1

SUBMITTED TO -:
ASSI. PROF.RAJNI ARORA SUBMITTED BY -:
AMAN KUMAR
B.B.A. 2
ND
YEAR
7939

(GOVT. MOHINDRA COLLEGE PATIALA)
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Acknowledgement
I am thankful to almighty God for blessings and support that he has bestowed upon me to contribute to the
learning process and giving me the strength to complete this project.

I would also thanks to my teacher Assi. Prof. Rajni Arora who give me an opportunity to work on the
project Motivation and Entrepreneurship.

Finally I wish to convey special thanks to my family members, friends and my teacher for providing the
extended support, co-ordination and guidance.



Aman Kumar
7939

























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INDEX

Sr. no.
CONTENT
Page no.
1. Motivation 4
2. Theories of motivation 4
3. Entrepreneurship 17
4. Theories of Entrepreneurship 18
5. Entrepreneurial Development 25
6. Entrepreneurial motivation 27
7. Factors of Entrepreneurial motivation 28
8. Institutes of entrepreneurial development 31
9. Quality and skilled of motivational entrepreneur 36
10. How you manage the employee motivation? 38
11. How you make the motivational environment for your
team to greatness?
39
12. Motivational strategies which use by the entrepreneur to
lead less personnel tenure.
42
13. Type of entrepreneur on the basis of motivation 44
14. Motivation is the real power to increase the employee
performance.
48
15. Conclusion 51
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16. Bibliography 52


Motivation

Motivation is a psychological feature that induces an organism to act towards a desired goal and elicits,
controls, and sustains certain goal-directed behaviors. It can be considered a driving force; a psychological
one that compels or reinforces an action toward a desired goal. For example, hunger is a motivation that
elicits a desire to eat. Motivation is the purpose or psychological cause of an action.
Motivation has been shown to have roots in physiological, behavioral, cognitive, and social areas. Motivation
may be rooted in a basic impulse to optimize well-being, minimize physical pain and maximize pleasure. It
can also originate from specific physical needs such as eating, sleeping or resting, and sex.
Motivation is an inner drive to behave or act in a certain manner. "It's the difference between waking up
before dawn to pound the pavement and lazing around the house all day." These inner conditions such as
wishes, desires and goals, activate to move in a particular direction in behavior.

Types of theories and models
Motivational theories a class of theories about why people do things seeks to reduce the number of factors
down to one and explain all behavior through that one factor. For example, economics has been criticized for
using self-interest as a mono-motivational theory. Mono-motivational theories are often criticized for being
too reductive or too abstract.
Conscious and unconscious motivations
A number of motivational theories emphasize the distinction between conscious and unconscious
motivations. In evolutionary psychology, the "ultimate", unconscious motivation may be a cold evolutionary
calculation; the conscious motivation could be more benign or even positive emotions. For example, while it
may be in the best interest of a male's genes to have multiple partners and thus break up with or divorce one
before moving onto the next, the conscious rationalization could be, "I loved her at the time".
Freud is associated with the idea that human beings have many unconscious motivations that cause them to
make important decisions because of these unconscious forces, such as choosing a partner.
Non-psychological theories
Platonic theory of motivation
In The Republic, Plato advances a tri-partite theory of the soul, which consists of three parts: reason, spirit
and appetite. All parts of the soul have desires, however not all desires are the same. Desires take many
different forms and have many different responses or results.
Machiavellianism
Machiavellism argues that human beings are motivated to seek power and status above all. Modern research
argues that people who are high in this trait do indeed seek power and money, and are willing to use others as
instruments towards that end.
Psychological theories and models
1. Rational motivations
The idea that human beings are rational and human behaviour is guided by reason is an old one. However,
recent research has significantly undermined the idea of homo economics or of perfect rationality in favors of
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a more bounded rationality. The field of behavioural economics is particularly concerned with the limits of
rationality in economic agents.
2. Intrinsic and extrinsic motivation
Motivation can be divided into two types: intrinsic (internal) motivation and extrinsic (external) motivation.
Intrinsic motivation
Intrinsic motivation refers to motivation that is driven by an interest or enjoyment in the task itself, and exists
within the individual rather than relying on external pressures or a desire for reward. Intrinsic motivation has
been studied since the early 1970s.The phenomenon of intrinsic motivation was first acknowledged within
experimental studies of animal behavior. In these studies, it was evident that the organisms would engage in
playful and curiosity driven behaviors in the absence of reward. Intrinsic motivation is a natural motivational
tendency and is a critical element in cognitive, social, and physical development. Students who are
intrinsically motivated are more likely to engage in the task willingly as well as work to improve their skills,
which will increase their capabilities. Students are likely to be intrinsically motivated if they:
attribute their educational results to factors under their own control, also known as autonomy
believe they have the skills to be effective agents in reaching their desired goals, also known as self-
efficacy beliefs
are interested in mastering a topic, not just in achieving good grades
Extrinsic motivation
Extrinsic motivation refers to the performance of an activity in order to attain an outcome, whether or not
that activity is also intrinsically motivated. Extrinsic motivation comes from outside of the individual.
Common extrinsic motivations are rewards (for example money or grades) for showing the desired behavior,
and the threat of punishment following misbehavior. Competition is in an extrinsic motivator because it
encourages the performer to win and to beat others, not simply to enjoy the intrinsic rewards of the activity.
A cheering crowd and the desire to win a trophy are also extrinsic incentives.
Comparison of intrinsic and extrinsic motivation
Social psychological research has indicated that extrinsic rewards can lead to overjustification and a
subsequent reduction in intrinsic motivation. In one study demonstrating this effect, children who expected to
be (and were) rewarded with a ribbon and a gold star for drawing pictures spent less time playing with the
drawing materials in subsequent observations than children who were assigned to an unexpected reward
condition. While the provision of extrinsic rewards might reduce the desirability of an activity, the use of
extrinsic constraints, such as the threat of punishment, against performing an activity has actually been found
to increase one's intrinsic interest in that activity. In one study, when children were given mild threats against
playing with an attractive toy, it was found that the threat actually served to increase the child's interest in the
toy, which was previously undesirable to the child in the absence of threat.
For those children who received no extrinsic reward, self-determination theory proposes that extrinsic
motivation can be internalized by the individual if the task fits with their values and beliefs and therefore
helps to fulfill their basic psychological needs.
3. Operant conditioning
Operant conditioning, a term coined by B.F. Skinner, is a method of learning that occurs through rewards and
punishments for behaviour. Skinner believed that internal thoughts and motivations could not be used to
explain behaviour; instead to look at external, observable causes of human behaviour. His theory explained
how we acquire the range of learned behaviors we exhibit each and every day.
4. Push and pull
This model is usually used when discussing motivation within the context of tourism. Push factors determine
the desire to go on holiday, whereas pull factors determine the choice of destination. Push motives are
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connected with internal forces, for example the need for relaxation or escapism, while pull factors are the
external factors, such as landscape, cultural image or the climate of a destination, that induce a traveler to
visit a certain location. Push factors can be stimulated by external and situational aspects of motivation in the
shape of pull factors. Then again pull factors are issues that can arise from a location itself and therefore
push an individual to choose to experience it. Since then, a large number of theories have been developed
over the years in many studies there is no single theory that illustrates all motivational aspects of travelling.
Many researchers have highlighted that because several motives may occur at the same time it should not be
assumed that only one motive drives an individual to perform an action, as was presumed in previous studies
On the other hand, since people are not able to satisfy all their needs at once, they usually seek to satisfy
some or a few of them.
5. Self-control
The self-control aspect of motivation is increasingly considered to be a subset of emotional intelligence; it is
suggested that although a person may be classed as highly intelligent main unmotivated to pursue intellectual
endeavors. Vroom's "expectancy theory" provides an account of when people may decide to exert self-
control in pursuit of a particular goal.
Drives Theory
A drive or desire can be described as a deficiency or need that activates behavior that is aimed at a goal or an
incentive. These drives are thought to originate within the individual and may not require external stimuli to
encourage the behavior. Basic drives could be sparked by deficiencies such as hunger, which motivates a
person to seek food whereas more subtle drives might be the desire for praise and approval, which motivates
a person to behave in a manner pleasing to others. Another basic drive is the sexual drive which like food
motivates us because it is essential to our survival. The desire for sex is wired deep into the brain of all
human beings as glands secrete hormones that travel through the blood to the brain and stimulates the onset
of sexual desire. . The hormonal basis of both men and women's sex drives is testosterone. Men naturally
have more testosterone than women do and so are more likely than woman to think about sex, have sexual
fantasies, seek sex and sexual variety (whether positions or partners), masturbate, want sex at an early point
in a relationship, sacrifice other things for sex, have permissive attitudes for sex, and complain about low sex
drive in their partners.
By contrast, the role of extrinsic rewards and stimuli can be seen in the example of training animals by
giving them treats when they perform a trick correctly. The treat motivates the animals to perform the trick
consistently, even later when the treat is removed from the process.
Incentive theory
A reward, tangible or intangible, is presented after the occurrence of an action (i.e. behavior) with the
intention of causing the behavior to occur again. This is done by associating positive meaning to the
behavior. Studies show that if the person receives the reward immediately, the effect is greater, and decreases
as delay lengthens. Repetitive action-reward combination can cause the action to become habit. Motivation
comes from two sources: oneself, and other people. These two sources are called intrinsic motivation and
extrinsic motivation, respectively.
Reinforces and reinforcement principles of behavior differ from the hypothetical construct of reward. A
reinforce is any stimulus change following a response that increases the future frequency or magnitude of
that response, therefore the cognitive approach is certainly the way forward as in 1973 Maslow described it
as being the golden pineapple. Positive reinforcement is demonstrated by an increase in the future frequency
or magnitude of a response due to in the past being followed contingently by a reinforcing stimulus. Negative
reinforcement involves stimulus change consisting of the removal of an aversive stimulus following a
response. Positive reinforcement involves a stimulus change consisting of the presentation or magnification
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of a positive stimulus following a response. From this perspective, motivation is mediated by environmental
events, and the concept of distinguishing between intrinsic and extrinsic forces is irrelevant.
Applying proper motivational techniques can be much harder than it seems. Steven Kerr notes that when
creating a reward system, it can be easy to reward A, while hoping for B, and in the process, reap harmful
effects that can jeopardize your goals.
Incentive theory in psychology treats motivation and behavior of the individual as they are influenced by
beliefs, such as engaging in activities that are expected to be profitable .Incentive theory distinguishes itself
from other motivation theories, such as drive theory, in the direction of the motivation. In incentive theory,
stimuli "attract", to use the term above, a person towards them, as opposed to the body seeking to reestablish
homeostasis and pushing towards the stimulus. In terms of behaviorism, incentive theory involves positive
reinforcement: the reinforcing stimulus has been conditioned to make the person happier. For instance, a
person knows that eating food, drinking water, or gaining social capital will make them happier. As opposed
to in drive theory, which involves negative reinforcement: a stimulus has been associated with the removal of
the punishmentthe lack of homeostasis in the body. For example, a person has come to know that if they
eat when hungry, it will eliminate that negative feeling of hunger, or if they drink when thirsty, it will
eliminate that negative feeling of thirst.
Escape-seeking dichotomy model
Escapism and seeking are major factors influencing decision making. Escapism is a need to break away from
a daily life routine, turning on the television and watching an adventure film, whereas seeking is described as
the desire to learn, turning on the television to watch a documentary. Both motivations have some
interpersonal and personal facets for example individuals would like to escape from family problems
(personal) or from problems with work colleagues (interpersonal). This model can also be easily adapted
with regard to different studies.
Drive-reduction theory
There are a number of drive theories. The Drive Reduction Theory grows out of the concept that people have
certain biological drives, such as hunger. As time passes the strength of the drive increases if it is not
satisfied. Upon satisfying a drive the drive's strength is reduced. The theory is based on diverse ideas from
the theories of Freud to the ideas of feedback control systems, such as a thermostat.
Drive theory has some intuitive or folk validity. For instance when preparing food, the drive model appears
to be compatible with sensations of rising hunger as the food is prepared, and, after the food has been
consumed, a decrease in subjective hunger. There are several problems, however, that leave the validity of
drive reduction open for debate. The first problem is that it does not explain how secondary rein forcers
reduce drive. For example, money satisfies no biological or psychological needs, but a pay check appears to
reduce drive through second-order conditioning. Secondly, a drive, such as hunger, is viewed as having a
"desire" to eat, making the drive a homuncular beinga feature criticized as simply moving the fundamental
problem behind this "small man" and his desires.
Drive reduction theory cannot be a complete theory of behavior, or a hungry human could not prepare a meal
without eating the food before he finished cooking it. The ability of drive theory to cope with all kinds of
behavior, from not satisfying a drive (by adding on other traits such as restraint), or adding additional drives
for "tasty" food, which combine with drives for food in order to explain cooking render it hard to test.
Cognitive dissonance theory
Cognitive dissonance occurs when an individual experiences some degree of discomfort resulting from an
inconsistency between two cognitions: their views on the world around them, and their own personal feelings
and actions. For example, a consumer may seek to reassure themselves regarding a purchase, feeling in
retrospect that another decision may have been preferable. Their feeling that another purchase would have
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been preferable is inconsistent with their action of purchasing the item. The difference between their feelings
and beliefs causes dissonance, so they seek to reassure themselves.
While not a theory of motivation, per se, the theory of cognitive dissonance proposes that people have a
motivational drive to reduce dissonance. The cognitive miser perspective makes people want to justify things
in a simple way in order to reduce the effort they put into cognition. They do this by changing their attitudes,
beliefs, or actions, rather than facing the inconsistencies, because dissonance is a mental strain. Dissonance is
also reduced by justifying, blaming, and denying. It is one of the most influential and extensively studied
theories in social psychology.
Need theories
Motivation, as defined by Pritchard and Ashwood, is the process used to allocate energy to maximize the
satisfaction of needs.
Maslow's hierarchy of needs
Content theory of human motivation includes both Abraham Maslow's hierarchy of needs and Herzberg's
two-factor theory. Maslow's theory is one of the most widely discussed theories of motivation.
The American motivation psychologist Abraham H. Maslow developed the hierarchy of needs consisting of
five hierarchic classes. According to Maslow, people are motivated by unsatisfied needs. The needs, listed
from basic (lowest-earliest) to most complex (highest-latest) are as follows:
Physiology (hunger, thirst, sleep, etc.)
Safety/Security/Shelter/Health
Belongingness/Love/Friendship
Self-esteem/Recognition/Achievement
Self actualization
The basic requirements build upon the first step in the pyramid: physiology. If there are deficits on this level,
all behavior will be oriented to satisfy this deficit. Essentially, if you have not slept or eaten adequately, you
won't be interested in your self-esteem desires. Subsequently we have the second level, which awakens a
need for security. After securing those two levels, the motives shift to the social sphere, the third level.
Psychological requirements comprise the fourth level, while the top of the hierarchy consists of self-
realization and self-actualization.
Maslow's Hierarchy of Needs theory can be summarized as follows:
Human beings have wants and desires which influence their behavior. Only unsatisfied needs
influence behavior, satisfied needs do not.
Needs are arranged in order of importance to human life, from the basic to the complex.
The person advances to the next level of needs only after the lower level need is at least minimally
satisfied.
The further the progress up the hierarchy, the more individuality, humanness and psychological
health a person will show.

Herzberg's two-factor theory
Frederick Herzberg's two-factor theory, a.k.a. intrinsic/extrinsic motivation, concludes that certain factors in
the workplace result in job satisfaction, but if absent, they don't lead to dissatisfaction but no satisfaction.
The factors that motivate people can change over their lifetime, but "respect for me as a person" is one of the
top motivating factors at any stage of life.
He distinguished between:
Motivators; (e.g. challenging work, recognition, responsibility) which give positive satisfaction, and
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Hygiene factors; (e.g. status, job security, salary and fringe benefits) that do not motivate if present,
but, if absent, result in demotivation.
The name hygiene factors are used because, like hygiene, the presence will not improve health, but absence
can cause health deterioration. Herzberg's theory has found application in such occupational fields as
information systems and in studies of user satisfaction such as computer user satisfaction.

Alderfer's ERG theory
Alderfer, expanding on Maslow's hierarchy of needs, created the ERG theory. This theory posits that there
are three groups of core needs existence, relatedness, and growth, hence the label: ERG theory. The
existence group is concerned with providing our basic material existence requirements. They include the
items that Maslow considered to be physiological and safety needs. The second groups of needs are those of
relatedness- the desire we have for maintaining important personal relationships. These social and status
desires require interaction with others if they are to be satisfied, and they align with Maslow's social need and
the external component of Maslow's esteem classification. Finally, Alderfer isolates growth needs as an
intrinsic desire for personal development. These include the intrinsic component from Maslow's esteem
category and the characteristics included under self-actualization.
Self-determination theory
During the early nineties Edward L. Deci and Richard M. Ryan

proposed the self-determination theory
(SDT). This theory focuses on the degree to which an individuals behaviour is self-motivated and self-
determined. SDT identifies three innate needs that, if satisfied, allow optimal function and growth:
competence, relatedness, and autonomy. These three psychological needs motivate the self to initiate specific
behaviour and mental nutriments that are essential for psychological health and well-being. When these
needs are satisfied, there are positive consequences, such as well-being and growth, leading people to be
motivated, productive and happy. When they are thwarted, people's motivation, productivity and happiness
plummet.
There are three essential elements to the theory:
Humans are inherently proactive with their potential and mastering their inner forces (such as drive
and emotions).
Humans have an inherent tendency towards growth, development and integrated functioning.
Optimal development and actions are inherent in humans but they do not happen automatically.
Temporal motivation theory
The latest approach in developing a broad, integrative theory of motivation is Temporal Motivation Theory.
Introduced in a 2006 Academy of Management Review article, it synthesizes into a single formulation the
primary aspects of several other major motivational theories, including Incentive Theory, Drive Theory,
Need Theory, Self-Efficacy and Goal Setting. It simplifies the field of motivation and allows findings from
one theory to be translated into terms of another. Another journal article that helped to develop the Temporal
Motivation Theory, "The Nature of Procrastination, " received American Psychological Association's George
A. Miller award for outstanding contribution to general science.
Achievement motivation
Achievement motivation is an integrative perspective based on the premise that performance motivation
results from the way broad components of personality are directed towards performance. As a result, it
includes a range of dimensions that are relevant to success at work but which are not conventionally regarded
as being part of performance motivation. The emphasis on performance seeks to integrate formerly separate
approaches as need for achievement with, for example, social motives like dominance. Personality is
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intimately tied to performance and achievement motivation, including such characteristics as tolerance for
risk, fear of failure, and others.
Achievement motivation can be measured by The Achievement Motivation Inventory, which is based on this
theory and assesses three factor re0levant to vocational and professional success. This motivation has
repeatedly been linked with adaptive motivational patterns, including working hard, a willingness to pick
learning tasks with much difficulty, and contributing success to effort.
The research showed that business managers who were successful demonstrated a high need to achieve no
matter the culture. There are three major characteristics of people who have a great need to achieve according
to McClellands research.
1. They would prefer a work environment in which they are able to assume responsibility for solving
problems.
2. They would take calculated risk and establish moderate, attainable goals.
3. They want to hear continuous recognition, as well as feedback, in order for them to know how well
they are doing.
Cognitive theories
Goal-setting theory
Goal-setting theory is based on the notion that individuals sometimes have a drive to reach a clearly defined
end state. Often, this end state is a reward in itself. A goal's efficiency is affected by three features:
proximity, difficulty and specificity. Good goal setting incorporates the SMART criteria, in which goals are:
specific, measurable, accurate, realistic, and timely. An ideal goal should present a situation where the time
between the initiation of behavior and the end state is close. This explains why some children are more
motivated to learn how to ride a bike than to master algebra. A goal should be moderate, not too hard or too
easy to complete. In both cases, most people are not optimally motivated, as many want a challenge (which
assumes some kind of insecurity of success). At the same time people want to feel that there is a substantial
probability that they will succeed. Specificity concerns the description of the goal in their class. The goal
should be objectively defined and intelligible for the individual. A classic example of a poorly specified goal
is to get the highest possible grade. Most children have no idea how much effort they need to reach that goal.
Models of behavior change
Social-cognitive models of behavior change include the constructs of motivation and volition. Motivation is
seen as a process that leads to the forming of behavioral intentions. Volition is seen as a process that leads
from intention to actual behavior. In other words, motivation and volition refer to goal setting and goal
pursuit, respectively. Both processes require self-regulatory efforts. Several self-regulatory constructs are
needed to operate in orchestration to attain goals. An example of such a motivational and volitional construct
is perceived self-efficacy. Self-efficacy is supposed to facilitate the forming of behavioral intentions, the
development of action plans, and the initiation of action. It can support the translation of intentions into
action.
John W. Atkinson, David Birch and their colleagues developed the theory of "Dynamics of Action" to
mathematically model change in behavior as a consequence of the interaction of motivation and associated
tendencies toward specific actions .The theory posits that change in behavior occurs when the tendency for a
new, unexpressed behavior becomes dominant over the tendency currently motivating action. In the theory,
the strength of tendencies rises and falls as a consequence of internal and external stimuli (sources of
instigation), inhibitory factors, and consummatory in factors such as performing an action. In this theory,
there are three causes responsible for behavior and change in behavior:
1. Instigation (Ts) - increases tendency when an activity has intrinsic ability to satisfy;
2. Inhibition (Taf) - decreases tendency when there are obstacles to performing an activity; and
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3. Consummation - decreases a tendency as it is performed.
Conscious motivation: This is a kind of motivation that people are aware of.
Unconscious motivation: Some psychologists believe that a significant portion of human behavior is
energized and directed by unconscious motives. According to Maslow, "Psychoanalysis has often
demonstrated that the relationship between a conscious desire and the ultimate unconscious aim that
underlies it need not be at all direct."
Intrinsic motivation and the 16 basic desires theory
Starting from studies involving more than 6,000 people, Professor Steven Reiss has proposed a theory that
found 16 basic desires that guide nearly all human behavior. The 16 basic desires that motivate our actions
and define our personalities are:
Acceptance, the need for approval
Curiosity, the need to learn
Eating, the need for food
Family, the need to raise children
Honor, the need to be loyal to the traditional values of one's clan/ethnic group
Idealism, the need for social justice
Independence, the need for individuality
Order, the need for organized, stable, predictable environments
Physical activity, the need for exercise
Power, the need for influence of will
Romance, the need for sex and for beauty
Saving, the need to collect
Social contact, the need for friends (peer relationships)
Social status, the need for social standing/importance
Tranquility, the need to be safe
Vengeance, the need to strike back and to compete
Attribution Theory
The attribution theory is a theory developed by psychologist, Fritz Heider that describes the processes by
which individuals explain the causes of their behavior and events. A form of attribution theory developed by
psychologist, Bernard Weiner describes an individuals beliefs about how the causes of success or failure
affect their emotions and motivations. Bernard Weiners theory can be defined into two perspectives:
intrapersonal or interpersonal. The intrapersonal perspective includes self-directed thoughts and emotions
that are attributed to the self. The interpersonal perspective includes beliefs about the responsibility of others
and other directed affects of emotions; the individual would place the blame on another individual.
Individuals formulate explanatory attributions to understand the events they experience and to seek reasons
for their failures. When individuals seek positive feedback from their failures, they use the feedback as
motivation to show improved performances. For example, using the intrapersonal perspective, a student who
failed a test may attribute their failure for not studying enough and would use their emotion of shame or
embarrassment as motivation to study harder for the next test. A student who blames their test failure on the
teacher would be using the interpersonal perspective, and would use their feeling of disappointment as
motivation to rely on a different study source other than the teacher for the next test.
Approach versus avoidance
Approach motivation is a motivation to experience a positive outcome. In contrast, avoidance motivation is a
motivation not to experience a negative outcome. Research suggests that, all else being equal, avoidance
motivations tend to be more powerful than approach motivations. Because people expect losses to have more
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powerful emotional consequences than equal-size gains, they will take more risks to avoid a loss than to
achieve a gain.
Practical applications
The control of motivation is only understood to a limited extent. There are many different approaches of
motivation training, but many of these are considered pseudoscientific by critics. To understand how to
control motivation it is first necessary to understand why many people lack motivation.
Employee motivation
Workers in any organization need something to keep them working. Most of the time, the salary of the
employee is enough to keep him or her working for an organization. An employee must be motivated to work
for a company or organization. If no motivation is present in an employee, then that employees quality of
work or all work in general will deteriorate. People differ on a personality dimension called locus of control.
This variable refers to individual's beliefs about the location of the factors that control their behavior. At one
end of the continuum are high internals who believe that opportunity to control their own behavior rests
within themselves. At the other end of the continuum there are high externals who believe that external
forces determine their behavior. Not surprisingly, compared with internals, externals see the world as an
unpredictable, chancy place in which luck, fate, or powerful people control their destinies.
[43]
When
motivating an audience, you can use general motivational strategies or specific motivational appeals. General
motivational strategies include soft sell versus hard sell and personality type. Soft sell strategies have logical
appeals, emotional appeals, advice and praise. Hard sell strategies have barter, outnumbering, pressure and
rank. Also, you can consider basing your strategy on your audience personality. Specific motivational
appeals focus on provable facts, feelings, right and wrong, audience rewards and audience threats.
[44]

Job Characteristics Model
The Job Characteristics Model (JCM), as designed by Hackman and Oldham attempts to use job design to
improve employee motivation. They show that any job can be described in terms of five key job
characteristics:
1. Skill Variety - the degree to which the job requires the use of different skills and talents
2. Task Identity - the degree to which the job has contributed to a clearly identifiable larger project
3. Task Significance - the degree to which the job has an impact on the lives or work of other people
4. Autonomy - the degree to which the employee has independence, freedom and discretion in carrying out
the job
5. Task Feedback - the degree to which the employee is provided with clear, specific, detailed, actionable
information about the effectiveness of his or her job performance
The JCM links the core job dimensions listed above to critical psychological states which results in desired
personal and work outcomes. This forms the basis of this 'employee growth-need strength." The core
dimensions listed above can be combined into a single predictive index, called the Motivating Potential
Score.
Motivating Potential Score
The motivating potential score (MPS) can be calculated, using the core dimensions discussed above, as
follows:
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Jobs that are high in motivating potential must be high on at least one of the three factors that lead to
experienced meaningfulness, and also must be high on both Autonomy and Feedback. If a job has a high
MPS, the job characteristics model predicts that motivation, performance and job satisfaction will be
positively affected and the likelihood of negative outcomes, such as absenteeism and turnover, will be
reduced.
Employee recognition programs
Employee recognition is not only about gifts and points. It's about changing the corporate culture in order to
meet goals and initiatives and most importantly to connect employees to the company's core values and
beliefs. Strategic employee recognition is seen as the most important program not only to improve employee
retention and motivation but also to positively influence the financial situation. The difference between the
traditional approach (gifts and points) and strategic recognition is the ability to serve as a serious business
influencer that can advance a companys strategic objectives in a measurable way. "The vast majority of
companies want to be innovative, coming up with new products, business models and better ways of doing
things. However, innovation is not so easy to achieve. A CEO cannot just order it, and so it will be. You have
to carefully manage an organization so that, over time, innovations will emerge."
Drugs
Some authors, especially in the transhumanist movement, have suggested the use of "smart drugs", also
known as nootropics, as "motivation-enhancers". These drugs work in various ways to affect
neurotransmitters in the brain. It is generally widely accepted that these drugs enhance cognitive functions,
but not without potential side effects. The effects of many of these drugs on the brain are emphatically not
well understood, and their legal status often makes open experimentation difficult.
Education
Motivation is of particular interest to educational psychologists because of the crucial role it plays in student
learning. However, the specific kind of motivation that is studied in the specialized setting of education
differs qualitatively from the more general forms of motivation studied by psychologists in other fields.
Motivation in education can have several effects on how students learn and how they behave towards subject
matter. It can:
1. Direct behavior toward particular goals
2. Lead to increased effort and energy
3. Increase initiation of, and persistence in, activities
4. Enhance cognitive processing
5. Determine what consequences are reinforcing
6. Lead to improved performance.
Because students are not always internally motivated, they sometimes need situated motivation, which is
found in environmental conditions that the teacher creates.
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If teachers decided to extrinsically reward productive student behaviors, they may find it difficult to extricate
themselves from that path. Consequently student dependency on extrinsic rewards represents one of the
greatest detractors from their use in the classroom.
The majority of new student orientation leaders at colleges and universities recognize that distinctive needs
of students should be considered in regard to orientation information provided at the beginning of the higher
education experience. Research done by Whyte in 1986 raised the awareness of counselors and educators in
this regard. In 2007, the National Orientation Directors Association reprinted Cassandra B. Whyte's research
report allowing readers to ascertain improvements made in addressing specific needs of students over a
quarter of a century later to help with academic success.
Generally, motivation is conceptualized as either intrinsic or extrinsic. Classically, these categories are
regarded as distinct. Today, these concepts are less likely to be used as distinct categories, but instead as two
ideal types that define a continuum:
Intrinsic motivation occurs when people are internally motivated to do something because it either
brings them pleasure, they think it is important, or they feel that what they are learning is significant.
It has been shown that intrinsic motivation for education drops from grades 3-9 though the exact
cause cannot be ascertained. Also, in younger students it has been shown that contextualizing
material that would otherwise be presented in an abstract manner increases the intrinsic motivation of
these students.
Extrinsic motivation comes into play when a student is compelled to do something or act a certain
way because of factors external to him or her (like money or good grades).
Cassandra B. Whyte researched and reported about the importance of locus of control and academic
achievement. Students tending toward a more internal locus of control are more academically successful,
thus encouraging curriculum and activity development with consideration of motivation theories.
Academic motivation orientation may also be tied with one's ability to detect and process errors. Fisher,
Nanayakkara, and Marshall conducted neuroscience research on children's motivation orientation,
neurological indicators of error monitoring (the process of detecting an error), and academic achievement.
Their research suggests that students with high intrinsic motivation attribute performance to personal control
and that their error-monitoring system is more strongly engaged by performance errors. They also found that
motivation orientation and academic achievement were related to the strength in which their error-monitoring
system was engaged.
Motivation has been found to be an important element in the concept of Andragogy (what motivates the adult
learner), and in treating Autism Spectrum Disorders, as in Pivotal Response Therapy.
Doyle and Moeyn have noted that traditional methods tended to use anxiety as negative motivation (e.g. use
of bad grades by teachers) as a method of getting students to work. However, they have found that
progressive approaches with focus on positive motivation over punishment has produced greater
effectiveness with learning, since anxiety interferes with performance of complex tasks.
Indigenous education, learning, and motivation
For many indigenous students (such as Native American children), motivation may be derived from social
organization; an important factor educators should account for in addition to variations in Sociolinguistics
and Cognition. While poor academic performance among Native American students is often attributed to low
levels of motivation, Top-down classroom organization is often found to be ineffective for children of many
cultures, who depend on a sense of community purpose and competence to effectively engage in material.
[63]

Horizontally-structured, community-based learning strategies often provide a more structurally supportive
environment for motivating indigenous children, who tend to be driven by social/affective emphasis,
harmony, holistic perspectives, expressive creativity, and nonverbal communication. This drive is also
15

traceable to a cultural tradition of community-wide expectations of participation in the activities and goals of
the greater group, rather than individualized aspirations of success or triumph.
Structure for social learning in indigenous communities also often allows siblings to co-parent younger
children in their acquisition of behaviors and traditions, which fosters the dynamic of community-motivated
engagement from a young age. Furthermore, it is commonplace for children to assist and demonstrate for
their younger counterparts without being prompted by authority figures. Observation techniques are
demonstrated in such examples as weaving in Chiapas, Mexico, where it is commonplace for children to
learn by "a more skilled other" within the community. The assumption of responsibility amongst children is
also apparent within Mayan weaving apprenticeships; often, when the "more skilled other" is tasked with
multiple obligations, an older child will step in and guide the learner. Sibling guidance is supported from
early youth, where learning through play encourages horizontally-structured environments through
alternative educational models such as "Intent Community Participation." Research also suggests that that
formal Westernized schooling can actually reshape the traditionally collaborative nature of social life in
indigenous communities. This research is supported cross-culturally, with variations in motivation and
learning often reported higher between indigenous groups and their national Westernized counterparts than
between indigenous groups across international continental divides.
Self-determination in education
Self-determination is the ability to make choices and exercise a high degree of control, such as what the
student does and how they do it. Self-determination can be supported by providing opportunities for students
to be challenged, such as leadership opportunities, providing appropriate feedback and fostering, establishing
and maintaining good relationships between teachers and students. These strategies can increase students'
interest, competence, creativity and desire to be challenged and ensure that students are intrinsically
motivated to study. On the other hand, students who lack of self-determination are more likely to feel their
success is out of their control. Such students lose motivation to study, which causes a state of "helpless
learning". Students who feel helpless readily believe they will fail and therefore cease to try. Over time, a
vicious circle of low achievement develops.
Physical activity in education
Physical activity is body movement that works your muscles and requires more energy than resting.
According to a blog by the American Intercontinental University, college students should make time for
exercise to maintain and increase motivation. AIU states that regular exercise has impeccable effects on the
brain. With consistent running routines, there are more complex connections between neurons, meaning the
brain is able to access its brain cells more flexibly. By performing well physically, motivation will be present
in education because of how well the brain is performing. After exercising, the brain can have more desire to
obtain knowledge and better retain the information. In addition, exercise can relieve stress. Exercising can
ease anxiety and relieve negative effects of stress on the body. Without stress factors, individuals can
perform better and more efficiently, since their minds will have a more positive outlook. This positive mood
will help keep students motivated and more open and willing to succeed academically. Lastly, exercise
increases focus and concentration that could also help students maintain their motivation and focus on their
studies. AIU claims that exercise may have improved the students ability to participate and retain
information during the class after they had exercised. By being able to retain information and be more
willing to participate will keep the students motivated and perform academically well.
Healthy sleeping habits in education
Sleep is a natural periodic state of rest for the mind and body. According to the American Academy of Sleep
Medicine, it is important and essential for students to obtain the right amount of sleep in order to succeed in
academics. AASM states that getting good nights of sleep is one of the best ways to maximize performance
on finals. It is possible that the more chaotic and sporadic ones sleeping schedule is, the harder it will be for
16

that individual to get an A or B on an exam. Dr. Kushida from AASM proclaims that sleep loss may lead to
learning and memory impairment. In addition, she also comments that lack of sleep can lead to decreased
attention and vigilance. So, with small amounts of sleep, individuals cannot maintain all their memory or
focus needed to score well in their classes. Therefore, sleep is a requirement in education if the individual
wants to succeed academically. The right amount of sleep will enable individuals to keep their motivation
and good grades in education. Without sleep, students and individuals memory capacity can become so
minimal that it is possible for them not to even remember what they are supposed to do in a days time. In
addition, with a lack of sleep, students cannot physically withhold and function for a long time, since their
bodies will not have the energy. So, with enough sleep, students minds will be clearer and have more
potential to contain information. At the same time, students would be granted with more motivation and
energy since their minds and bodies will be more willing to obtain information.

Work motivation
At lower levels of Maslow's hierarchy of needs, such as physiological needs, money is a motivator, however
it tends to have a motivating effect on staff that lasts only for a short period (in accordance with Herzberg's
two-factor model of motivation). At higher levels of the hierarchy, praise, respect, recognition, empowerment
and a sense of belonging are far more powerful motivators than money, as both Abraham Maslow's theory of
motivation and Douglas McGregor's theory X and theory Y (pertaining to the theory of leadership)
demonstrate.
According to Maslow, people are motivated by unsatisfied needs. The lower level needs such as
Physiological and Safety needs will have to be satisfied before higher level needs are to be addressed. We
can relate Maslow's Hierarchy of Needs theory with employee motivation. For example, if a manager is
trying to motivate his employees by satisfying their needs; according to Maslow, he should try to satisfy the
lower level needs before he tries to satisfy the upper level needs or the employees will not be motivated. Also
he has to remember that not everyone will be satisfied by the same needs. A good manager will try to figure
out which levels of needs are active for a certain individual or employee.
Maslow has money at the lowest level of the hierarchy and shows other needs are better motivators to staff.
McGregor places money in his Theory X category and feels it is a poor motivator. Praise and recognition are
placed in the Theory Y category and are considered stronger motivators than money.
Motivated employees always look for better ways to do a job.
Motivated employees are more quality oriented.
Motivated workers are more productive.
The average workplace is about midway between the extremes of high threat and high opportunity.
Motivation by threat is a dead-end strategy, and naturally staff is more attracted to the opportunity side of the
motivation curve than the threat side. Motivation is a powerful tool in the work environment that can lead to
employees working at their most efficient levels of production.
Nonetheless, Steinmetz also discusses three common character types of subordinates: ascendant, indifferent,
and ambivalent who all react and interact uniquely, and must be treated, managed, and motivated
accordingly. An effective leader must understand how to manage all characters, and more importantly the
manager must utilize avenues that allow room for employees to work, grow, and find answers independently.
The assumptions of Maslow and Herzberg were challenged by a classic study at Vauxhall Motors' UK
manufacturing plant. This introduced the concept of orientation to work and distinguished three main
orientations: instrumental (where work is a means to an end), bureaucratic (where work is a source of status,
security and immediate reward) and solid a ristic.
17

Other theories which expanded and extended those of Maslow and Herzberg included Kurt Lewin's Force
Field Theory, Edwin Locke's Goal Theory and Victor Vroom's Expectancy theory. These tend to stress
cultural differences and the fact that individuals tend to be motivated by different factors at different times.
According to the system of scientific management developed by Frederick Winslow Taylor, a worker's
motivation is solely determined by pay, and therefore management need not consider psychological or social
aspects of work. In essence, scientific management bases human motivation wholly on extrinsic rewards and
discards the idea of intrinsic rewards.
In contrast, David McClelland believed that workers could not be motivated by the mere need for moneyin
fact, extrinsic motivation (e.g., money) could extinguish intrinsic motivation such as achievement
motivation, though money could be used as an indicator of success for various motives, e.g., keeping score.
In keeping with this view, his consulting firm, McBer & Company, had as its first motto "To make everyone
productive, happy, and free." For McClelland, satisfaction lay in aligning a person's life with their
fundamental motivations.
Elton Mayo found that the social contacts a worker has at the workplace are very important and that boredom
and repetitiveness of tasks lead to reduced motivation. Mayo believed that workers could be motivated by
acknowledging their social needs and making them feel important. As a result, employees were given
freedom to make decisions on the job and greater attention was paid to informal work groups. Mayo named
the model the Hawthorne effect. His model has been judged as placing undue reliance on social contacts
within work situations for motivating employees.
William Ouchi introduced Theory Z, a hybrid management approach consisting of both Japanese and
American philosophies and cultures. Its Japanese segment is much like the clan culture where organizations
focus on a standardized structure with heavy emphasis on socialization of its members. All underlying goals
are consistent across the organization. Its American segment retains formality and authority amongst
members and the organization. Ultimately, Theory Z promotes common structure and commitment to the
organization, as well as constant improvement of work efficacy.
In Essentials of Organizational Behavior, Robbins and Judge examine recognition programs as motivators,
and identify five principles that contribute to the success of an employee incentive program:
Recognition of employees' individual differences, and clear identification of behavior deemed worthy
of recognition
Allowing employees to participate
Linking rewards to performance
Rewarding of nominators
Visibility of the recognition process
Games
Motivational models are central to game design, because without motivation a player will not be interested in
progressing further within a game. Several models for game play motivations have been proposed, including
Richard Bartle's. Jon Radoff has proposed a four-quadrant model of game play motivation that includes
cooperation, competition, immersion and achievement. The motivational structure of games is central to the
game fiction trend, which seeks to apply game-based motivation to business applications.

Entrepreneurship
In political economics, entrepreneurship is a process of identifying and starting a business venture, sourcing
and organizing the required resources and taking both the risks and rewards associated with the venture.
Definitions and Approaches
1. Economic Approach :
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Economists like Richard Cantillon, Adam Smith,J.B. Say, Carl Menger, Joseph Schumpeter have explained
the concept of entrepreneurship from the economic point of view. According to the economic approach
entrepreneurship is the process of initiating a new venture by organizing the resources required and accepting
the risk involved therein. Entrepreneurship and ultimately economic development takes place when the
economic condition is favourable. An entrepreneur buys the factors of production at a certain price, converts
them into products and sells them at an uncertain price. Thus, economists have emphasized two main aspects,
viz. innovation and risk bearing. The entrepreneurs create new things, use new technology, find new sources
of raw material, source of new markets and so on. By the innovation function entrepreneurs make available
new products to the people and help to raise their standard of living.
2. Sociological Approach :
Sociologists have emphasized the impact of social system, ethics, values, customs, and perception on
entrepreneurship. They hold that entrepreneurship flourishes in those societies, which recognize the services
of entrepreneurs, respect them and give approval to the business and wealth creation. According to them
entrepreneur represents societys model personality.
3. Psychological Approach :
According to the psychological approach entrepreneurship is influenced by factors like high achievement,
motive, self-reliance, creativity, desire to regain the lost status. The psychological approach is developed by
Macmilan and Hansen.
4. Modern Approach :
The modern approach states that entrepreneurs have to function under adverse conditions. There is a scarcity
of labour, shortage of capital and uncertain market. Hence they require to possess organizing skills,
innovative ability, decision making ability, risk bearing capacity.
Definition of Entrepreneurship :
Let us now study select definitions of entrepreneurship:
1. Higgins B :
Entrepreneurship is the function of seeking investment and production opportunity, organizing an enterprise
to undertake a new production, process, raising capital, hiring labour, arranging the supply of raw materials,
finding site, introducing new techniques and commodities, discovering new sources of raw materials, and
selecting top managers of day-to-day operations of the enterprise.
2. Joseph Schumpeter :
Entrepreneurship essentially consists in doing things that are not generally done in the ordinary course of
business routine.
4.Peter Drucker :
Entrepreneurship occurs when resources are redirected to progressive opportunities not used to ensure
administrative efficiency. Entrepreneurship is not natural; it is not creative. It is work. Entrepreneurship
requires entrepreneurial management.
4.John Kao :
Entrepreneurship is an attempt to create value through recognition of business opportunity, the management
of risk taking appropriate to the opportunity and through the communicative and managerial skills to
mobilize human, financial and material resources.
Theories of Entrepreneurship:
Various authorities have developed various theories of entrepreneurship. Let us now discuss some important
theories of entrepreneurship.
1. Schumpeters Theory of Innovation :
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Joseph Schumpeter in 1934 has developed the famous innovative theory of entrepreneurship. Schumpeter has
tried to establish correlation between the economic activity and economic development of a country.
According to him the innovation function of entrepreneurs is responsible for the rapid economic
development of any country. Schumpeter states that entrepreneur is basically an innovator who introduces
new combinations as mentioned below :
Organizing
Decision-making
Managing
Dynamic process
Innovative
Risk-bearing
Accepting
Challenges
Entrepreneurship
a) Introduction of a new good which consumers are not yet familiar or a new quality of a good.
b) Introduction of new technology of production
c) Opening a new market
d) Discovering a new source of raw material
e) Carrying out a new form of organization either creating a monopoly position or breaking up of a
monopoly position in the industry.
Schumpeter made a distinction between an innovator and an inventor. The inventor discovers new materials
and new methods. Where as the innovator utilizes these inventions and discoveries in order to make new
combinations. He further states that an individual is an entrepreneur only when he carries out new
combinations and ceases to be an entrepreneur, the moment he runs the established business. In other words
innovation is the main function of entrepreneur and not the maintenance of the enterprise.
Critical evaluation :
Schumpeters theory of innovation has been criticized on the following grounds.
i) Schumpeter has given undue emphasis on the innovative function entrepreneurs and has ignored the other
equally important functions viz. risk taking and organizing.
ii) Schumpeters theory holds goods to developed countries only. In underdeveloped and developing
countries there is a scarcity of innovative entrepreneurs.
iii) Schumpeter does not consider individuals running the established enterprises as entrepreneurs.
iv) Schumpeters theory neglects the role of small entrepreneurs in economic development. It stresses on
establishment of large enterprises based on new combinations of production.
v) According to Schumpeter, there is no separate class of entrepreneurs i a society.
vi) Schumpeters theory fails to give satisfactory answer to questions like why some countries have more
entrepreneurship talent than others. In spite of the above criticism Schumpeters theory is regarded as a
milestone in the development of entrepreneurship theories.
2) Mc-Clelands Need Achievement Theory :
This theory of entrepreneurship is developed by David Mc-Cleland. David Mc-Cleland and his colleagues
studied the motives responsible for entrepreneurs development and concluded that high achievement motive
induces an individual towards entrepreneurship. Mc-Cleland states that individuals with high need
achievement will be motivated to become entrepreneur. It is a tendency to strive for excellence, ones
performance, achieving high levels of success for the sake of personal accomplishment and not for the sake
of just monetary rewards. The motive of hi-achievement guides the actions of people and induces them
20

towards entrepreneurship. People with high need achievement motive are more likely succeed as
entrepreneurs.
Mc-Cleland further states that it is possible to inculcate the need for achievement motive in a person.
Deliberate efforts are required to be made from the childhood of a person. If the child is given training with
emphasis on standards of excellence, maternal warmth, self-reliance and low father domination the child can
afterwards become an entrepreneur. Mc-Cleland identified two main characteristics of entrepreneurship viz.
doing things in a new and better way and taking decision under uncertainty, parents can bring up their
children in a particular manner which helps to raise the level of achievement motivation.
Thus Mc-Clelands theory gives emphasis on psychological factors entrepreneurship development. Such
persons excel in their pursuit not for the sake of monetory rewards or gaining social prestige but for the sake
of an inner feeling of personal accomplishment.

l Critical evaluation :
a. Mc-Cleland takes into consideration psychological factors only and ignores the impact of other factors on
entrepreneurs development.
b. It is not possible for all families and educational institutions to inculcate the achievement motivation in
children.
c. It is not necessary to put efforts on developing achievement motivation from the childhood itself. It is
possible to impart entrepreneurial training at later stages also.
3. Kunkels Theory of Social Behavior :
Kunkels theory deals with social behaviour in the context of entrepreneurship supply. According to Kunkel,
supply of entrepreneurs is a function of social, political and economic structure. Individuals are performing
various activities in a society of these activities some are accepted by the society and those activities are
rewarded. The reward acts as a stimulating factor for the repeated behaviour of an individual. This pattern of
social behaviour is nothing but entrepreneurial behaviour. The supply of entrepreneurship depends upon
following four structures found in a society.
a) Limitation structure: The society limits specific activities. This limitation structure affects not only the
entrepreneurs but also all other members of a society.
b) Demand Structure: The individuals demand rewards for their acts. The demand structure motivates
individual towards entrepreneurship.
c) Opportunity Structure: Opportunity structure comprises of the availability of capital, management,
technological skills and information about production methods, labour and market. Favourable opportunity
structure increases the supply of entrepreneurship.
d) Labour Structure: It is related with the supply of competent and willing labour. The supply of labour
depends on a number of factors like alternative means of livelihood, traditionalism and expectations of life.
Entrepreneurship supply increases when the labour structure is favourable.
Critical evaluation:
Kunkels theory assumes the ideal structure for the supply of entrepreneurship. But in reality we rarely find
such ideal structures.


21


In 2012, Ambassador-at-Large for Global Women's Issues Melanne Verveer greeted participants in an
African Women's Entrepreneurship Program at the State Department in Washington, D.C.
"Entrepreneurship" may result in new organizations or revitalize mature organizations in response to a
perceived business opportunity. A new business started by an entrepreneur is referred to as a startup
company. In recent years, the term has been extended to include social and political forms of entrepreneurial
activity.
Entrepreneurship within a firm or large organization has been referred to as intra-preneurship and may
include corporate ventures where large entities spin off subsidiary organizations.
According to Paul Reynolds, an entrepreneurship scholar

who created the Global Entrepreneurship Monitor,
"by the time they reach their retirement years, half of all working men in the United States probably have a
period of self-employment of one or more years; one in four may have engaged in self-employment for six or
more years. Participating in a new business creation is a common activity among U.S. workers over the
course of their careers." In recent years entrepreneurship has been documented by scholars such as David
Audretsch as a major driver of economic growth in both the United States and Western Europe. "As well,
entrepreneurship may be defined as the pursuit of opportunity without regard to resources currently
controlled.
Entrepreneurial activities differ substantially depending on the type of organization and creativity involved.
Entrepreneurship ranges in scale from solo projects, and even just part-time projects, to major undertakings
that create many job opportunities. Many "high value" entrepreneurial ventures seek venture capital or angel
funding (seed money) in order to raise capital for building the business. Angel investors generally seek
annualized returns of 2030% and more, as well as extensive involvement in the business. Many
organizations exist to support would-be entrepreneurs including specialized government agencies, business
incubators, science parks, and some NGOs. More recently, the term entrepreneurship has been extended to
include conceptualizations of entrepreneurship as a specific mindset (see also entrepreneurial mindset)
resulting in entrepreneurial initiatives e.g. in the form of social entrepreneurship, political entrepreneurship,
or knowledge entrepreneurship.
Since 2008, an annual "Global Entrepreneurship Week" has been announced, with the aim of "exposing
people to the benefits of entrepreneurship" and getting them to "participate in entrepreneurial-related
activities. Entrepreneurship can be defined as the propensity of mind to take calculated risks with confidence
to achieve a pre-determined business or industrial objective. That points out the risk taking ability coupled
with decision making.
The word 'entrepreneurship' typically means to undertake. It owes its origin to the western societies. But even
in the west, it has undergone changes from time to time. In the early 16th century, the term was used to
denote army leaders. In the 18lh century, it was used to denote a dealer who buys and cells goods at uncertain
prices. Towards 1961, Schumpeter, used the term innovator, for an entrepreneur. Two centuries before, the
concept of entrepreneurship was shady. It is only in the recent years that entrepreneurship has been
recognized widely all over the world like in USA, Germany, Japan and in the developing countries like ours.
Gunnar Myrdal rightly pointed out that Asian societies lack entrepreneurship not because they lack money or
22

raw materials but because of their attitudes. Till recently, in the west, the entrepreneurship is mainly an
attribute of an efficient manager. But the success achieved by entrepreneurs in developing countries
demolishes the contention that entrepreneur is a rare animal and an elusive character. In India, the definition
of 'an entrepreneur being the one who undertakes to organize, own and run a business' has been accepted in a
National Seminar on Entrepreneurship organized in Delhi in 1975. Still there has been no consensus on the
definition of entrepreneurship and qualities of entrepreneurship.
Importance of Entrepreneurship :
Entrepreneurship being an intangible factor is the moving force and development is the consequence. It has
an important role in the context of a developing nation like India which is confronted with major socio-
economic problems. Entrepreneurship can play an important role not only in the industrial sector of a country
but in the farm and service sectors also.
India is being attacked by baffling problems of over population, unemployment, under-employment, poverty
and the like. Entrepreneurship is consistently equated with the establishment and management of small
business enterprises and setting up these units is the solution to these baffling problems.
Concentration of economic power, regional imbalances, exploitation by monopolists, and many other giant
problems find their solutions in the development of small scale industry which is another name of
entrepreneurship in the developing countries. Mahatma Gandhi also asserted the same, entrepreneur ship has
not grown much in India but it is gaining importance fast. The factors which retard the success of
entrepreneurship in India are inadequate infrastructural facilities, shortage of capital, technical knowledge,
and transport, absence of cheap and good quality raw material and shortage of power etc. The government
has been taking significant steps to encourage entrepreneurship as entrepreneurship is the only solution to
various problems of developing countries. Entrepreneurship caught strong waves during the last three
decades and became a worldwide movement spreading across countries, regardless of their level of
development. Even in Europe and United States, revival of small business has been seen for more than a
decade. Constant change and innovations are simply a necessity of entrepreneurship and is becoming
essential to survive in a global economy. An American magazine 'The Economist' (1999) recently put it,
"Innovation has become the industrial religion of the late 20th Century." It is being increasingly realized that'
day's managers and businessmen need not only managerial skills but entrepreneurial skills as well.
Entrepreneurship needs to be demystified and transformed into a skill by teaching and practicing. Skill of
entrepreneurship knows how to turn an ordinary corporation, managed in a routine manner, into an
entrepreneurial organization. People within the organization can be trained to :
(i) detect the opportunities
(ii) Pursue the opportunities and rewarded
(iii) to lesson the consequences of failing.
Features of Entrepreneurship:
Entrepreneurship is the tendency of a person to organize the business of his own and to run it profitably,
using various traits like leadership, decision making, innovation, managerial caliber etc. Entrepreneurship is
a set of activities performed by an entrepreneur. In a way, entrepreneur precedes entrepreneurship. The main
features of entrepreneurship are as follow :
(i) Economic Activity:
Although classical economists like Adam Smith and Richard Cantillon and many others didn't recognize
entrepreneurship as an economic activity but since last few decades entrepreneurship is catching up and is
primarily becoming an economic function because it involves creation and operation of an enterprise.
Schumpeter's argument was that all important changes in the economy are set off by an entrepreneur and then
these changes slowly work themselves through economic system, in the form of a business cycle.
23

(ii) Innovative Activity:
According to Schumpeter, entrepreneurship is essentially a creative and an innovative activity. There are
five ways of being innovative.
(a) The introduction of a new good.
(b) The introduction of a new method of production .
(c) Opening of a new market.
(d) The conquest of a new source of supply of raw-material.
(e) The creation of a new organization of an industry.
Schumpeter's entrepreneur combines already existing materials and thereby produces something novel and
innovative. It is only at that very moment when some one actually puts together such a combination that he is
engaged in entrepreneurship. He suggests that it is very useful to study the constitutive parts of
entrepreneurship, different motives that drive the entrepreneur and the main types of innovative behavior that
entrepreneurship may result in.
Entrepreneurs tend to tackle the unknown; they do things in new and different ways' they weave old ideas
into new patterns; they offer more solutions than exercises. However, just to be innovative is not enough
unless that innovation is carried into production to benefit consumers.
(iii) A Function of High Achievement :
McClelland identified two features of entrepreneurship, (a) doing things in a different and better way; (b)
decision making under uncertainty. People having high need for achievement are more likely to succeed as
entrepreneurs. Psychological theories assert that people's capacity for entrepreneurship is decisively
influenced by the way they are socialized as children.
David McClelland stressed that entrepreneurs are highly motivated by challenging and competitive work
situations.
(iv) Creative and Purposeful Activity :
Entrepreneurship is virtually a creative, and purposeful activity. Entrepreneurship is a creative response to
the changing environment. Earning profit may not be the sole objective but introduction of something
creative and new is the purpose of entrepreneurship. The benefit of this creativity must be enjoyed by people
at large.
(v) Entrepreneurship as An Organizing Function :
As J.B. Say says : The entrepreneurs function is to combine the productive factors, to bring them together.
According to him, an entrepreneur is one, who combines the land of one, the labour of another, and capital of
yet another, and thus, produces a product. By selling the product in the market, he pays interest on capital,
rent on land, wages to labourers and what remains is his profit. Thus, J.B. Say clearly distinguishes between
the role of a capitalist as a financer and the entrepreneur as an organiser.
Marshall also advocated the significance of organisation among the services of special class of business
undertakers.
(vi) Entrepreneurship : A function of Risk-Bearing : Richard Cantillon, an Irishman living in France, defined
entrepreneur who buys factors of production with a view to sell it at uncertain prices in future. Cantillon
concerned of an entrepreneur as a bearer of non-insurable risk. Thus, Cantillon introduces elements of
direction and speculation into the function of entrepreneurship.
Entrepreneurship is a dynamic and multi-dimensional concept. It is both an art as well science. It is more an
art than science. In short, Entrepreneurship is what entrepreneurs do.
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The Importance of Entrepreneurship for Jobs, People and a Better Society
Entrepreneurs likely contributed to that morning cup of coffee
you enjoyed or the new app you downloaded to your Smartphone. But entrepreneurship does more than just
add extra conveniences to our lives. Entrepreneurs invented the traffic light, and they developed the artificial
heart. If you want to give entrepreneurship a try, learn the basics with A Young Entrepreneurs Guide to Start
and Grow a Business. Through the course, youll find entrepreneurship refers to the willingness to start and
run a business venture and the risks associated with it. Young, small and innovative companies are examples
of entrepreneurship.
Two years ago, President Barack Obama designated November as National Entrepreneurship Month because
it is such an important force in the global economy. In his research, economist David B. Audretsch found
that entrepreneurship is a vital contributor to economic growth and prosperity.
The United States and countries across the world have recognized this and are pouring more resources into
supporting entrepreneurs and teaching entrepreneurship. In 2012, the White House launched Startup America
to celebrate and accelerate the growth of entrepreneurship and pledged $2 billion over the course of five
years to support entrepreneurship in underserved communities and young companies. Enspire EU is a
project looking to foster entrepreneurship across the European Union.
Job Creation
Its tough to land a job, but entrepreneurs make it easier. Entrepreneurs create jobs for themselves, but often
they need more than just their skill set and personal initiative to transform their idea to a consumer product or
service. Take Microsoft. In 1975, Bill Gates and Paul Allen started their small software company with
dreams of changing the way we use computers. They succeeded but not without a great deal of help. Today,
Microsoft employs over 100,000 people worldwide.
Together entrepreneurial companies add even more jobs to the economy. A 2013 report by the Ewing Marion
Kauffman Foundation found that companies less than a year old with under 5 employees have created about
1 million jobs every year for the last three decades. Those with five to nine employees add about half a
million every year. The Kauffman Foundation is an organization dedicated to advancing education and
entrepreneurship through its research and initiatives. The National Employment Report found in June that
businesses with fewer than 50 employees created 45 percent of all jobs.
Are you discouraged by the job hunt? Or have a business idea you want to develop? Consider starting your
own company, but get some advice first from Become a Startup Founder.
Personal Growth
Entrepreneurship has created millions of good jobs. In a startup workplace, jobs often call for creativity and
collaboration, leading to personal development. Those exposed to entrepreneurship have higher confidence
and greater independence. Not bound by the hierarchy and restrictions of large corporations, young
entrepreneurs can take on greater responsibility, work flexible schedules and use creative solutions to
problem solve.
25

The freedom associated with entrepreneurship comes with certain challenges. Entrepreneurs often work long
hours and risk their personal assets in developing their business. Try the course 21 Critical Lessons for
Entrepreneurs if you dare to become an entrepreneur and learn to maximize the benefits of entrepreneurial
work.
Social Good
Within the last decade more and more entrepreneurs are focusing their work on resolving social problems.
Whether its poverty or climate change, these important issues deserve the efforts of these eager
entrepreneurs, and their work will benefit society not just through the jobs they create or the sleek product
they deliver, but by the people they help. Bangladeshi economist and Nobel Peace Prize winner Muhammad
Yunus used entrepreneurship to help the poor of his country.
In the 1970s, he began giving out micro-loans to basket weavers. He set up Grameen Bank in 1983 and
continued his practice of micro-lending to others in poverty. The small loans with low interest rates inspired
many recipients work their way out of poverty. Today, more than 58 other countries have used these
principles to help their poor.
Entrepreneurial development
The economy of a nation is always driven by its industrial development. Every government of developing or
developed economy concentrates on the growth of different sectors of industries. Especially small and
medium sized industries play important role for making the economy of nation sound and dynamic.
Industrial development depends on entrepreneurship of people of a nation. Greater the entrepreneurship,
higher the rate of industrial growth. Hence in all the developing countries, governmental and non-
governmental efforts are focused on entrepreneurship development.
In those days of globalization, entrepreneurship development has become integral part of national economy.
Maximum and proper utilization of available resources is possible provided we generate new entrepreneurs.
New entrepreneurs with creativity and innovative ideas are always a step ahead for standing any kind of risk
in business. Entrepreneurship development aims at making search of such persons and develop
their entrepreneurial qualities through training. In modern business, entrepreneurs are not born, but made
through the process of entrepreneurship development.
Entrepreneurship Development:
The term entrepreneurship is defined in the previous chapter of this book. It is the risk taking ability of an
individual coupled with creativity and innovative ideas. He discovers new business ideas and investment
opportunities. He materalises his ideas and opportunities in time, leading to the launching of new business
which he organises skillfully and effectively. These qualities and traits of an individual constitute
entreprenurship. This kind of entreprenership needs to be developed in the society for overall economic
development of the country. Entrepreneurship development means creating entrepreneurship attitude in
individuals through searching for prospective entrepreneur and promoting that attitude to make an individual
a real entrepreneur. It motivates to identify new business ideas and investment opportunities under changing
economic environment. It helps to transform the idea or opportunity into enterprise. Ultimately it leads to the
development of industrial sector of the economy. Thus the concept of entrepreneurship development
may be defined as follows :
Entrepreneurship development is a process through which entrepreneurial qualities are injected with
necessary motivational drives of achievements to transform business ideas or opportunities into enterprise
and to manage uncertain and risky situations of business undertakings.
The above definition highlights following express and implied features of entrepreneurship development.
1. It is a process of searching prospective entrepreneurs and their entrepreneurial qualities.
26

2. It is a process of training through which new ideas of business and investment opportunities are exposed to
these prospective entrepreneurs.
3. It is motivation for transforming idea or opportunity into business enterprise.
4. It is boosting confidence among prospective entrepreneurs by providing counseling on management,
marketing, finance and technical aspects of business enterprise.
5. It is an instrumental tool for making an individual a real entrepreneur.
6. It is a continuous and on-going activity of government and non-government organisations.
7. It aims at industrial and economic growth of the country.
Objectives of Entrepreneurship Development :
The definition and the features of entrepreneurship development outline its scope and nature. It is meant for
economic growth of the country. Hence the objectives of entrepreneurship development may be enlisted as
follows:
(1) To promote entrepreneurial qualities and traits among youth through training and expert consulting.
(2) To search and develop entrepreneurial opportunities and business ideas for potential entrepreneurs.
(3) To motivate and guide individuals for launching new business undertakings.
(4) To provide and conduct new programmes for stimulating new ventures in rural and urban areas.
(5) To provide managerial skills, marketing technicues and technical knowhow for prospective and existing
entrepreneurs
(6) To make available different kinds of project reports for new ventures.
(7) To provide information regarding different facilities, concessions, schemes sponsored by State
Government, Central Government, Institutes etc. for promoting entrepreneurship.
(8) To promote and maintain entrepreneurial culture among different sections of society in particular and in
the nation in general.
(9) To promote the development of small and medium enterprises in different sectors of economy.
(10)To generate employment and self-employment through entrepreneurial development and growth of
small-scale industries.
(11) To contribute for economic and industrial development of the country through first-generation
entrepreneurs.
All these objectives of entrepreneurial development highlight the importance of entrepreneurial development
in national economy.
Process of Entrepreneurial Development :
Entrepreneurial Development is an important activity in the economic field of a nation. Hence state and
central governments put all efforts for Entrepreneurial Development at all levels. Different programmes are
organised and sponsored from village level to national level. Of course training is the core activity under
Entrepreneurial Development. It includes promotional, supportive and developmental programmes. But the
process of Entrepreneurial Development is subdivided into three major stages as follows:
1. Pre-training stage:
Under the first stage of the process, the prepatory activities for conducting Entrepreneurial Development
training programmes are undertaken. Hence it is termed as pre-training stage of the process. It includes
following activities:
(a) Planning Entrepreneurial Development training programmes required by local needs.
(b) Preparing training manual and circulars.
(c) Making proper publicity of the programmes for attracting potential entrepreneurs.
(d) Providing information and guidance to the interested individuals.
27

(e) Chalk out details of the training programmes.
(f) Calling applications, making the scrutiny and selection of applicants for the training.
(g) Organize necessary tools and equipments for training purposes.
(h) Communicating with the applicants for attending the training.
(i) Invite expert resource persons for the training programmes.
The pre-training activities are to be organised in systematic manner for the
success of the training programmes.
2. The training stage :
The second stage of the process is conducting the training programmes as per chedule. The training
programmes are conducted especially at local level which may be village, Taluka or District level.
Government Agencies and non-government organisations organise such kind of Entrepreneurial
Development training programmes. The District Industries Centre or Maharashtra Centre for
Entrepreneurship Development are government agencies which organise the Entrepreneurship Development
training programmes in Maharashtra. Of course some reasonable fees are charged, against which training
literature, printed manual, refreshment, meals etc. are supplied to the participants. Along with the above
activities, necessary supportive and subsidiary activitiesare also organised under this stage. Practicals,
demonstrations and visits to factorysites are also organised under the training programmes. This stage
attempts to make an individual an entrepreneur. Hence it is the most important stage in the process of
Entrepreneurship Development.

3. Post Training Stage :
Entrepreneurship Development aims at making prospective entrepreneur a real one and real entrepreneur into
a successful one. It means that the object of Entrepreneurship Development is not only making entrepreneur,
but making him successful entrepreneur. It is equally essential to sustain the development of
entrepreneurship by making the existing entrepreneurs successful. From that point of view, post-training
stage is equally important. Under the stage, the follow-up and nursing activities are undertaken. Searching
prospective entrepreneurs and to train them and make them real entrepreneur is a continuous process of
Entrepreneurship Development. Further the new entrepreneur with his new business must sustain himself
with the business under adverse and uncertain situations also. Post-training activity decides the rate of
success of the Entrepreneurship Development programmes.
Under this stage, following activities are conducted :
(i) Follow-up activities to transform trained prospective entrepreneurs into real
entrepreneurs.
(ii) Follow-up for launching a new business or undertaking by the participants of
the training programme.
(iii) Assisting the prospective entrepreneurs to prepare the project report and see
that it is approved by the concerned authorities.
(iv) Guiding the prospective entrepreneurs to prepare the necessary documents,
comply with the legal and technical formalities for starting a business.

Entrepreneurial Motivation:
It is very interesting to know what motivates people to go into business. Why do they become ready to accept
the risk? Several research studies have been con-ducted worldwide to identify the factors that inspire the
people to undertake business activities. Though, to earn money is an important motivating force, people do
not go into business and become entrepreneurs solely to make money. There are indeed several other factors
28

that motivate people to become entrepreneurs. Lets study what is exactly meant by entrepreneurial
motivation and what factors motivate people to become entrepreneurs. The term motivation has been
derived from the word motive which means an inner state of our mind that moves or activates or energizes
or directs our behaviour towards our goal. Thus, motivation is an inner spirit that activates the persons
behaviour towards the goals. Motivation may be defined as the process that motivates a person into
action and induces him to continue the course of action for the achievement of goals.
Michael Julius defines motivation as the act of stimulating someone or oneself to get a desired course of
action.
Motive, behaviour and goal are regarded as three basic elements of the
process of motivation.
The motives that stimulate the people to undertake entrepreneurial activities may be called the
entrepreneurial motivation.
Entrepreneurship is a very risky proposition but even then some people take it up, because, there are strong
motives or motivating factors that stimulate them to do so. The behavioral theories propounded by
behavioural scientists explain what motivates an individual to behave entrepreneurially. Particularly
Maslows Need Hier-archy Theory and David McClellands Achievement Motivation Theory are most rel-
evant to the entrepreneurial behaviour of an individual Entrepreneurial Motivation:
There are several different types of motivation, however, particularly the follow-ing four types of motives
stimulate the people to become entrepreneurs: Lets discuss them in brief.

1) Achievement Motivation: (n-Arc)
The need for achievement plays an important role in making an entrepreneur as successful. It is an inner
spirit that activates an entrepreneur to strive for success. David McClelland has developed Achievement
Motivation Theory. According to him, an individuals need for achievement (n-Ach) refers to the need for
personal accom-plishment. It is the drive that excels the people to success. People with high achieve-ment
motive take up the risk and want to win. McClelland argues that the following three types of needs may
simultaneously be acting on an individual:
i) Need for Affiliation (n-Aff)
ii) Need for Power (n-Pwr), and
iii) Need for Achievement (n-Ach)
According to him, in case of an entrepreneur, the high need for achievement is found dominating one. In his
view, the people having high need for achievement are more likely to succeed as entrepreneurs. People with
high achievement motive are not influenced by money rewards or profit only, but they strive to satisfy their
inner drives. Profit is only an external incentive for them. McClellands theory gives appropriate answer to
the questions: Why some people leave very cozy jobs to start their own enterprises which involves an
element of risk? Why some merchants who are earning well, put their hard-earned money to stake in
manufacturing? Why technologists and engineers start their own industry instead of going for safe job? All
these persons have high achievement motivation. They are unusually creative and they have high propensity
of risk-taking capacity. They want to take personal responsibility. They tend to persist in the face of adver-
sity and take moderate risks and like to know the results of their efforts.

2) Power Motivation (n-Pur).
McClelland defines the power motivation as a desire to affect the behaviour of individuals and to control and
manipulate the surroundings. This means ones desire to dominate and influence others by using physical
29

objects and actions. Some people have drive for upward movement. They enjoy position, prestige and
gaining influence over others.
This desire for power motivates people to establish human organizations and dictate them. This motive is so
intense that some people become big business leaders and create their own empire.
3) Affiliation Motivation (n-Aff).
This refers to the need to establish and maintain friendly and warm relations with others. People as social
animal desire friendship and association. They prefer co-operation rather than competition. People working
in a group get more energy to undertake new responsibilities. The moral support of the group (may be
relatives, friends, work group or any other social group) enhances the level of confidence and people prepare
their mindset to accept the risk.
4) Extension Motivation:
Being sympathetic to others and helping others to fulfill their ambitions is called extension motivation. The
entrepreneurs with extension motivation help others while doing their own business. They use their
competence and brilliance for the benefit of society. They always feel that their happiness lies in the
happiness and progress of others.
The Entrepreneurial Motivating Factors:
Several research studies have been conducted in India to identify the factors that inspire entrepreneurs. R. A.
Sharma (1980) has done pioneering study in this regard. Studies done by BEVVN Murthy (1986) and P. N.
Misra (1987) are also prominent in identifying various motivating factors that prompted entrepreneurs to
undertake business activities. K. Sadhak (1989) has also contributed towards de-tecting the factors that
motivated entrepreneurs.
The motivating factors reported by above mentioned researchers are more or less similar. All these factors
have been summed up as follows.
1) Educational background / knowledge:
The formal technical knowledge acquired through courses offered by renowned educational institutions is
found to have motivated entrepreneurs to enter into industry. The example of Mrs. Kiran Muzumdar-Shaw
can be cited here. She did her graduation in Zoology and post graduation in brewing and malting, which
promptedher to establish Biocon Ltd. The Company started with the seed capital of just Rs.10,000/- is now a
multi-billion dollar company.
2) Occupational / Business experience:
The occupational background or enough business experience in a particular line of business motivates the
people to become entrepreneurs.
3) Desire to do something new:
Creativity is the outcome of dynamic human brain. Some people always strive to do something new and
innovative. The strong desire to do something new and independent in life prompts entrepreneurs to be in the
business.
4) Family background:
The entrepreneurial activities of fore fathers prompt the next generations to take up business activities. In
India, the business background of family has motivated the people to enter into business. For example, Tatas,
Birlas , Ambanis , Kotaks , Kirloskars etc.
5) Government assistance and support:
Easy financial assistance from institutional sources and many other kind of support prompt some people to
undertake business activities. The assistance and support includes the following -Seed capital assistance.
Easy availability of business loan and subsidy on it.
Machinery on hire purchase.
30

Leasing scheme.
Factoring scheme.
Availability of venture capital.
Tax concessions.
Export assistance.
Training in technical and marketing aspects.
Accommodation in Industrial Estates (such as sufficient open space / plot or factory shade etc.) and above
all, the positive attitude of the government to help new entrepreneurs.
6) Encouragement from big business houses:
The success stories of big business also motivate the people to become entre-preneurs. Not only that, some
big business houses stimulate entrepreneurs to take up the production of allied or ancillary products. For
example, automobile industry has motivated many medium and small entrepreneurs to undertake the
production of halogen bulbs, horns and other accessories of vehicles.
7) Promising demand for the product / service:
Ever increasing or heavy demand for a particular product or service attracts people towards production of
such product / service. There is an expanding market for some goods or services, the entrepreneurs find their
ways in such areas. Re-cently it was found that there is increasing demand for fitness service, hence a
number of new entrepreneurs opened up their fitness centres in big cities as well as in small towns.



8) Unsound / weak units available at a cheap price.
When some ailing industrial unit (financially weak or sick unit) is available at cheap price, this attracts the
entrepreneurs to take up such unit and revive it. Interesting to note here that, Mr. Dhirubhai Ambani started
production of cloth by purchasing a closed textile mill at Naroda. Further, Vidya Murkumbi and Narendra
Murkumbi bought some ailing sugar mills and turned them around.
9) Availability of labour and raw material.
Availability of required type and grade of labour and material at competitive rates motivate people to
undertake business activities. In Sivkashi, easy availability of labour comparatively at cheaper rates has
motivated many entrepreneurs to start their business there. Calendar printing, match-box making and
crackers-making businesses have flourished there. The labour cost behind these products is very
less due to cheap wage rates there.
10) Other factors.
A) Ambitious factors.
a)To make money. b)To continue family business. c)To secure self-employment. d)To fulfill desire of self /
wife / parents. e)To gain social prestige. f) Making of descent living. g)Self-employment of children.
h)Desire to do something creative.
B) Compelling factors.
a) Unemployment.
b) Dissatisfaction with the job so far held.
c) Make use of technical or professional skills.
d) Revival of sick unit started by father.
e) Make use of idle or excess funds.
f) Maintenance of large family.
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C) Facilitating factors.
a) Success stories of other entrepreneurs.
b) Experience of business.
c) Inherited property.
d) Encouragement by family member / friends / relatives etc
Problems and Measures of Entrepreneurship Development :
The need of Entrepreneurship Development was highly underlined after the independence. The Central
Government highlighted the significance of Entrepreneurship Development in its first industrial policy and
announced its policy on Entrepreneurship Development. Further it is also stressed in all the subsequent
industrial policies of the government. Accordingly central and state governments had undertaken the
campaign of Entrepreneurship Development all over the country for more than 60 years. But unfortunately it
has not gained substantial success. We find certain problems and drawbacks in the process and policies of
Entrepreneurship Development which may be listed as follows:
(1) Lack of co-ordination in the Entrepreneurship Development organised by different institutes and
agencies.
(2) Unwarranted number of institutes for Entrepreneurship Development leading to confusion about their
area of functioning.
(3) Lack of priorities of requirements for a new entrepreneur.
(4) Lack of experts for guiding and counselling the prospective entrepreneurs.
(5) Lack of long-term Entrepreneurship Development of the state and central government.
(6) Lack of commitment on the part of Entrepreneurship Development institutes and state government.
(7) Non-availability and lack of resources for Entrepreneurship Development training programmes.
(8) Lack of follow-up the participants and Entrepreneurship Development training programmes.
(9) Low rate of success of Entrepreneurship Development programmes.
(10) Increasing number of sick units from small-scale industries sector.
Remedial Measures :
The problems of Entrepreneurship Development need to be attended and be solved without delay. The state
government and the central government has adopted certain remedial measures for doing away the problems.
Some important measures are suggested as follows:
1. Effective co-ordination in the activities of Entrepreneurship Development is essential. The state
government shall initiate in this regard for effective co-ordination.
2. Single window scheme shall be introduced for prospective entrepreneurs.
3. Priorities of requirements for launching a business by new or prospective entrepreneurs shall be fixed.
4. Experts of particular area be appointed or be invited instead of government officials.
5. Long term policy of Entrepreneurship Development be formulated by the central as well as by the state
governments.
6. Nursing activities for newly started business be initiated by the Entrepreneurship Development institutes to
sustain the rate of successful entrepreneurs.
7. Budgetary provision and allocation of more funds by the state and central government is essential.
8. Post training follow-up need to be attended more meticulously.
9. Rehabilitation of SSI sick units be undertaken and more facilities be granted to new or first-generation
entrepreneurs.
32

10. Differential schemes of Entrepreneurship Development programmes be introduced at district level viz.
Entrepreneurship Development programmes for engineering graduates, programmes for science graduates,
programmes for arts graduates, programmes for under-graduates etc.
The above measures if implemented seriously will certainly accelerate rate of Entrepreneurship
Development.
Institutions for Entrepreneurship Development in india :
The state government and the central governments have established number of institutions for
entrepreneurship development. These institutions undertakes the activities of Entrepreneurship Development
at different level i.e. from local level to national level. Some of the important institutions are as follows:
National Institute for Entrepreneurship and Small Business Development:

1.Central Government has established NIESBD in 1983 under the Societies Act.
The headquarter of the institute is at New-Delhi. The main object of the institute is to co-ordinate and to
supervise the different activities of Entrepreneurship Development for small business and SSI units. It also
undertakes research work for searching out new ideas of business and new investment opportunities. It runs
documentation centre for Entrepreneurship Development purpose at national level. It is the apex institution
of Entrepreneurship Development.
Major functions of the institution are given below:
(1) To improve the effectiveness of Entrepreneurship Development programmes at state and central level.
(2) To accelerate the process of Entrepreneurship Development at different levels in the whole nation.
(3) To organise training programmes for Entrepreneurship Development Trainers.
(4) To undertake research for exploring new ideas of business and new investment opportunities.
(5) To co-ordinate and supervise the different Entrepreneurship Development programmes at national and
state level.
(6) To sponsor Entrepreneurship Development programmes at national and international level.
(7) To function as a national agency of Entrepreneurship Development for international purposes.
(8) To accelerate the growth of small business through Entrepreneurship Development programmes.
(9) To promote entrepreneurial culture in the country. The institute functions through its executive council.
The Industries Minister of the central govt. is ex-officio Chairman of the council and the state minister for
industries of the central govt. is ex-officio vice-chairman of the council. The institute is ex-officio secretariat
for National Entrepreneurship Development Board (NEDB) of the central govt. It also represents central
government for Entrepreneurship Development activity of the nation.

Maharashtra State Centre for Entrepreneurship Development MCED:Aurangabad.
The centre was established in 1988 by the state of Maharashtra. The Karandikar Committee was seen
appointed to suggest recommendations for accelerating the process of Entrepreneurship Development in the
state which recommended the establishment of this centre. The headquarter of the centre is at Aurangabad.
The main object of the centre is to accelerate Entrepreneurship Development process and make it more broad
based in the state. The centre has regional offices at Mumbai, Pune, Nagpur, Amravati, Nasik, Aurangabad
and Kolhapur. Apart from these offices, it has deputed one project officer at each District Industries Centre
(DIC) in the state.
The objectives of the centre may be stated as follows:
(1) To transform the mindset of Marathi Community for Entrepreneurship Development and inject
Entrepreneurial values in the community.
33

(2) To search and identify the first-generation prospective Entrepreneur from the Marathi community and
transform them into real Entrepreneur.
(3) To stimulate urban and rural youth for making them entrepreneurs.
(4) To organise training programmes for prospective entrepreneurs from Marathi community.
(5) To provide consultancy services for launching business to aspiring youth of the Marathi society.
(6) To inject and promote Entrepreneurial culture in Marathi community of the state.
(7) To create Entrepreneurial atmosphere by conducting action programmes in the state.
(8) To promote managerial skills of existing entrepreneurs of small-scale and medium scale industries sector.
(9) To make Entrepreneurial generation of successful young entrepreneurs through scientific training,
counselling and demonstration.
(10) To accelerate the rate of growth of SSI, medium and cottage industries units for strengthening the
economy of the state.
It performs different activities and conducts Entrepreneurship Development programmes for fulfilling its
above objectives. It organises
(1) Entrepreneurship Development programmes :EDP
(2) Development programmes for self employment DPSE.
(3) Vocational Training Programmes :VTP.
(4) Management Development Programmes :MDP
(5) EDP for women
(6) EDP for youth workshop on project reports
(7) Trainers Training programmes
(8) Stimulation Training programmes
(9)Entrepreneurs Literary Conventions
(10) New Business research etc for ED It provides
library services, new-paper cuttings facilities, counselling for project report, technical guidance, marketing
techniques etc. Thus the role of MCED is highly appreciable for Entrepreneurship Development in the state.
Entrepreneurship Development Institute of India: EDII, Ahemedabad.
The institute was established in 1983 with its headquarter at Ahmedabad. It is promoted by IDBI, ICICI,
IFCI and SBI jointly. Initially the institute was given the status of Apex institute for Entrepreneurship
Development in India. But later on with establishment of NIESBUD, the central government granted the
status of Apex Institution of ED TO NIESBUD. The institute aims at research activities, training
programmes and structuring institutional network in the field of Entrepreneurship Development. Promotion
of Entrepreneurship Development in industrially under developed area and under developed rural areas is the
major thrust of functioning of the institute.
The major objectives of the institute are given below:
(1) To enlarge the supply of entrepreneurs for accelerating the industrial development of the country.
(2) To undertaken entrepreneurship development activities in less-developed rural area for uplift of rural
area.
(3) To develop small and medium enterprise sector, making it more broad based and distributed over regions.
(4) To generate greater potential of employment for rural youth especially.
(5) To provide self-employment to educate and less educated young boys and girls coming out or dropped
out from schools and colleges, through Entrepreneurship Development programmes.
(6) To accelerate the growth of small-scale industries (SSI) and improve their performance through trained
entrepreneur.
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National Institute of Small Industries Extensions Training : NISIET, Hydrabad:
This national institute was set up by the Central Government in 1962. It is autonomous body registered under
the Societies Registration Act. The headquarter of the institute is at Hyderabad. The main activity of the
institute is to organize training programmes for the expansion and growth of SSI sector of the country. The
training programmes are conducted especially for the officials of the central and state government who are
deputed for the developmental programmes of SSI units. The important objectives of the institute are as
follows:
(1) To conduct training programmes for Government Officers who are entrusted with the implementation of
Development schemes of SSI sector.
(2) To organise management development programmes for enriching managerial skill of SSI Officers.
(3) To organise stimulation and training programmes on Area Development for the growth of rural and
cottage industries.
(4) To conduct research activities for accelerating the development of SSI sector. The institute undertakes
different kinds of training programmes for fulfillment of above objectives. It conducts intensive short term
courses on technical aspects of industrial management, financial management, production area, cost
management, personal management etc. for the government officials working in SSI sector of the country.
Entrepreneurship Development Programme in India :
Pre-Independence Period :
Entrepreneurship Development had its origin in the ancient history of India. Sindhu Civilisation, being one of
oldest civilization of India, highlighted many products and things indicating entrepreneurship and
craftsmanship of local people. But it was very limited in nature. Mourya regime of 4
th
and 5
th
century B.C.
registered excellent progress of Entrepreneurship Development in field of weaving, metal, gold ornaments,
wood carving, leather products etc. The process of Entrepreneurship Development was slow until the British
rulers came to India. Muslims, Mugals and Maratha Emperors gave protection to handicraft and cottage
industries during their regions, leading to substantial development of Entrepreneurship in local people. The
protection policies of the emperors gave a kind of stimulus and support for Entrepreneurship development in
the country.
British rulers came in India and they started governing economic and political affairs of India through
political agents. The protection policies towards handicraft, small and cottage industries was liberalized and
further abandoned by the British rulers. They treated India as the market for British products, high taxes were
levied on handicrafts and SSI product by the British. The British rulers levied taxes on 235 selected products
heavily and 400% excise duty was also levied on exports to western countries. It ultimately affected very
adversely on handicraft and small industries sector. The British intentionally adopted such a policy which
had interrupted and disturbed the process of entrepreneurship development in India.
In spite of negative policies of the British Rules, 19
th
Century was born for entrepreneurship development.
The first textile mill was set up in 1851 at Mumbai. The first coal mine was started in 1820 at Ranigunj. The
first Jute mill was set up in 1854 in Bengal. Gujrathi, Parshi and Bengali people came forward and started
number of mills and industries. It had given momentum to the entrepreneurship development against the
negative policies of the British Rulers. By the end of the century, there were 194 textile mills, 286 coal mines
and 36 Jute mills in India. Many new companies and industries were established in almost all sectors of the
economy. It was the strong reaction of the people of India against the British rules and their
policies. It was really a notable development of entrepreneurship.
The first half of the 20
th
century highly accelerated the process of Entrepreneurship Development on the eve
of the notable historic events. First world war, world recession, second world war, Swadeshi Movement, Quit
India Movement, Independence of the country, Appointment of Fiscal Commission etc. were events
35

which generated greater momentum for entrepreneurship development.
Post-Independence Period :
The government of free India declared its commitment to accelerate the rate of development of the economy.
The central government in its first industrial policy (1948) had given priority for Entrepreneurship
Development in express statements. Even in all its subsequent Industrial Policies, special stress was given on
Entrepreneurship Development. Accordingly, the state government also chalked out the policies for
Entrepreneurship Development and further they established institutional network for it. Entrepreneurship
Development Programmes (EDP) were organized at different levels. The Review of EDP in India is taken in
the following paragraphs.
1) Entrepreneurship Development Programmes at National Level:
Central government, as per its industrial policies set up the institutional network of Entrepreneurship
Development institutes at national level. These institutes were given the responsibility of undertaking
Entrepreneurship Development Programmes at national level. NIESBUD, (New Delhi) EDII (Ahamdabad),
NISIET (Hydrabad), SIDO, KVIB, TCO, SISI, REDI, SIDBI, IIC are some of the national institutes
shouldering the responsibility of Entrepreneurship Development Programmes successfully. The different
kinds of Entrepreneurship Development programmes viz. Training programmes, Orientation programmes,
vocational guidance, Management Development, Trainees training, Officers training etc. are organised by
these institutes. Most of the institutes conduct research activities for Entrepreneurship development
programmes. These Entrepreneurship Development programmes contributed much for the growth of small,
medium and cottage industries of India.
2) Entrepreneurship Development Programmes at State Level:
State governments also set up many institutes for Entrepreneurship Development Programmes purposes.
Maharashtra Centre for Entrepreneurship Development (MCED) is one of the institute working for
Entrepreneurship Development in Maharashtra. The state level institutes organise Entrepreneurship
Development as per requirement of the state. They conduct training programmes for youth to identify
prospective entrepreneurs. Necessary services and facilities with managerial and technical guidance are
provided to the prospective entrepreneurs. Even consultancy services are provided for existing entrepreneurs.
3) Entrepreneurship Development Programmes at District and Local Level:
State and central institutes sponsor different kinds of Entrepreneurship Development Programmes at District
and Taluka levels. As India is a country of villages, training programmes for villages are also organised.
Certain programmes are developed for rural youth including men & women. Especially training programmes
for handicrafts and cottage industries are conducted at village level. District Industries Centers are assigned
Entrepreneurship Development Programmes and activities in the districts.
4) Entrepreneurship Development Programmes by NGOs:
Non-government organisations (NGOs) are also playing appreciable role for organizing Entrepreneurship
Development Programmes. These NGOs conduct Entrepreneurship Development Programmes at all levels
i.e. from national to local level. Especially those NGOs which are closely related with business, industries
and commerce, had taken greater initiatives for Entrepreneurship Development Programmes. Indian
Chamber of Commerce and Industries, National Youth Entrepreneurs Organisation, Indian Women
Entrepreneurs Organisation, Self Employed Women Association, Maharashtra Women Entrepreneurs
Organisation, Rotary clubs, Educational Institutes, Charitable Trusts etc. organize different kinds
Entrepreneurship Development Programmes. Sometimes it may be in collaboration
with government organisation also. The central and state governments had made substantial financial
provisions for Entrepreneurship Development Programmes in all five year plans. The Central government
has set up National Entrepreneurship Development Board for formulating national policy on
Entrepreneurship Development. The growth of SSI units and companies clearly indicates the development of
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entrepreneurship. The number of SSI units was about one lakh in 1951, it increased to 118.53 units in 2004-
05. The number of registered companies was about 28,500 in 1951, now in 2005-06 it increased to more than
7.00 lakhs.

What is an entrepreneur?
It is defined as an individual who organizes or operates a business or businesses. Credit for coining the term
entrepreneur generally goes to the French economist Jean-Baptiste Say, but in fact the Irish-French
economist Richard Cantillon defined it first in his Essai sur la Nature du Commerce en Gnral, or Essay on
the Nature of Trade in General, a book William Stanley Jevons considered the "cradle of political economy"
Say and Cantillon used the term differently, however. Cantillon biographer Anthony Breer notes that
Cantillon saw the entrepreneur as a risk-taker while Say considered the entrepreneur a "planner"
Cantillon defined the term as a person who pays a certain price for a product and resells it at an uncertain
price: "making decisions about obtaining and using the resources while consequently admitting the risk of
enterprise." The word first appeared in the French dictionary entitled "Dictionnaire Universel de Commerce"
compiled by Jacques des Bruslons and published in 1723.
A Chronological List of the Definition of 'Entrepreneur'
1734: Richard Cantillon: Entrepreneurs are non-fixed income earners who pay known costs of
production but earn uncertain incomes,
1803: Jean-Baptiste Say: An entrepreneur is an economic agent who unites all means of production-
land of one, the labour of another and the capital of yet another and thus produces a product. By
selling the product in the market he pays rent of land, wages to labour, interest on capital and what
remains is his profit. He shifts economic resources out of an area of lower and into an area of higher
productivity and greater yield.
1934: Schumpeter: Entrepreneurs are innovators who use a process of shattering the status quo of the
existing products and services, to set up new products, new services.
1961: David McClelland: An entrepreneur is a person with a high need for achievement. He is
energetic and a moderate risk taker.
1964: Peter Drucker: An entrepreneur searches for change, responds to it and exploits opportunities.
Innovation is a specific tool of an entrepreneur hence an effective entrepreneur converts a source into
a resource.
1971: Kilby: Emphasizes the role of an imitator entrepreneur who does not innovate but imitates
technologies innovated by others. Are very important in developing economies.
1975: Albert Shapero: Entrepreneurs take initiative, accept risk of failure and have an internal locus
of control.
2013: Ronald May: An Entrepreneur is someone who commercializes his or her innovation.
The appellation today implies a bootstrap operation and some degree of both innovation and financial risk.
Qualities and skilles of Successful Entrepreneurs :
What makes entrepreneurs successful in their venture? Different experts have identified a number of
qualities of successful entrepreneurs; some of these important qualities have been described below-.
1. Ambition :
Successful entrepreneurs have high ambitions about their venture. They want to achieve high goals in
business. Due to this high ambition or high achievement motive, they are able to overcome the obstacles in
their business, turn misfortunes into fortunes, suppress anxieties and find out new ways and means.
2. Creativity:
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Successful entrepreneurs are creative or innovative in their task. They do new things, manufacture new
goods, find new sources of materials, use new methods of production, search new markets and so on. They
do not invent new things but use these inventions for producing new goods and services. Tata Motors Nano
car shows the innovativeness of Ratan Tata.
3. Self-confidence :
Successful entrepreneurs have confidence in their skills and abilities. They are sure about success in their
business. They do not hesitate to launch new products, expand and diversify their business. They are
confident of overcoming any unanticipated problem and survive in the adverse conditions.
4. Foresight:
The successful entrepreneurs have a good foresight. They forecast the future business environment i.e. how
will be the likes and dislikes of customers, what will be the state of technology and prepare a plan of action
accordingly. Foresight helps them to cope up with future environment effectively and stay ahead of others in
the industry. Ratan Tata started manufacturing of consumer cars after anticipating a sharp decline in the
demand of heavy commercial vehicles.
5. Hard work :
If the entrepreneurs desire to succeed in their enterprise, they should be prepared to work hard. They should
work untiredly for hours together, be ready to do any kind of work in their business. They should always
remember that hard work fetches good fruits.
6. Emotional balance
There are always ups and downs in the business. Sometimes you make profit; on other times you incur loss.
But if you wish to succeed in business, you should control emotions. Successful entrepreneurs neither get
carried away due to huge profit nor loose their hearts due to a heavy loss. They maintain emotional balance.
They treat these situations as normal features of business and remain calm and quiet.

7.Decision-making ability :
The successful entrepreneurs have a good decision making ability. They make decisions promptly and
accurately. The decision-making ability helps them to solve the business problems satisfactorily and exploit
the opportunities. Decision-making is an important function of entrepreneurs.
8. Courtesy :
The successful entrepreneurs deal with the customers, vendors, employees, government officials and the
general public in a courteous manner. Courtesy and modesty leads them to success.
9. Communication skill :
Communication skill is another important quality of successful entrepreneurs. With good communication
skill entrepreneurs are able to convince effectively their ideas, thoughts and job requirements to the
employees and get the work done in a better manner.
10. Good character :
The character of an entrepreneur has become an important quality in modern business. Today no enterprise
can survive for a long time by following unethical and fraudulent practices. Character is the result of cultural
values.
11. Motivational ability :
The successful entrepreneurs have ability to motivate the employees. They can extract best work from them
and achieve high goals. Motivational ability is also required for getting the expected response from the
customers, vendors and the government. Consider again Ratan Tata, who ably
motivated the vendors to supply components at a lower price for the Nano car project.
12. Opportunist :
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The successful entrepreneurs are opportunists. They seek opportunities and exploit them. They convert
problems into opportunities, i.e. polluted water may be a problem for the general public but it is a golden
opportunity for the entrepreneur to treat the water and provide packaged pure drinking water.
13. Patience :
The successful entrepreneurs have a lot of patience. They are not affected by adverse situations like
temporary failure, low consumer response, labour problems etc. They continue to work hard and do not run
away from the business. They are confident of achieving success after some initial period.

Entrepreneurship Education
Entrepreneurship is a key driver of our economy. Wealth and a high majority of jobs are created by small
businesses started by entrepreneurially minded individuals, many of whom go on to create big businesses.
People exposed to entrepreneurship frequently express that they have more opportunity to exercise creative
freedoms, higher self esteem, and an overall greater sense of control over their own lives. As a result, many
experienced business people political leaders, economists, and educators believe that fostering a robust
entrepreneurial culture will maximize individual and collective economic and social success on a local,
national, and global scale. It is with this in mind that the National Standards for Entrepreneurship Education
were developed: to prepare youth and adults to succeed in an entrepreneurial economy.
Entrepreneurship education is a lifelong learning process, starting as early as elementary school and
progressing through all levels of education, including adult education. The Standards and their supporting
Performance Indicators are a framework for teachers to use in building appropriate objectives, learning
activities, and assessments for their target audience. Using this framework, students will have: progressively
more challenging educational activities; experiences that will enable them to develop the insight needed to
discover and create entrepreneurial opportunities; and the expertise to successfully start and manage their
own businesses to take advantage of these opportunities.
Entrepreneurship is the tendency of a person to organize the business of his own and to run it profitably,
using all the qualities of leadership, decisions making and managerial caliber etc. The term entrepreneur is
often used interchangeably with entrepreneurship. But conceptually they are different.
In a way, entrepreneur precedes entrepreneurship. It is concerned with the development and co-ordination of
entrepreneurial functions.
Entrepreneurship is an abstraction and entrepreneurs are tangible persons. Well designed and controlled
research studies on entrepreneurship are very few. If we view entrepreneurship as opposed to management, it
becomes still more difficult to define entrepreneurship.
Entrepreneurship is a role played by or the task performed by the entrepreneur. The central task of the
entrepreneur is to take moderate risk and invest money to earn profits by exploiting an opportunity. For this
he must possess far-sightedness to perceive an opportunity so that he can exploit it well in time. Although an
entrepreneur has to perform diverse functions yet he must manifest many qualities in himself to be a good
entrepreneur.
How you manage the employee motivation?

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As an entrepreneur or business owner, you are quite likely to face the all important task of motivating
employees. Whether you only have one personal assistant or a team of 100 employees, you must master the
skill of employee motivation; its vital for ensuring the growth and success of your business.
So what is motivation?
The following quote sums it up nicely: That which makes a person act in a particular way; an inner
impulse
Anyone who is in a managerial position and is responsible for the day to day management of a team plays a
key role in influencing their employees level of motivation.
Here are 5 key points you want to consider when tackling the complex, but vital task of employee
motivation:
1) One size does not fit all Individuals have specific needs and requirements. Some may be motivated by
career growth and ambition and others are motivated when they are able to satisfy the most basic of needs;
providing food and shelter for their families. You, as a manager and leader, need to pay attention to each
individuals specific needs. Yes, its more work, but imperative to ensure success of an employee motivation
policy. Take time to listen to your team and try to understand what motivates them, both in and out of work.
2) The Power of Appraisals You need to ensure regular feedback. As a manager, you time is, literally,
money; however, you must make time to sit down with subordinates to discuss performance. Some
companies have formal performance appraisal policies and procedures which require managers to meet with
each individual on their team on a regular basis; this is great if possible but even informal meeting and chats
can serve the purpose of increasing motivation. These meetings are the perfect time to provide positive
reinforcement for a job well done and also to discuss possible weaknesses.
3) Invest in Training and Development offering employees the opportunity to learn new skills that
will help them to advance in their careers is a great way to motivate your employees. Whether it be onsite or
offsite training initiatives, effective and focused training can lead to high returns for both company and
employee. When a company has taken the time and effort to train their employee and has spent money in
organising training courses, the employee feels valued.
4) Empower your team Empowerment is a key aspect of motivation. By encouraging contribution and
input from your employees, you make them feel valued and important; if you then add to this by allowing
them to make their own decisions, the results are even more powerful. Start off by delegating tasks you dont
need to accomplish yourself; let them take charge of easier tasks to begin with and as they gain confidence,
hand over more important and sensitive tasks.
5) Recognise their Achievement Its important to mention that this recognition does not have to be
financial. Yes, money does motivate, but it tends to be a short term motivator. Try simpler and cheaper
methods such as handwritten notes, verbal recognition in front of peers, or a simple thank you for a job well
done; youll be amazed at how effective these techniques can be for achieving short and long term
motivation.
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I could go on for hours about the importance of employee motivation. Theres no doubt that a motivated
workforce will always outperform one that isnt; the above points barely scratch the surface of what you can
achieve by applying motivational techniques to your management style; however, they will certainly help
you on your way to increasing your teams output.
business tangibles like amount of sales, investment returns, year-end targets and the like, your teams drive,
motivation, and morale is tougher to measure. It is widely known and accepted that you, as a leader, must be able to tap
into your teams peak performance and consistently harvest that for your business to start achieving its goals.
Management heads todays are becoming aware that unhappy employees tend to be less productive, which is
why more and more progressive companies today pour resources into securing competitive and attractive
packages for their teams. In turn, they push their personnel to achieve nothing less than 100% of the target,
thus commit themselves to building and maintaining high-quality, efficient teams. Giving your team the right
motivation can help you get the results you expect. At the same time, your team will enjoy having healthy
competition and will foster a happy culture and environment.
How you make motivational environment for your team to greatness?
Motivation is the drive of and entrepreneur to maintain an entrepreneurial spirit in all their actions.
Motivation implies an inner stat that causes a person to act towards the attainment of goals. It is an
inspirational process of steering an individuals drives and actions towards goals. It causes a chain reaction.
Motivation is an internal psychological feeling which produces goal directed behavior. It is an ongoing
process because human needs are never completely satisfied. Motivation is dynamic force setting a person
into motion or action. The word motivation is derived from motive which is defined as an active form of a
desire, craving or needs and desires effect of change the behavior which becomes goal oriented.
1. Lead by example.
In order to have a productive team, you must be a productive manager. Role-modeling what the employees
are expected to do creates great impact not only on the team but on the work environment itself. It will also
generate enthusiasm and will inspire everybody to work. Sometimes its simply because your employees are
looking up to you. Small things like being on time or being energetic may affect your employee most.
However, role modeling is sometimes easily overlooked. Be careful with what you do, how you say things,
and what you say.

2. Proactively encourage.
Very often, a simple pat on the back can highly reassure your employees especially when it is crunch time.
Attending to your employees concern proactively will motivate them to do their work effectively since they
feel that their emotions are being valued by you as their manager. You may also remind them to take a break,
show how their daily tasks impact the organizations goal, give them immediate feedback, and set
expectations. Doing this increases their eagerness to do their job. It is known that 53% of fully engaged
employees state that they have learned a lot from their boss.
3. Coach in private, praise in public.
Regular feedback and reinforcement makes employees feel positive. But make sure that you do it in the right
place. If you correct an employee in front of everybody, chances are they may feel disheartened and
demoralized. It is imperative to coach your employees in private to avoid dejection from their end.
Meanwhile, praise them in public to boost their confidence. This also spreads positive energy to the rest of
the team, knowing that their good work might be someday praised in public too.
4. Give incentives.
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Celebrate success. Giving your employees extra incentive aside from what they are compensated for monthly
can be considered as one motivation driver. This type of motivation often applies if the performance of the
whole organization is at par with its goals, be it monthly, quarterly, or yearly. However, keep in mind that it
is not only monetary incentives that count. You may also include something that does not involve money.
For instance, you may give extra leave credit for those who meet your requirements.
5. Take genuine interest in your staff.
This tip is highly debatable in some circles, seeing that most managers prefer to work with their team in the
professional sphere only. However, there are some great upshots into being part of your teams personal
affairs. A persons career growth can only get him/her so far. In the end, theyre still human and as such will
always have personal matters to attend to. It will help if you are considerate with these, such as family
emergencies, doctors appointment and others. Your attitude towards their problems is greatly appreciated by
employees. Small gestures like these can make big difference.
6. Listen.
This is the simplest tip among the list, yet the hardest to do. With all your worries about your business, its
finances and operations, how will you have the time to listen about how Tom forgot his lunch and now has to
buy food from the canteen? Its tough, but do your best to. You might think that your employees problems
are insignificant compared to yours, but you cant judge what is important to a person and what is not.
Listening to your employees concerns will be greatly appreciated. They can feel more empowered and
happy since they are talking to the right people.
Learning more about them would also help you in knowing how you can motivate them in the future. You
can also establish better working relationships with everyone if you hear out their side of the table.
7. Delegate.
This tip may not apply to everybody. , however delegating tasks to deserving employees will give a positive
outlook on whats going to happen next in their career. I will give them impression that you trust them in
some important tasks. The best employees to delegate tasks with are usually the high performers. Low-
performers are usually given to high-performers to boost their confidence, whilst Mid-performers are usually
the supervisors focus.

8. Be specific.
When a team member deserves to be commended, make sure that you give them a specific compliment.
While saying good work! or good job to a team or a team member may sound motivational, it may also
be deemed as scripted, especially when these words are being thrown to every one very often. Employees
appreciate recognition most when the compliment is specific to their achievement.
Inspiring and motivating the team is one of the most crucial job descriptions for a leader. Lack of motivation
to the team often results to decrease productivity. Following these tips may increase your teams performance
and at the same time better your relationship with them.
How entrepreneur manage motivation in employee?
Employee motivation is a mystery for many managers. But, it doesn't have to be. Instead, understanding how
motivation impacts employee performance, and understanding how to use motivation to improve
performance can be reduced to five master keys. Organizations desiring to improve employee motivation
need a system in place that consistently rewards employee achievements. I'm always surprised how few
organizations have such a system. However, not all employees respond to the same motivations. Each person
has his or her own likes and dislikes, passions, interests and desires. The role of the successful manager is to
learn how to identify what motivates each employee, and learn how to leverage those motives to
simultaneously fulfill the goals of the organization, as well as the goals of each employee.
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The five key employee motivation factors include: satisfaction, appreciation, recognition, inspiration and
compensation.

1. Employee Motivation By Building Satisfaction
In their book "The Service Profit Chain," James Heskett, W. Earl Sasser, and Leonard Schlesinger make a
compelling case that regardless your business, the only way to generate sustained profits is to build a work
environment that attracts, focuses, and keeps talented employees. In other words, they have to be motivated
to show up, get committed and perform at a level of excellence. Employee motivation as it relates to
employees satisfaction is vitally important. And, it goes way beyond just a "happier workforce." Why?

Because there is an undeniable link between satisfied, motivated employees, and satisfied customers. In other
words, focus on creating satisfied employees, focus on employee motivation, and those motivated, satisfied
employees will take care of your customers.
2. Employee Motivation Through Genuine Appreciation
At times, managers unknowingly sabotage employee motivation by failing to recognize the positive
behaviors and achievements of their employees. As a result, employees don't know whether or not they are
doing a good job .I recently had an employee of an organization tell me, "The only time we ever hear any
thing from management is when we do something wrong!"Fortunately, savvy managers can improve
employee motivation by rewarding employees with personal attention. This can include a pat on the back, a
hand-written note, or a quick commenting the hall .When showing appreciation, be specific. Instead of just
saying, "We really are grateful for the good job you do around here," the approach might be, "I really
appreciate how you handled the Franklin Industries account last week when we had to get their rush order
out late Friday afternoon. Your effort really made a difference." By being specific, the employer comes
across as much more sincere, and the employee realizes their actions are truly being watched. And, a highly
level of employee motivation is the natural result.


3. Employee Motivation Through Recognition
Many people will do for recognition what they will not do for money. And, this is the manager's secret
weapon for employee motivation. Some people are motivated by the opportunity to get their name on the
wall, receive a trophy at an annual banquet, or see their name in the company newsletter. It gives them an
"emotional payoff" forth eiractions.Look for ways to increase employee motivation by recognizing
excellence in the workplace. Ring a bell every time an individual or team hits the production target. Put up
posters with the photographs of team members who have had the most days without accidents. Give out
awards for attendance records. Just do something. It is so inexpensive, yet highly effective in your efforts of
employee motivation.
4 Employee Motivation Through Inspiration
Inspiration comes from leadership. This form of employee motivation includes the company's mission,
purpose and goals. People want to be part of an organization that is going somewhere, that stands for
something, and that provides a meaningful service to the market place. If you want to lead an inspired,
mission-guided organization, follow these steps and watch employee motivation improve dramatically.
1. Have a clear mission - in other words, know where you are going.
2. Be excited and passionate about your mission. After all, if you don't get excited, they won't either.
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3. Be able to communicate the mission, it's value to the marketplace. In other words, why it's
worthwhile.
4. Make sure everyone in the organization understands and can communicate the mission.
5. Be sure employees understand how they fit into the process of fulfilling the organization's mission.
6. Make the connection between the mission and the individual values and goals of your employees.
7. Keep your mission in front of everyone in the organization.
5. Employee Motivation Through Compensation
Some employees are motivated by money. In fact, most are motivated by money; at least for their basic
needs. Employee motivation through compensation can come in the form of raises, performance bonuses,
commissions, profit sharing, or any number of "extra benefits" like, automobiles, vacations, or other tangible
items purchased and used as rewards. I noticed an interesting program in a hotel where I recently stayed.
They have a sophisticated system for rewarding employees based on customer feedback. Throughout the
hotel, they have placed customer feedback forms and boxes for depositing the forms. When customers
comment on the performance of a hotel employee, the employee accumulates points that can be used to
purchase rewards like trips, gifts, and other incentives.
Taking Action On Employee Motivation
Whatever the chosen method, it is important to have a system in place that builds employee motivation. Not
every person is motivated by the same factor, or combination of factors. Offering all five - satisfaction,
appreciation, recognition, inspiration and compensation insures that the organization has something to
contribute to the motivation of each employee. JP Maroney is Founder and CEO of People Builders, an
international human development and professional training company specializing in management and
employee development systems. He helps companies develop employee-driven, customer-focused corporate
cultures where employees at every level think and act like owners and take personal responsibility for the
organization's success.

# Motivation Strategies which used by Entrepreneur to lead less personal tenure
To some extent, a high level of employee motivation is derived from effective management practices. To
develop motivated employees, a manager must treat people as individuals, empower workers, provide an
effective reward system, redesign jobs, and create a flexible workplace.
1.Empowering employees
Empowerment occurs when individuals in an organization are given autonomy, authority, trust, and
encouragement to accomplish a task. Empowerment is designed to unshackle the worker and to make a job
the worker's responsibility.
In an attempt to empower and to change some of the old bureaucratic ideas, managers are promoting
corporate entrepreneurships. Entrepreneurship encourages employees to pursue new ideas and gives them the
authority to promote those ideas. Obviously, entrepreneurship is not for the timid, because old structures and
processes are turned upside down.
2.Providing an effective reward system
Managers often use rewards to reinforce employee behavior that they want to continue. A reward is a work
outcome of positive value to the individual. Organizations are rich in rewards for people whose performance
accomplishments help meet organizational objectives. People receive rewards in one of the following two
ways:
Extrinsic rewards are externally administered. They are valued outcomes given to someone by
another person, typically a supervisor or higher level manager. Common workplace examples are pay
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bonuses, promotions, time off, special assignments, office fixtures, awards, verbal praise, and so on.
In all cases, the motivational stimulus of extrinsic rewards originates outside the individual.

Intrinsic rewards are self-administered. Think of the natural high a person may experience after
completing a job. That person feels good because she has a feeling of competency, personal
development, and self control over her work. In contrast to extrinsic rewards, the motivational
stimulus of intrinsic rewards is internal and doesn't depend on the actions of other people.
To motivate behavior, the organization needs to provide an effective reward system. An effective reward
system has four elements:
Rewards need to satisfy the basic needs of all employees.
Rewards need to be included in the system and be comparable to ones offered by a competitive
organization in the same area.
Rewards need to be available to people in the same positions and be distributed fairly and equitably.
The overall reward system needs to be multifaceted. Because all people are different, managers must
provide a range of rewardspay, time off, recognition, or promotion. In addition, managers should
provide several different ways to earn these rewards.
This last point is worth noting. With the widely developing trend toward empowerment in American
industry, many employees and employers are beginning to view traditional pay systems as inadequate. In a
traditional system, people are paid according to the positions they hold, not the contributions they make. As
organizations adopt approaches built upon teams, customer satisfaction, and empowerment, workers need to
be paid differently. Many companies have already responded by designing numerous pay plans, designed by
employee design teams, which base rewards on skill levels.
Rewards demonstrate to employees that their behavior is appropriate and should be repeated. If employees
don't feel that their work is valued, their motivation will decline.
3. Redesigning jobs
Many people go to work every day and go through the same, unenthusiastic actions to perform their jobs.
These individuals often refer to this condition as burnout. But smart managers can do something to improve
this condition before an employee becomes bored and loses motivation. The concept of job redesign, which
requires a knowledge of and concern for the human qualities people bring with them to the organization,
applies motivational theories to the structure of work for improving productivity and satisfaction
When redesigning jobs, managers look at both job scope and job depth. Redesign attempts may include the
following:
Job enlargement. Often referred to as horizontal job loading, job enlargement increases the variety of
tasks a job includes. Although it doesn't increase the quality or the challenge of those tasks, job
enlargement may reduce some of the monotony, and as an employee's boredom decreases, his or her
work quality generally increases.

Job rotation. This practice assigns people to different jobs or tasks to different people on a temporary
basis. The idea is to add variety and to expose people to the dependence that one job has on other
jobs. Job rotation can encourage higher levels of contributions and renew interest and enthusiasm.
The organization benefits from a cross trained workforce.

Job enrichment. Also called vertical job loading, this application includes not only an increased
variety of tasks, but also provides an employee with more responsibility and authority. If the skills
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required to do the job are skills that match the jobholder's abilities, job enrichment may improve
morale and performance.
4. Creating flexibility
Today's employees value personal time. Because of family needs, a traditional nine to five workday may
not work for many people. Therefore, flextime, which permits employees to set and control their own work
hours, is one way that organizations are accommodating their employees' needs. Here are some other options
organizations are trying as well:
A compressed workweek is a form of flextime that allows a full time job to be completed in less
than the standard 40 hour, five day workweek. Its most common form is the 4/40 schedule, which
gives employees three days off each week. This schedule benefits the individual through more leisure
time and lower commuting costs. The organization should benefit through lower absenteeism and
improved performance. Of course, the danger in this type of scheduling is the possibility of increased
fatigue.

Job sharing or twinning occurs when one full time job is split between two or more persons. Job
sharing often involves each person working one half day, but it can also be done on weekly or
monthly sharing arrangements. When jobs can be split and shared, organizations can benefit by
employing talented people who would otherwise be unable to work full time. The qualified
employee who is also a parent may not want to be in the office for a full day but may be willing to
work a halfday. Although adjustment problems sometimes occur, the arrangement can be good for all
concerned.

Telecommuting, sometimes called flexiplace, is a work arrangement that allows at least a portion of
scheduled work hours to be completed outside of the office, with work at home as one of the
options. Telecommuting frees the jobholder from needing to work fixed hours, wearing special work
attire, enduring the normal constraints of commuting, and having direct contact with supervisors.
Home workers often demonstrate increased productivity, report fewer distractions, enjoy the freedom
to be their own boss, and appreciate the benefit of having more time for themselves.
Of course, when there are positives, there are also negatives. Many home workers feel that they work
too much and are isolated from their family and friends. In addition to the feelings of isolation, many
employees feel that the lack of visibility at the office may result in the loss of promotions.

Type of Entrepreneur on the basis of Motivation
Motivation plays an important role in determining various types of entrepreneurs. Motivation denotes that
power which influences the efforts of entrepreneurs to achieve the goals of enterprise.
Generally an entrepreneur is motivated to prove his skill and excellence in job perfor5mance. On the basis of
motivation entrepreneurs are broadly classified as
1. Pure entrepreneur:
A pure entrepreneur is a person who is motivated by psychological and economic or monetary rewards. He
performs an entrepreneurial activity for his personal satisfaction in work, ego or status.
2. Induced entrepreneur:
Induced entrepreneur is an individual who is motivated to take up an entrepreneurial task due to the policy
measures of the government that provides assistance, incentives, concessions and necessary overhead
facilities to set up a new venture. Most of the entrepreneurs are induced, entrepreneurs who enter business
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due to financial technical and several other facilities provided to them by State agencies to promote
entrepreneurship.
3. Spontaneous entrepreneur:
These entrepreneurs start their business out of their natural talents. They are persons with initiative, boldness
and confidence in their ability which motivate them to undertake entrepreneurial activities.
These entrepreneurs have a strong conviction and confidence in their own ability to make the venture
successful. They are creative in nature. Entrepreneurs can be of different types. Some may prefer to go it
alone or share the risk in groups with others. They are found in every economic system and every form of
economic activity as well as in other social and cultural activities. They are seen from amongst farmers,
labourers, fishermen, tribals, artisans, artists, importers, exporters, bankers, professionals, politicians,
bureaucrats and so many others. Spontaneous entrepreneurs are otherwise known as pure entrepreneurs who
are motivated by their desire for self fulfillment and to achieve or prove their excellence in job performance.
They undertake entrepreneurial activities for their personal satisfaction in work, ego, or status. Their strength
lies in their creative abilities. They are the natural entrepreneurs in any society. They do not need any
external motivation.
OTHER TYPE OF ENTREPRENEUR
.Innovative Entrepreneur:
In the early phases of economic development, entrepreneurs have initiative to start new ventures and find
innovative ways to start an enterprise. Thus, innovative entrepreneurs are those who introduces new
products, new method of production techniques, or discovers a new market or a new service or reorganises
the enterprise. It is the innovative entrepreneurs who built the modern capitalism. They are commonly found
in developed countries. They are aggressive in nature who exhibit cleverness in putting attractive possibilities
into practice.
Imitative Entrepreneur:
There is a second group of entrepreneurs generally referred as imitative entrepreneurs. They usually copy or
adopt suitable innovations made by innovative entrepreneurs. They are adoptive and more flexible. They are
organisers of factors of production rather than creator. The imitative entrepreneurs are also revolutionary and
important. They' contribute to the development of underdeveloped economies.
Fabian Entrepreneurs:
The third type of entrepreneur is Fabian Entrepreneurs. Such type of entrepreneurs are very shy and lazy by
nature. They are very cautious people. They do not venture to take risks. They are rigid and fundamental in
their approach. Usually, they are second generation entrepreneurs in a family business enterprise. They
follow the footsteps of their successors. They imitate only when they are very clear that failure to do so
would result in a loss of the relative position in the enterprise.
Drone Entrepreneurs:
The fourth type of entrepreneur is Drone entrepreneurs who refuse to copy or use opportunities that come on
their way. They are conventional in their approach. They are not ready to make changes in their existing
production methods even if they suffer losses. They resist changes. They may be termed as laggards.
The above types of entrepreneurs is not comprehensive for it aims at highlighting the broad range of
entrepreneurs found in business and profession.
Following are some more types of entrepreneurs listed according to the type of business, use of technology,
motivation, growth and stages of development.
According to the Type of Business
Depending on the nature size, type of business, entrepreneurs are divided into five categories. They are as
follows :
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Business Entrepreneur:
Business entrepreneurs are those entrepreneurs who develop an idea for a new product or service and
then establish an enterprise to materialise their idea into reality. Most of the entrepreneurs belong to
this category because majority of entrepreneurs are found in the field of small trading and
manufacturing concerns.
Trading Entrepreneur:
An entrepreneur who undertakes trading activities whether domestic or overseas is known as a
trading entrepreneur. He has to identify the potential market for his product in order to stimulate the
demand for the same. He pushes many ideas ahead of others in the form demonstration to promote his
business.
Industrial Entrepreneur:
Industrial entrepreneurs are essentially manufacturers who manufacture products and services which
have an effective demand in the marketing They have the ability to convert the economic resources
and technology into a profitable venture.
Corporate Entrepreneur:
Corporate entrepreneur is one who through his innovative ideas and skill able to organise, manage
and control a corporate undertaking very effectively and efficiently. Usually, he is a promoter of the
undertaking/corporation engaged himself either in business, trade or industry.
Agricultural Entrepreneur:
Agricultural entrepreneur is one who undertakes agricultural as well as allied activities in the field of
agriculture. He engages himself in raising and marketing of crops, fertilisers and other inputs of
agriculture through employment of modern techniques, machines and irrigation.
According to use of Technology
The entrepreneurs may be classified into the following categories on the basis of application of new
technology in various sectors of the economy.
Technical Entrepreneur:
An entrepreneur who is technical by nature in the sense who is capable of developing new and
improved quality of goods and services out of his own knowledge, skill and specialisation is called a
technical entrepreneur. He is essentially compared to a craftsman who concentrates more on
production than marketing.
Non-technical Entrepreneur:
Non-technical entrepreneurs are those who are mainly concerned with developing alternative
marketing and distribution strategies to promote their business. They are not concerned with the
technical aspects of the product and services they are dealing with.

Professional Entrepreneurs:
Professional entrepreneurs are those who make it a profession to establish business enterprises with a
purpose to sell it once it is established. He is always looking forward to develop alternative projects
by selling the running business. He is not interested in managing and operations of the business
established by him. He is very dynamic in his attitude.
Induced Entrepreneurs:
Induced entrepreneurs are those who are induced to enter into entrepreneurship because of various
governmental support provided in terms of financial assistance, incentives, concessions and other
facilities to the people who want to set up of their new enterprises. Sometimes prospective
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entrepreneurs are induced or even forced by their special circumstance, such as loss of job or inability
to find a suitable job according to their talent and merit to adapt to entrepreneurship.
Other Categories of Entrepreneurs
Solo Operators:
Solo operators are those entrepreneurs who essentially work alone or have a few employees. In the
beginning, most of the entrepreneurs when start their enterprises perceive themselves like them.
Active Partners:
Active partners are basically solo operators who start an enterprise as a joint venture. It is important
that all of them actively participate in the business of the firm.
Partners:
There are certain entrepreneurs who only contribute funds to the enterprise without actively
participating in various activities of the firm are known as simply partners.
Inventors:
There are some entrepreneurs whose chief competence is their creativity and inventiveness to invent
new product are called as inventors. They like to invent new products and services through their
research and innovative activities and may need to set up a business enterprise to make them
commercially viable. Their interest is basically in research, and they often-lack managerial experience
or desire to run a business.
Challengers:
These are the entrepreneurs who get into the business because of the challenge it represents. They
tend to get bored when it seems that challenges are met and doing well. Then they begin to search for
newer challenges.

Women Entrepreneurs:
Women or female entrepreneurs are those section of the female population who venture out into
industrial activities in the field of manufacturing, assembling, job works, repairs/servicing and other
business. The women take the lead, organise and manage the business or industry and help in
providing employment to others.
Rural Entrepreneurs:
Rural entrepreneurs are those who want to carry out their entrepreneurial activities in the rural and
backward sector of the economy. They set up their enterprises in rural areas.

Urban Entrepreneurs:
Urban entrepreneurs are those who establish their enterprises in the urban or developed sector or the
economy and carry out their entrepreneurial activities more successfully than the rural entrepreneurs.

Besides the above types of entrepreneurs a large number of other types of entrepreneurs are also seen
in the economy who have established their business undertakings and perform entrepreneurial
activities successfully. They are retail entrepreneurs, services entrepreneurs, large scale entrepreneurs,
traditional entrepreneurs, skilled, national, international, bureaucratic entrepreneurs and many more.

Motivation is the real power to increasing the performance of employee:
With happy employees, your business has reduced turnover and higher performance. Increase Employee
Performance by Harnessing the Power of Motivation. Employee motivation and productivity can be
enhanced and improved by creating a work environment that maximizes the factors that affect performance.
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These factors are simple to understand, easy to measure, and can add tremendous value to any organization
that is willing to implement them. Use these tips to make sure that your employees are energized and
inspired to produce the best results possible.
1. By providing Interesting Work
Intrinsic motivation comes from the shear joy and pleasure of doing a task. When you read a great book, no
one has to pay for each page you read. It is a pleasure to learn how the story unfolds and watch the plot
develop. It is the same way with employee motivation. To maximize employee performance, find out what
employees like about their jobs and then try to add more tasks that align with their own natural interests and
talents.
2. By providing Appreciation & Recognition
William James said, The deepest desire in human nature is to be appreciated. It does not matter how much
you pay someone, everyone want to know that their efforts are being seen and appreciated, especially by
their manager. Dont just send them a thank you e-mail that just means you care enough to hit the Enter
key. If you really want to thank someone buy them a real Thank You card and describe how their behavior
and performance has added value to the team and organization. Make it a point to catch people doing things
right and they will inevitably do things right more often.
3. Feeling Involved In the Work Process
Research shows that when people get to participate in creating a system or process, they are much more
likely to follow it than one simply imposed upon them by an outside expert. Recognize that the people doing
the job have the knowledge of how things can be done better, faster, and cheaper. If you want them to tell
you, then make it easy for them to offer suggestions and reward employees who contribute ideas that add
value to the bottom line.
4. Achievement
Napoleon once remarked, It is amazing how willing men are to risk their lives for a little bit of tin and
ribbon to wear upon their chest. Awards and prizes can serve as a great motivator to harness the power of
healthy competition. It is always better to use rewards that are meaningful and inspiring. When an employee
exceeds your expectations, then make sure you recognize their achievement. On the day someone retires,
they will pack up these awards and prizes to serve as fond reminders of a wonderful career.
5. By providing Job Security
If everybody had what it takes to be an entrepreneur, then there would be no General Electric or Toyota and
we would all be buying products from artisans and craft workers. Thankfully, many people prefer to be part
of a large organization and can be more productive when they get to focus on doing their job instead of
worrying about developing a business plan or marketing strategy. Telling people that they are lucky to have a
job creates an atmosphere of fear and worry that decreases job performance. Instead, tell your employees that
the company is lucky to have such a skilled and committed workforce and people will take pride in their
work and their company.
6. By providing sufficient Responsibility
We all know that some employees lack ambition and have no desire to advance on the job, but the vast
majority of workers want a chance to take on more responsibility and add more value to the organization.
Always be aware of opportunities for training that will equip your employees with the skills and tools they
will need to advance in their career. Always try to fill open positions with internal applicants before looking
for an outside candidate. This will create a culture of career development and preserve institutional memory
and organizational knowledge so that it can be transferred to rising employees as they advance in their own
career.
7. By providing Good Wages
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Robert Bosch, founder of the worlds largest automobile parts supplier, said, I do not pay good wages
because I have a lot of money; I have a lot of money because I pay good wages. If you want motivated, high
productive employees you have to pay such people according to their ability and performance. Good
employees are motivated by more than just good wages, but never allow low wages to be the wedge a
competitor can use to steal away your best people.
8. By providing Good Working Conditions
If you want to get the most out of people you need to create an environment that facilitates success. At the
minimum, you must offer a safe, clean, and sanitary work site. To get the most out of employees, help them
take pride in their workspace, even if it is only a cubicle or workstation. Allow people to personalize their
own work sites with photos or small trinkets so they will feel like they have a place that belongs solely to
them.
9. Being Part of a Team
Being part of a dysfunctional team is an emotionally draining experience that results in low morale, low
productivity, and high turnover. The great coach, Vince Lombardi, once remarked, Individual commitment
to a group effort that is what makes a team work, a company work, a society work, a civilization work.
We are all social beings and we all want to be part of a healthy team where we can give and receive support,
help, and encouragement. Organizations can harness this natural human desire by aligning employee efforts
to achieve goals that are mutually beneficial to both the organization and its employees.
10. Help with Personal Problems
How many times have you heard about a bad boss who told their employees to leave their problems at the
door so they could focus on their job? Unfortunately, they probably left their motivation and productivity at
the door as well. Smart managers know that it is not their job to be a counselor or therapist, but it is there job
to recognize when one of their employees is having personal problems that are affecting their job
performance. They need to have open lines of honest communication so that employees can feel encouraged
to ask for help and then be directed to their Human Resources Department or their Employee Assistance
Programs.
Thomas Haizlip is an executive coach who works with college educated, mid and senior level managers. He
specializes in three types of clients:
1. High Potential- clients that need fast track development,
2. Valuable, But Risking Derailment clients who are competent, but are not performing well now because
of poor people skills,
3. Diamonds in the Rough- clients who are technically competent but are not advancing because of a lack of
emotional intelligence and limited leadership competencies.
Tom was a clinical psychologist for 16 years before he made the leap from couch to corporation. He helps his
clients master the hard work of becoming a soft skills experts. Tom partners with clients to develop
behaviors and skills that result in increased and sustained job performance and career advancement. Tom
works with individuals and teams to improve emotional intelligence, build trust, engage in honest conflict,
commit to goals, hold each other accountable, and produce results.







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CONCLUSION

Motivation is a psychological feature that induces an organism to act towards a desired goal and elicits,
controls, and sustains certain goal-directed behaviors. It can be considered a driving force; a psychological
one that compels or reinforces an action toward a desired goal. For example, hunger is a motivation that
elicits a desire to eat. Motivation is the purpose or psychological cause of an action.
Entrepreneurial Motivation is the drive of an entrepreneur to maintain an entrepreneurial spirit in all their
actions. Motivation implies an inner stat that causes a person to act towards the attainment of goals. It is an
inspirational process of steering an individuals drives and actions towards goals. It causes a chain reaction.
Motivation is an internal psychological feeling which produces goal directed behavior. It is an ongoing
process because human needs are never completely satisfied. Motivation is dynamic force setting a person
into motion or action. The word motivation is derived from motive which is defined as an active form of a
desire, craving or needs and desires effect of change the behavior which becomes goal oriented.
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BIBLOGRAPHY
Hyperlinks

http://under30ceo.com/8-surefire-tips-to-motivate-your-team/
http://www.unishivaji.ac.in/de/SIM2013/B.%20Com.%20Part-
II%20Fundamentals%20of%20Entrepreneurship%20English%20Version.pdf
http://www.jpmaroney.com/Free-Articles/employee-motivation.htm
https://www.google.co.in/?gfe_rd=ctrl&ei=FF_7UrPvOszM8gfCrICABw&gws_rd=cr#q=motivation
+and+entrepreneurship+pdf
https://www.google.co.in/search?q=motivation+strategies&ie=utf-8&oe=utf-
8&aq=t&rls=org.mozilla:en-US:official&c
http://www.preservearticles.com/201101143343/types-of-entrepreneurs.html
http://theresourcefulceo.com/2013/12/employee-motivation-10-tips-to-boost-job-performance/
http://www.slideshare.net/birubiru/training-and-entrepreneurship-development-programme-in-india
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Books
Renu Arora, S.k. Sood, Fundamental of entrepreneurship, kalyani publishers, 2005.
Ratnesh Pal Singh, Entrepreneurship, Thakur Publisher Ambalacity, 2013.
Dr. D. V. Muley, Registrar, Shivaji University, Kolhapur, Fundamentals of Entrepreneurship, 2008.