Entrepreneurs occupy a central position in a market economy. For it's the entrepreneurs who serve as the spark plug in the economy's engine, activating and stimulating all economic activity. The economic success of nations worldwide is the result of encouraging and rewarding the entrepreneurial instinct (Bygrave & Hofer, 1991).
A society is prosperous only to the degree to which it rewards and encourages entrepreneurial activity because it is the entrepreneurs and their activities that are the critical determinant of the level of success, prosperity, growth and opportunity in any economy. The most dynamic societies in the world are the ones that have the most entrepreneurs, plus the economic and legal structure to encourage and motivate entrepreneurs to greater activities (Campbell, 1992).
The role of the entrepreneur can be seen from the perspective of two important theories: economic theory and empirical theory (Rapaso, Do Paco & Ferreira, 2008). According to (Davidsson & Wiklund, 1999) the roles of entrepreneurs according to the economics theory are following:
· the person who undertakes risk associated with uncertainty
· the person who supplies the financial capital
· innovator
· decision maker
· industrial leader
· manager
· organizer of economic resources
· business owner
· locator of resources
According to (McClelland, 1961) an entrepreneur has following roles:
· original and innovative
· takes individual responsibility
· plans on long term basis
2.1.4 Entrepreneurial motivation
There are numbers of motivational variables which develop the intention of students to create his/her venture. These variables can be categorized into demographic variables and psychographic variables. The literature on entrepreneurial motivation is scare and fragmented. Entrepreneurial motivations refer to the desire or tendency to organize, manipulate and master organizations, human beings or ideas as quickly and independently as possible (Johnson, 2005). Individuals with high-entrepreneurial motivation are to be more likely to become entrepreneurs (Shane et al., 2003).
Beliefs which are related to perceived high-entrepreneurial motivation on a country-wide level may promote individuals’ attitude towards entrepreneurship. Beliefs related to the role of formal and informal institutional environments may influence individuals’ attitudes towards entrepreneurship. If a person believes that the outcome of his/her entrepreneurship activity in a given environment will be desirable, they are likely to have a positive attitude towards entrepreneurship (Lent et al, 2000). If a person perceives doing business in a country as being difficult, unattractive, risky, or bringing low benefits, his/her attitude towards entrepreneurship might be negative (Bullvag et al, 2010).
(Benzing, Chu & Kara, 2005) in their study of entrepreneurs in Turkey stated that, among other things, presented a comparative results of numerous research on entrepreneurs’ motivating factors in different countries. In Romania, income and job security needs were stronger motivators than self-satisfaction and personal needs. On the other hand, entrepreneurs in India were most strongly motivated by the desire for autonomy and then to increase their income.
Ugandan entrepreneurs are motivated by “making money” (Bewayo, 1995). A study of entrepreneurs in Kenya and Ghana found that the strongest two motivators for the entrepreneurship were to increase income and to provide employment to them (Chu, Benzing, & McGee, 2007). The research found that microenterprise owners in West Africa were motivated by a desire to satisfy psychological needs – food and shelter (Roy and Wheeler, 2006).
Motivations are not the only things that influence these transitions. Cognitive factors, knowledge, skills, and abilities (KSAs), certainly matter. Allocation is the result of the combination or integration motivation and cognition. First, the entrepreneurs need to have some knowledge, especially of the industry and of any relevant technology that is critical to success. The necessary skills will depend on the circumstances, but they may include such factors as selling and bargaining, leadership, planning, decision making, problem solving, team building, communication, and conflict management. Third, the entrepreneur needs to have the requisite abilities, including intelligence (Schmiemann, 2008).
According to (Roy and Wheeler, 2006) Environmental conditions also matters. First, opportunities may interact in interesting ways with the attributes of people. Second, the willingness to engage in entrepreneurial activities depends on such things as the legal system of the country in which the entrepreneur operates, the age of the industry, the available capital in the economy, the condition of capital markets, and the state of overall economy. We believe that these factors are important, but that it might also interesting to know whether motivations of particular people lead to different types of entrepreneurial action under different environmental conditions.
According to (Baum, 2004) profit is one the most leading reason which motivates people to become an entrepreneur. But there are several other factors which motivate people to become an entrepreneur in such as high profit maximization. These are many other factors which effects motivation so more information is needed to be known.
The entrepreneurial motivations determine the entrepreneurial process. Although the role of the environment and opportunities is important, the role of humans and motivation not get much attention. Entrepreneurial motivations are classified into two, namely: general and task-specific. Motivation general consists of; need for achievement, locus of control, vision, desire for independence, passion, drive. Meanwhile, specific task consists of; goal-setting, and self-efficacy. Both types of motivation determine the understanding and development opportunities so as to achieve success in the entrepreneurial process. Motivation has an important role in predicting the desire to be an entrepreneur. Entrepreneurship involves human role. The process of entrepreneurial occurs because people act to pursue opportunities. Human motivation determines the decision to become an entrepreneur and the entrepreneurial process. The differences will affect the entrepreneurial motivation. The external environment which consists of the business environment, socio-cultural factors, and external conflict nations can encourage and motivate entrepreneurs (Shane et al., 2003).
There are several inter and external factors which motivate people to become entrepreneur. The internal factor includes; Educational background, Occupational experience, Desire to do something pioneering and innovative, Desire to be free and independent and Family background. Internal factors constitute the personality of the entrepreneur and thereby generate an inclination to adopt entrepreneurial activity. Among the internal motivating factors, the desire to do something creative is important. It means the desire to make a contribution to the development of the state, to introduce an entirely new product in the market, to place the home town on the country’s industrial map, to make full use of technical skills, to provide employment to intelligent young men and women in the community, etc (Krishna, 2013) .
The factors which externally increase the motivation of people to become entrepreneur include:
Assistance from Government, financial assistance from institutions, availability of technology and / or raw materials, encouragement from big business units and heavy demand for product. Among the external factors, assistance from financial and other Governmental institutions has been rated the strongest motivator. Other factors include availability of surplus funds, sick units being available at a cheap price, success stories of first generation entrepreneurs, support of friends and relatives etc. in some cases there may be compelling reasons like loss of job, death of the father, dissatisfaction with the job held, etc., prompting people to launch their own industries (Krishna, 2013) .
Peoples are motivated by the reward structure in the economy. This economic perspective on new venture initiation focuses on the usefulness, utility, or desirability of an entrepreneurial career. People would become entrepreneurs if the expected rewards surpass the wages of employment. Because expected rewards depended on assessments of individual ability and attitudes towards risk, perceptions of entrepreneurial feasibility were included. People may be motivated to become entrepreneurs if they believe self-employment is more likely than working for others to lead to valued outcomes. It seemed to us that the motivation to become an entrepreneur is driven by the difference between the desirability of self-employment and the desirability of working for others (Schoenfeld, Borgia, & Segal, 2005)
(Robichaud, McGraw and Roger, 2001) have studied North American entrepreneurs and have grouped motivational factors into four categories. Extrinsic rewards which are source of motivation are for economic reasons and Independence/ autonomy. Intrinsic rewards are source of motivation which includes: self-fulfillment and growth and Family security.
(Wang, Walker & Redmond, 2006) did a study on motivations of small business owners in Western Australia, and pointed 17 motivational factors into four groups: Personal development motivations, financial motivations, Motivations related to work and family and Flexible lifestyle motivations.
(Kirkwood, 2009) did a similar study on entrepreneurs in New Zealand and mentions that there are four key drivers of entrepreneurial motivation. The first is the desire to be independent. This is cited as the number one motivating factor for many people in becoming entrepreneur. The second is monetary gain. People are not always motivated by money but it is found to be an important motivational factor for entrepreneurship. The third relates to issues around work, issues such as unemployment, redundancy and lack of job prospects. The fourth key driver involves family-related factors such as a desire for work-family balance.
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