing
jobs/boss/work environment.
(b) Relocation – Repeated or especially unhappy
relocation sometimes prompts some people to
entrepreneurship.
(c) Joblessness – This is the biggest source of micro level
entrepreneurships. Many parents help their academically
poor children, who fail to find a job, to start their own
micro ventures. But success rate in such ventures is poor.
The very traits responsible for their academic failure lead
to business failure.
Entrepreneurship by : Dr. Yves Claude, PhD
(d) Lay off – Layoffs often lower the market value of
an employee to half. Thus, if a person is laid off and he
is unable to find a suitable job for him, he might think
of starting his own business.
(e) Retirement – Many retired, but physically and
mentally fit, people start their own business either to
supplement their pension/savings or just to keep
themselves gainfully occupied.
(f) Boredom – This is applicable to many ladies from
well to do families. With their army of servants to take
care of home, they find an avenue to keep the
boredom away and start ventures like boutiques,
fashion designing, etc.
Entrepreneurship by : Dr. Yves Claude, PhD
Characteristics, Traits & Behavior of
Entrepreneurs
Dahleez (2009), referring to different researchers,
lists the common characteristics, including:
Need for achievement;
Internal locus of control;
Propensity to take risk;
Tolerance of ambiguity and uncertainty;
Self-confidence;
Innovativeness;
Growth;
Desire to be independent;
Having perseverance;
Entrepreneurship by : Dr. Yves Claude, PhD
Characteristics, Traits & Behavior of
Entrepreneurs
Technical skills to run a business;
Drive and energy;
Long-term involvement;
Money as a setting;
Dealing with failure;
Use of feed-back;
Taking initiative;
Seeking personal responsibilities;
Use of resources;
Competing against self-imposed standards.
Entrepreneurship by : Dr. Yves Claude, PhD
However this is not an exhaustive list because,
as Dahleez (2009) mentions, other
characteristics are continually being added to
this ever-growing list.
In this point of view, Graves (cited by Naudé,
2008), provided 10 D’s that help define the
behavior of successful entrepreneur:
Dream: having a vision of what the future
could be like for their businesses, and having
the ability to implement their dreams;
Entrepreneurship by : Dr. Yves Claude, PhD
Decisiveness: not procrastinating and their
swiftness is a key factor in their success;
Doers: implementing what they decide as
quickly as possible;
Determination: never giving up even when
confronted by obstacles that seem
insurmountable;
Dedication: working tirelessly twelve-hour
days and seven-day work weeks striving to get
a business off the ground;
Devotion: loving what they do;
Entrepreneurship by : Dr. Yves Claude, PhD
Details: being on top of the critical details
Destiny: shaping their own destiny rather
than depending on an employer
Dollars: being rewarded in terms of money;
Distribute: distributing the ownership of
their businesses with key employees who are
critical to the success of the business.
Entrepreneurship by : Dr. Yves Claude,
PhD
10 D’s that help define the behavior of successful entrepreneur:
• Dream: having a vision of what the future could be like for their businesses,
and having the ability to implement their dreams;
• Decisiveness: not procrastinating and their swiftness is a key factor in their
success;
• Doers: implementing what they decide as quickly as possible;
• Determination: never giving up even when confronted by obstacles that seem
insurmountable;
• Dedication: working tirelessly twelve-hour days and seven-day work weeks
striving to get a business off the ground;
• Devotion: loving what they do;
• Details: being on top of the critical details
• Destiny: shaping their own destiny rather than depending on an employer
• Dollars: being rewarded in terms of money;
• Distribute: distributing the ownership of their businesses with key employees
who are critical to the success of the business.
Entrepreneurship by : Dr. Yves Claude, PhD
Note:
An entrepreneur should not be equated to a
manager.
Manager has a restricted field, destined
activities. Acts on planned agendas set by
others and assisted by others.
An Entrepreneur has a business on his own.
An entrepreneur works his/her way up all
alone, independently, without support. He
starts with an Idea.
Entrepreneurship by : Dr. Yves Claude, PhD
Classification of entrepreneurs
Category
Types
Entrepreneurs’ Type one
experience in multiple The second type (the "drop out"
ventures
entrepreneur)
The third type (Serial
entrepreneurs)”
Type of business Trading entrepreneurs
Industrial entrepreneurs
Corporate entrepreneurs
Agricultural entrepreneurs
Entrepreneurship by : Dr. Yves Claude, PhD
Size of business Small-Scale Entrepreneur
Medium-Scale
Entrepreneur
Large-Scale entrepreneur
Motivation Necessity entrepreneurs
Opportunity entrepreneurs
Pure entrepreneurs
(Spontaneous Entrepreneurs).
Induced entrepreneurs
Entrepreneurship by : Dr. Yves Claude, PhD
Use of technology Technical entrepreneurs
Non-technical
Stages of development First generation entrepreneurs
Second generation
entrepreneurs
Danhof classification Innovating entrepreneurs
Imitative entrepreneurs
Fabian entrepreneurs
Drone entrepreneurs
Social orientation Social entrepreneurs
Green entrepreneurs
Entrepreneurship by : Dr. Yves Claude, PhD
Moreover, Mohanty (2005) evokes another
type of entrepreneurs called lntrapreneurs
described as emerging group of persons who
have left big corporations and started their
own businesses either because they were not
accepted by their top bosses or because their
ideas were innovative enough to offer ample
scope of making good profits, and they
achieved great success in their new ventures.
Entrepreneurship by : Dr. Yves Claude, PhD
ASSESSMENT QUESTIONS
Entrepreneurship by : Dr. Yves Claude, PhD
One of the statements below on the topic about entrepreneurial motivation is not
true; select this statement
a. Entrepreneurial motivations include intrinsic and extrinsic triggers
for the energy, persistence, perception, attitude, direction and
intention necessary to become a successful entrepreneur.
b. The intrinsic factors are the external incentives that motivate an
entrepreneurial spirit in individuals.
c. Extrinsic factors include, for example, the availability of supportive
government policies, existence of enterprising cultures, support
institutions such as incubation centers and availability to credit.
d. In most cases, a combination of both intrinsic and extrinsic
motivation factors play a part in motivating entrepreneurial
actions.
Entrepreneurship by : Dr. Yves Claude, PhD
The following are some of the characteristics that are common to
entrepreneurs. Select a letter corresponding to a set that contains one or
more characteristics that are not good for Entrepreneurs.
a. Need for achievement; internal locus of control;
propensity to take risk; tolerance of ambiguity and
uncertainty; self-confidence ;
b. Innovativeness; desire to be independent;
perseverance; risk averse; drive and energy, long-term
involvement;
c. Dealing with failure; use of feed-back; taking initiative;
seeking personal responsibilities; use of resources;
d. Competing against self imposed standards, dream,
decisiveness, determination, dedication, devotion,
destiny.
Entrepreneurship by : Dr. Yves Claude, PhD
One of the statements below on the topic about classification
of entrepreneurs is not true; select this statement
a. Entrepreneurs can be classified according to entrepreneurs’
experience in multiple ventures; type of business; size of
business; motivation; use of technology; stages of
development; etc.
b. Danhof classified entrepreneurs in terms of innovative,
imitative, fabian , drone and serial entrepreneurs
c. Technical entrepreneurs are those with skill in production
techniques and having craftsman skill in them.
d. Social entrepreneurs drive social innovation and
transformation in various fields including education, health,
human rights, workers’ rights, environment and enterprise
development.
Entrepreneurship by : Dr. Yves Claude, PhD
End of Presentation
Have a Good Day!!!!
Entrepreneurship by : Dr. Yves Claude, PhD
THANK YOU ALL FOR YOUR KIND ATTENTION
GOD BLESS YOU
Entrepreneurship by : Dr. Yves Claude,
PhD
