Title: ENTREPRENEURIAL MOTIVATION
Course: INTRODUCTION TO ENTREPRENEURSHIP > Section: LESSON 2: ENTREPRENEURIAL MOTIVATION

In this lesson, we explore the internal and external factors that motivate people to become entrepreneurs.  Entrepreneurial Motivations can be defined as the cognitive, biological, and external factors that prompt certain actions in individuals and societies to act in creative and innovation manner. Internally, a person’s orientations determine whether he   becomes a successful entrepreneur or not. The external environment such as access to capital and government policies also encourages or inhibits an entrepreneurial spirit. The purpose of this lesson is to encourage you to develop positive attitudes towards entrepreneurship as a career.

2.1 Introduction

In this lesson, we explore the internal and external factors that motivate people to become entrepreneurs.  Entrepreneurial Motivations can be defined as the cognitive, biological, and external factors that prompt certain actions in individuals and societies to act in creative and innovation manner. Internally, a person’s orientations determine whether he   becomes a successful entrepreneur or not. The external environment such as access to capital and government policies also encourages or inhibits an entrepreneurial spirit. The purpose of this lesson is to encourage you to develop positive attitudes towards entrepreneurship as a career.

2.2 Lesson Learning Outcomes

By the end of this lesson, you will be able to:

2.1.1        Explain the intrinsic  and extrinsic factors that motivate entrepreneurship

2.1.2        Compare and contrast the advantages and disadvantages of self-employment.

2.2.1 Intrinsic and extrinsic factors that motivate entrepreneurship

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. 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. These policies facilities a inspire people to pursue entrepreneurial opportunities. In most cases, a combination of both intrinsic and extrinsic motivation factors play a part in motivating entrepreneurial actions.

E-tivity 2.2.1 Intrinsic and Extrinsic factors that motivate entrepreneurship

Numbering, pacing and sequencing | 2.2.1
Title | Entrepreneurial Motivation
Purpose | To motivate you to embrace entrepreneurship  as a  career and as a means of curbing unemployment across East Africa
Brief summary of overall task
a)    Read the linked articles and analyze the internal and external factors that motivate people towards entrepreneurial careers.

1. http://shodhganga.inflibnet.ac.in/bitstream/10603/76876/8/08_chapter%203.pdf
2. https://digitalcommons.ilr.cornell.edu/cgi/viewcontent.cgi?article=1840&context=articles (Shane, S., Locke, E. A., & Collins, C. J. (2012)

b)       Read the linked book chapter one and complete the table on entrepreneurial readiness and motivation pages 35-37

 https://link.springer.com/book/10.1007/b138370
Listen to the linked video Entrepreneurial motivation video https://ocw.mit.edu/courses/sloan-school-of-management/15-390-new-enterprises-spring-2013/video-tutorials/lecture-8/ and explain why you should focus on entrepreneurship

c)        Listen to the following video clip: https://www.youtube.com/watch?v=Gs-xNwGzMvA. and explain the key purpose of entrepreneurship
Spark |
Individual task | a)      In about 300 words, analyze the internal and external factors that motivate entrepreneurial behavior and indicate which of the two has more influence. b)      After completing the table on entrepreneurial readiness and motivation, explain in two sentences what you need to work hard on in order to improve your entrepreneurial readiness and motivation. c)      Your answers in this section should be posted to the discussion forum 2.2.1
Interaction begins | a)    Post two most important internal and two external factors of motivation. b)   Post the two things you need to work on in order improve your entrepreneurial motivation. c)    Provide positive descriptive comments on your team learners’ answers with a view of enhancing further thinking. Do this on the discussion forum 2.2.1
E-moderator interventions | a)    Ensure that learners are focused on the contents and context of discussion. b)   Stimulate further learning and generation of new ideas. c)    Provide feedback on the learning progress.
Schedule and time | This activity should take two hours
Next | Compare and contrast the advantages and disadvantages of self-employment

2.2.2 Advantages and disadvantages of self-employment

Entrepreneurship leads to self-employment. Self-employment has some potential advantages and disadvantages. Some of the advantages are: there is potential for unlimited income, a person can take initiatives can control work environment and there is some degree of independence. On the other hand, self-employment has its disadvantages such as long irregular hours of work, broad responsibilities, “firefighting”, income not stable or guaranteed and uncertain future.

E-tivities 2.2.2 Self-employment Vs wage employment

Numbering, pacing and sequencing | 2.2.2
Title | Compare and contrast the advantages and disadvantages of self-employment
Purpose | To motivate you to embrace entrepreneurship  as a  career and as a means of curbing unemployment across East Africa
Brief summary of overall task | Watch the following video and describe the importance of self-employment Vs wage employment https://www.youtube.com/watch?v=kUrQc9big4I
Spark | https://www.youtube.com/watch?v=q4_e_9qZIDE Watch this video and explain what motivates people towards   starting their own businesses Entrepreneurial motivation video https://ocw.mit.edu/courses/sloan-school-of-management/15-390-new-enterprises-spring-2013/video-tutorials/lecture-8/
Individual task | After watching video and reading your colleagues’ comments, use a table with two columns to compare and contrast the benefits of self-employment against wage employment  and save the answers on your portfolio.
Interaction begins | a)    Think of  two comparative points of wage and self- employment. b)   Read your colleagues’ comments and provide positive descriptive comments on their answers with a view of enhancing further thinking. Do this on the discussion forum 2.2.2
E-moderator interventions | a)      Ensure that learners are focused on the contents and context of discussion. b)      Stimulate further learning and generation of new ideas. c)      Provide feedback on the learning progress.
Schedule and time | This activity  should take two  hours
Next | Types and Characteristics of Entrepreneurs

Cluster

2.3 Assessment Questions

QUESTION 1

What is the primary motive of starting of starting a business?

- To be independent
- To serve others
- To make more money
- To create jobs

QUESTION 2

Key factors that aid entrepreneur’s commitment a business is

- Intrinsic and extrinsic
- Interests and sales
- Personal satisfaction and actualization
- All of the above

QUESTION 3

An advantage of entrepreneurship is

- Can make all decisions by themselves
- Must create new ideas
- Can supervise other people
- Can work in the field that interest them

QUESTION 4

A disadvantage of entrepreneurship is

- One must work very hard
- Compliance with Government regulations
- Risk of business failure
- None of the above

End of cluster

End of the quiz

References

2.2      References

1            Chapter-1. (n.d.). Retrieved from http://shodhganga.inflibnet.ac.in/bitstream/10603/705/9/09_chapter 1.pdf

2            Entrepreneurial Motivation - DigitalCommons@ILR | Cornell ... (n.d.). Retrieved from https://digitalcommons.ilr.cornell.edu/cgi/viewcontent.cgi?article=1840&context=articles

3            Søren Hougaard. (n.d.). Retrieved from https://link.springer.com/book/10.1007/b138370

4            W., A., H., M., & M. (n.d.). Lecture 8: Our Passion for Entrepreneurship at MIT. Retrieved from https://ocw.mit.edu/courses/sloan-school-of-management/15-390-new-enterprises-spring-2013/video-tutorials/lecture-8/

5            Hoover, G. (2011, June 14). Gary Hoover What Is Entrepreneurship. Retrieved from https://www.youtube.com/watch?v=Gs-xNwGzMvA.

6            E. (2017, September 21). ‍ Where do jobs come from? | Employment vs self-employment. Retrieved from https://www.youtube.com/watch?v=kUrQc9big4I

7            Forum, Y. E. (2017, May 10). What is an Entrepreneur | Real Life of an Entrepreneur. Retrieved from https://www.youtube.com/watch?v=q4_e_9qZIDE

2.3      Further Reading

1            Affes, H. (2016). The Impact of the Extrinsic Innovative Entrepreneurs’ Motivation and the Knowledge-Based Competitive Conditions on Technological Innovation. International Journal of Economics & Management Sciences,05(03). doi:10.4172/2162-6359.1000343

2            Carsrud, A. L. & Brannback, M. (2009). Understanding the Entrepreneurial Mind: Opening the Black Box. Berlin, Germany: Springer Publishers. Retrieved from https://books.google.co.ke/books?id=4j-9SNJwLSsC&dq=Intrinsic+factors+that+motivate+entrepreneurship&source=gbs_navlinks_s.

3            Khan, J. H., Biswas, B. D., & Ahmed, N. (2009). Extrinsic and Intrinsic Determinants of Entrepreneurial Growth of Bangladesh. An empirical examination. Global Business and Economics Review, 4(2). Retrieved from http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.498.1468&rep=rep1&type=pdf

4            Stefanovic, I., Prokic, S., & Rankovic, L. (2010). Motivational and Success Factors of Entrepreneurship: The evidence from a developing country. Original Scientific Paper, 28(2): 251-269.