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Entrepreneurial Motivation, Personality and Competencies
Faculty of Mathematics and Natural Sciences Institute for Work, Social and Organizational Psychology
Dominika Dej
Institute of Work-, Organizational- and Social Psychology, TU Dresden
Prague, 25. 07. 2011
Today‘s agenda
We get to know
Entrepreneurial motivation
Entrepreneurial personality traits
Entrepreneurial competencies
Assess your entrepreneurial potential
Active group exercises
Theory + (Inter) Action
“Skills cannot be mastered by listening to lectures but by observation of positive models (…) coupled with repeated practice and feedback.”
Richard Hackman
Participation: Leaving the comfort zone
Pillars of the seminar
5
What is motivation?
Motivation is the desire to achieve a goal, combined with the energy to work towards that goal
Motivation is the basic drive for all of our actions and it directs our behavious
A motive is a need for specific experiences
Motives are stimulated by the situation
6
Achievement motivationis based on reaching success and achieving all of our aspirations in life. An individual with achievement motivation wishes to achieve objectives and advance up on the ladder of success. Here, accomplishment is important for its own sake and not for the rewards that accompany it. The capacity to derive satisfaction from the autonomous mastery of challenging tasks.
Power motivation is the drive to influence people and change situations. Power motivated people wish to create an impact on their organization and are willing to take risks to do so. Includes need for control and prestige. The capacity to derive pleasure from having mental or emotional impact on other individuals or groups of individuals.
Affiliation motivation
is a drive to relate to people on a social basis. Persons with the affiliation motivation perform better when they are complimented for their favorable attitudes and co-operation. A capacity to derive satisfaction from establishing, maintaining, and restoring positive relationships with others.
3 main motives(McClelland, 1985)
7
Explicit Motives
Achievement: „I am basically a competitive person, and I compete just for the sake of competing.“
Autonomy; „In my work assignments, I try to be my own boss“
Affiliation: „When I have a choice, I try to work in a group instead of by myself.“
Power: „I seek an active role in the leadership of a group.“ (PRF, Jackson, 1984)
Explicit motives are expressed through deliberate choices…
I am a person who…
8
Implicit motives
Implicit motives are spontaneous impulses to act…
• What is going on here? • Who are these people?• What do they think?• What do they want?• What will happen?
(Winter, 1991)
9
Implicit vs. explicit motives
(McClelland, Koestner & Weinberger, 1989; Brunstein, 2006)
Implicit Motives Explicit Motives
I am a person who…
r ≈.0
Class activity: Entrepreneurial motivation
1) What personal factors motivate people to start up a business?
2) What external situational factors motivate people to start up a business?
3) What factors (both personal and situational) discourage people to become entrepreneurs?
Opportunity vs. Necessity
Opportunity driven entrepreneurs (future orientation)…
- want to exploit a perceived business opportunity- strive for independence, self-actualisation, recognition and profit maximization- on average they rise higher than necessity driven entrepreneurs
Necessity driven entrepreneurs
(‘away from’ orientation)…
- are pushed into entrepreneurship because all other options for work are
either absent or unsatisfactory
- dissatisfaction with working conditions, contents and time
- pursue entrepreneurship to secure their own existence
Motivation
1. Estimation of start up chances in a given environment
2. Perception of own necessary skills and
abilities
3. Availability of role models
4. Fear of failure and its personal, social,
and financial consequences
Start up
Need of achievement Denotes individual’s need to strive hard to attain success. Setting demanding targets for oneself, being proactive, tendency to take
immediate responsibility for tasks, plan and control events. Want to receive feedback about their level of performance.
Locus of control One aspect of the cognitive style which represents the extension to which
individual feels in charge. Perception of control over the environment by one’s action, belief that luck
and fate do not really determine what happens.
Example of Entrepreneurial Traits
Risk taking Describes the individual cognitive style with respect to taking risks. Actively seeking risky assignments and having greater propensity to take
risks.
Personal initiative A behaviour syndrome resulting in an individual’s taking an active and self-
starting approach to work and going beyond what is formally required in a given job.
Tolerance of ambiguity Describes one’s ability to make decision with incomplete information. Making decisions in situations of high uncertainty.
Creativity Describes the tendency towards experimentation, trial and error, lateral
thinking. Thinking in non-conventional ways, challenging existing assumptions,
flexibility and adaptability in problem solving.
Need of autonomy Represents one’s strive to be independent and having control. Avoiding restrictions, rules, procedures and strong need for independence
and autonomy.
Self-efficacy Describes optimistic self-beliefs to cope with a variety of difficult demands. Belief that one's actions will produce desired results.
Ambition (Healthy ambition) Strong desire to attain high results; willingness to make something real
and to meet high standards
Egoistic passion acting in one’s own interests, passion in following own goals doesn’t mean
ignoring other people. Scarifying other things in order to follow own priorities
Energy Hardiness, endurance, stamina
Tenacity being persistent in following ideas in troubles, not giving up
Example of Entrepreneurial Motivational Traits
Dimension Description High scores on the scale Low scores on the scale
Neuroticism Represents individualdifferences in emotionalstability
Experiencing negative emotions:anxiety, hostility, depression, selfconsciousness, impulsiveness
Self-confidence,calm, relaxed
Extraversion Represents the extent towhich an individual isassertive, dominant,energetic, talkative
Tendency to be cheerful, likepeople and big groups, look forexcitement and stimulation
Tendency to spendtime alone, beingreserved, quiet,independent
Openness toExperience
Describes tendency to seeknew experiences, explorationof novel ideas
Being creative, innovative,imaginative, reflective,untraditional
Being narrow,conventional, nonanalytical
Agreeableness Represents one’sinterpersonal orientation
Trusting, forgiving, caring,altruistic, gullible, tendency tohave good interpersonalrelationships
Low need foraffiliation, unforgiving,able to make difficultdecisions
Conscientiousness
Describes individual’s degreeof organisation, persistence,hard work and motivation in pursuit the goalaccomplishment
High need of achievement,persistence and dependability (reflects the extend to which one is organised, deliberate, fulfils duties and responsibilities)
Low need ofachievement and lowdependability
Big-Five personality variables
(FFM; Costa &McCrae, 1992)
Your entrepreneurial potential
1) Personal initiative
2) Self-efficacy
3) Achievement seeking
4) Creativity
Your taskFill out the questionnairesCalculate the mean score (M)Discuss your results briefly with your neighbour
Personal initiative Entrepreneurs' from Poland, Germany & The Netherlands
(N= 325), Mean = 4.00 (SD= .54)
- No gender & country differences- No differences between industry sectors (IT vs.
Restaurants)
- Norm Population (M= 3.5)
- (Frese, Kring, Soose & Zempel, 1996)
Your vs. entrepreneurs’ entrepreneurial potential
Self-efficacy Entrepreneurs' from Poland, Germany & The Netherlands
(N= 325), Mean = 3.13 (SD= .36)
- No gender & country differences- No differences between industry sectors (IT vs. Restaurants)
- Norm Population (M= 2.9) - (Schwarzer & Jerusalem, 1989)
Psychological tests - measuring entrepreneurial potential
- Are they useful and when?- Advantages/ Disadvantages- What are their alternatives?
Personality traits vs. competencies
Personality trait A relative stable, consistent, and enduring internal characteristic
that inferred from a pattern of behaviors, attitudes, feelings, and habits in the individual.
Competence One‘s developed repertoire of skills, especially as it is applied to a
task or set of task
VandenBos, G.R. (Ed.) (2007). APA Dictionary of Psychology. Washington, DC: American Psychology Association.
Entrepreneurial Career Vision Includes formulation of long term goals and preparation of action-
implementation plan.
Decision Taking Means to analyze the different alternatives available in order to determine the best path to follow assuming full responsibility of the
outcomes.
Management Ability to gather, integrate and manage required resources in order
to start, maintain and grow within the organization.
Examples of Entrepreneurial Competencies
Conceptual thinking One’s disposition to identify the relation existing among different components in complex situations, that are not directly related, and
the ability to construct models that are easy to use.
Entrepreneurial networking Includes establishing, maintaining and taking advantages of interpersonal and institutional relationships in order to achieve
entrepreneurial goals.
Flexibility One’s disposition to change focus in order to follow better fitting
options that allow tasks to be well executed.