Academic journal article Indian Journal of Industrial Relations

Entrepreneurial Motives of Indian Entrepreneurs: An Empirical Study

Academic journal article Indian Journal of Industrial Relations

Entrepreneurial Motives of Indian Entrepreneurs: An Empirical Study

Article excerpt

Introduction

Entrepreneurial motivation is one of the key elements in entrepreneurial performance. Stuart & Abetti (1990) found a positive correlation between objectives pursued by entrepreneurs and the performance of their businesses. Kurtako et al. (1997) and Robichaud et al. (2001) observed entrepreneurial motivation as goal statement that entrepreneurs seek to achieve; they grouped various items measuring entrepreneurial motivation into four motivational factors, viz., Extrinsic Rewards, Intrinsic Rewards, Independence/Autonomy, and Family Security. Dubini and Aziendale (1988), on the basis of the findings of their study of 163 Italy based entrepreneurs, grouped factors of entrepreneurial motivation into seven sets, viz., (i) Achievement (related to sense of individualism, accomplishment and development); (ii) Philanthropy (related to welfare of the individual, family or community); (iii) Status (related to recognition, prestige, respect); (iv) Materialism (related to economic consideration); (v) Escape (related to escape, an undesirable situation); (vi) Freedom (related to flexibility of work, time, collaborations); and (vii) Role Model (related to continuing family tradition). Rodrigo (1986), in his study of Cali Columbia based 64 entrepreneurs, found out the following motivating factors for entrepreneurship: independence, desire to make a reality of their ideas, confidence in their capacities, desire to develop their initiative and creativity, money, desire to be their own boss, and desire to define their life path before getting old. Vidyu Lata (1990) suggests that security, prestige, power and social service are equally potential motives. Thus, various motives have been identified as factors of entrepreneurial motivation.

Earlier Research

In a number of research studies, attempts have been made to rank entrepreneurial motives as perceived by the entrepreneurs themselves. McClelland (1961) identified 'need for achievement' as the single most important factor of entrepreneurial motivation. Hornaday and Bunker (1970) also supported the McClelland's view considering achievement motive as an explanatory variable for entrepreneurial behavior. Collins and Moore (1970) recognized independence as an important entrepreneurial motive. Further, Hornaday and Aboud (1971) reported that the need for achievement, support, independence, and leadership are the most significant entrepreneurial characteristics. Alange (1988), in his Swedish study (which was a part of an international cross-cultural study of 15 countries), found that Swedish entrepreneurs were motivated by need for independence. Bhattacharya (1979) found that power, self-actualization and achievement motivation are significantly higher in entrepreneurs compared to economic and affiliation motivation. Respect for work was recognized as an important motivating factor of entrepreneurship by Akhouri and Mishra (1990). Vijaya and Kamalanabhan (1998) also found that economic factors and the need for independence emerge as major reasons for the respondents wanting to go into business. In Mitchell's (2004) study of motive profiles of 101 South African entrepreneurs, both men and women entrepreneurs were found to be primarily motivated by the need for independence, need for material incentives and the need for achievement; the need to contribute to the community was not found to be an important reason. Murugesan & Sankaran (2006), in their study of 153 entrepreneurs of Tamil Nadu (India), found that the majority of entrepreneurs were motivated mainly by the urge to attain economic independence such as the desire to earn money and to be self-employed. Chowdhary & Monika Prakash (2007), in their exploratory study of entrepreneurial motives of 179 young Indian entrepreneurs, found that autonomy and freedom dominated the motives for entrepreneurship. The results of the recent study of 243 Indian North Eastern (Assamese) entrepreneurs on entrepreneurial motivation conducted by Khanka (2009) showed that entrepreneurs were primarily motivated by the need for economic achievement, personal growth, autonomy and recognition; the desire to contribute to the community was not found to be an important reason to become an entrepreneur. …

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