Motivational And Non-Motivational Influences Non Entrepreneurship

 

• Non-Motivation Influences Entrepreneurs

Non-motivational influences, often known as the dark side, are examined in relation to the stress-inducing potential of each of the concerns discussed in the following section.

1. Opportunity Cost

Entrepreneurs are more likely to engage in entrepreneurial activities when their opportunity costs are lower, according to a study conducted by Amit et al. (2009) That is, salaried workers who decide to start their own businesses do so because they have less to lose (i.e. smaller opportunity costs) by leaving their paid jobs behind.

1. Stocks of Financial Capital:

This refers to the amount of money that a person is able to amass or store in his or her possession. Evans and Leighton (1989) discovered that the risk of becoming self-employed remains consistent with age. Furthermore, older workers have a higher proclivity to become entrepreneurs since, in contrast to younger workers, they have had more time to accumulate the cash required to start a business from scratch.

1. Social Ties to Investors

Entrepreneurship researchers have long recognized the significance of social embedding in the process of starting a new business. Entrepreneurs, according to Aldrich and Zimmer (1986), are highly social actors that deliberately integrate themselves in their respective social environments. When doing their entrepreneurship research, they discovered that immigrant entrepreneurs frequently developed ethnic networks to share funds or business opportunities in order to overcome antagonism within their new countries of residence. Consequently, given these circumstances, an individual will be encouraged to pursue a career as an entrepreneur.

1. d) Career Experience

This is directly associated with a lack of satisfaction with one’s job. If a person is dissatisfied with his or her current job and has gained a significant amount of work experience while doing so, as well as possessing entrepreneurial qualities, there is a strong likelihood that the individual will pursue a career as an entrepreneur.

1. Life-Path Circumstances

Individual situations that occur along an individual’s life path that lead them to become entrepreneurs are referred to as “influential circumstances.” These include considerations such as:

1. Unsatisfactory Work Environment

The act of leaving a job in rebellion occurs when an individual is unsatisfied with his work environment or perceives the work environment to be unconducive to his work performance. If, on the other hand, the guy in issue is an entrepreneur, it is likely that he will create his own company.

2. Negative Displacement

This occurs when an individual’s life path is disrupted by unforeseen circumstances, causing the individual to make significant changes in his or her way of life. This could be due to an accident, the death of loved ones, the loss of sponsors, or other circumstances. Such events compel the individual to make significant changes in their way of life, and as a result, they may decide to embark on their own entrepreneurial venture.

• Motivation Influences Entrepreneurs

1. Need for Achievement:

According to David C. McClelland, a psychologist and the father of the Need for Achievement Theory, those who score high on the Need for Achievement Scale (N Ache) are more likely than those who score low on the Need for Achievement Scale to become entrepreneurs. This is due to the fact that such individuals are more likely to engage in activities or tasks that require a high degree of individual responsibility for outcomes, necessitate the application of individual skill and effort, involve a moderate level of risk, and provide clear feedback on performance. Overall, these persons are most productive when they can obtain results solely via their own efforts, pursue fairly tough goals, and receive feedback on the results of their efforts within a reasonably short period of time.

1. Risk taking Propensity:

In the entrepreneurship literature, risk-taking propensity has been characterized as the readiness to take moderate risks in order to achieve success (Begley, 1995). It is possible that this motivating influence on entrepreneurship is a byproduct of the need for success component, as individuals with a high need for achievement would also have moderate propensities to take risks. In part, this is due to the fact that activities involving moderate risk are both difficult and look to be reachable (Atkinson, 2004).

1. Tolerance for Ambiguity:

An ambiguous scenario is described as “a situation in which an individual is unable to properly structure or categorise a situation because there are insufficient relevant indications,” while intolerance of ambiguity is defined as “the tendency to perceive ambiguous situations as sources of risk.” As an additional point of clarification, tolerance of ambiguity is defined by Teoh and Foo (1997) as the ability to respond positively to ambiguous situations in the face of uncertainty. The fact that an entrepreneur starts a new company in an unexpected and risky environment means that an individual with an intolerance for ambiguity will be unable to pursue the role of an entrepreneur because of their intolerance for ambiguity.

1. Locus of Control

This relates to the extent to which a person believes in fate and their ability to exert control over fate. The majority of people who feel that they have an external locus of control believe that the outcome of an event is beyond of their control and that fate is primarily controlled by external factors and luck. In contrast, persons who believe they have an internal locus of control believe that their personal actions have a direct impact on the outcome of a situation. As a result, persons with an internal locus of control are motivated to become entrepreneurs because they believe that they have control over their own destiny (Rotter, 1966; UNILAG GST Module 1, 2007).

1. Self-efficacy

This is conceived as the belief in one’s ability to muster and implement the necessary personal resources, abilities, and competences in order to accomplish a specific level of achievement on a given task, regardless of the circumstances. Self-efficacy is, in essence, task-specific self-confidence in one’s abilities (Bandura, 1997; Shane et al., 2010). Consequently, an individual who has high self-efficacy will respond to negative criticism in a more positive manner and use that input to enhance his or her performance, increasing the likelihood that he or she will succeed as a business owner.