Motivation in Entrepreneurship

There are numerous ways of becoming part of an enterprise. Some start their own business ventures by taking conventional paths, whereas others are content with their 9 to 5 jobs. They get satisfaction from the fact that they are playing a role in the progress of a business venture. Still others are not so conventional in their approach. These folks come up with original ideas to set up their own business ventures, and are known as entrepreneurs - the flag-bearers of change in the world.

Understanding entrepreneurship

The main purpose of any business venture is to make it profitable. Entrepreneurship also focuses on growth and profits, but it is not limited to this. The comprehensive definition of entrepreneurship introduces us to a number of important terms.

Entrepreneurship came into existence to break the conventional moulds of running business ventures. It is about taking risks and innovating products or services that change industries for the better. Entrepreneurs are willing to take risks in turning their dreams into reality.

Key attributes of an entrepreneur

An entrepreneur is someone who believes in entrepreneurship and is willing to implement entrepreneurial ideas to achieve their goals. It is important to understand how an entrepreneur works and seizes opportunities. Some of the key attributes of an entrepreneur include:

• Risk-taking – An entrepreneur must be a risk-taker. This is one of the foundations on which entrepreneurship functions. In order to present new and innovative solutions to real-world problems or gaps in markets, an entrepreneur needs to have out-of-the-box thinking. Challenging the established market system and presenting a unique way of solving problems requires a risk-taking mindset.

• Passion – This attribute is key for every business owner, and even more so for entrepreneurs. They enter the industry to change obsolete ways and implement unique business ideas. Passion helps them achieve their targets and keeps them motivated during difficult phases.

• Motivation – On the journey from having a unique business idea to making it profitable and sustainable, an entrepreneur may experience moments of frustration. Motivation can keep entrepreneurs on a continued path to success during such moments.

• Hard work – To achieve their objectives, entrepreneurs must be hardworking. They have selected a non-conventional path requiring a lot of hard work and perseverance.

• Innovation – This attribute is a must-have for every entrepreneur and requires out-of-the-box thinking when approaching solutions to problems.

• Organisation – Entrepreneurs have to tackle a wide variety of issues on a daily basis. It is therefore important for them to organize their working schedules. Having this attribute puts them in a better position to lead the venture.

Motivation and its importance in entrepreneurship

With a unique business idea comes many challenges at all stages of its implementation. For entrepreneurs, self-belief is crucial to motivation. It is a tough task to start something new, and it becomes even tougher when people are doubtful about the practicality of the venture.

Entrepreneurs must be self-motivated to convince investors of the practicality of their ideas. The desire and motivation to keep focusing on the tasks and to work hard are the keys to becoming successful entrepreneurs.

Types of entrepreneurial motivation

There are several types of entrepreneurial motivation. These may vary depending on the type of entrepreneur and their motive. These may also be classified as financial and non-financial motivations. The most common motivations are:

• Monetary gains: every business venture, whether it is entrepreneurial or conventional, has the ultimate motive of generating profit. Entrepreneurs also want maximum gains in terms of money, but they get more satisfaction in the process. Firstly, they are working for themselves, which is quite a big motivation in itself. Secondly, they believe that while making money, they are also offering innovative business solutions to the industry.

• More freedom: entrepreneurial systems grant more freedom than conventional ones. Entrepreneurs want to have a working structure that ensures more flexibility. They have more freedom to make choices that they think will benefit the venture in the long run.

• More authority: entrepreneurs have more authority, which also makes them self-accountable. Since they have these business ideas, they want to be involved in every aspect of it. From product development to ensuring a sustainable customer base, entrepreneurs have the final say in each of these decisions.

• Creative control is a motivation that keeps entrepreneurs going and helps them achieve their goals. Every creative decision must be aligned with the vision of entrepreneurs. For instance, a product is launched to target a younger customer base. To attract a particular base, every creative decision must be taken to achieve this goal, from product design to marketing strategies.

Entrepreneurial objectives

• Own boss: Entrepreneurs are their own bosses, which is a major reason they choose to become entrepreneurs. They want to lead and take important decisions in the venture.
• Flexible work schedules are also a major factor here. Entrepreneurship is all about empowering employees and self-accountability.
• Following interests: Entrepreneurial ventures are set up because entrepreneurs want to follow their interests. When they come up with innovative business solutions, it is because they believe in and want to follow through on them.
• Money: Traditional job roles do not offer the chance to earn much more money. Entrepreneurs want to present business solutions that would also allow them to increase earning power.
• Gap identification in the market: One of the core objectives of entrepreneurial ventures is to identify gaps in the market. If there is a need for a unique business solution, entrepreneurs capitalise on it.

Theories of motivation in entrepreneurship

There are a number of theories associated with motivation in entrepreneurship.

• Joseph Schumpeter's innovation theory - Schumpeter believed that entrepreneurship could change market dynamics by destroying existing markets, and that it could create new markets by improving existing products or creating new ones. He supported innovation as a key factor in economic development.

  Innovation is the market introduction of a technical or organizational novelty, not just its invention." (Joseph Schumpeter)

  Therefore, an entrepreneur should be motivated to create new or better products to gain an advantage in the market.

• David McClelland's need for achievement theory - According to McClelland, entrepreneurs have two traits. They produce things in a better way and they can take decisions amidst uncertainty. He introduced the idea of achievement orientation, which means that a person with strong achievement orientation is a good fit for entrepreneurship. Due to intrinsic motivation, his orientation helps him achieve more without worrying about money.

• Frank H. Knight’s theory of profit - Knight proposed a theory of profit, which states that if entrepreneurs are to bear the risk by taking decisions among uncertainty, they deserve the rewards/profits made in return.

Entrepreneurs are intrinsically motivated people who believe in their ideas and are passionate about implementing them. They act as a catalyst for change in existing markets by producing better or new products/services. Motivation may differ among entrepreneurs, but they all believe in providing innovative business solutions. They challenge the status quo by destroying existing markets through their innovative ideas.