Motivation explains about human nature and human needs. Maslow’s needs of hierarchy and Mcllands acquired needs theory are prominent theories which are relevant to entrepreneurship.
Maslow’s need of hierarchy theory: Maslow classifieds needs into a sequential priority from the lower to the higher. He classified human needs into five categories as follows.
Physiological needs: These needs are basic to human life such as food, clothing and shelter and various necessities of life. Being a human being entrepreneur also has these needs for survival, prosper. Entrepreneur is motivated to work in the enterprise to receive economic rewards to meet his/her basic needs.
Safety and security needs: As an entrepreneur to work in the enterprise he/she needs money in turn to earn more money to satisfy safety and security needs. He /she is promoted to work more in the enterprise for economic security and safety.
Social needs: Man being a social animal his needs are belongingness needs. Belonging needs, recognition and acceptance by others likewise, an entrepreneur is motivated to interact with fellow entrepreneurs and his/her employees and others.
Esteem needs: These are also known as ego or status needs. It consists of self esteem, esteem of others, achievement competence, knowledge and independence.
Entrepreneur esteem needs are satisfied by providing recognition, status, respect and independence.
Self actualization: The final and important one in the need hierarchy model is the need of self actualization. This refers to self fulfillment. Entrepreneur may achieve self actualization in being a successful entrepreneur.
For entrepreneur it is mainly social esteem and self actualization needs which motivate them to work more and more for satisfying them.
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