ENTREPRENEURIAL BEHAVIOR

Prepared by: MOISES P. RECONALLA, MAT, MAEd Guidance &

Counseling
General Education Lecturer/School Guidance
Counselor
1st Semester 2016

THE MAIN OBJECTIVE OF THIS COURSE:

TO HELP THE LEARNERS TO DEVELOP THE
VALUES, COMPETENCIES AND MOTIVATION
RELATED TO ENTREPRENEURIAL
PERFORMANCE.

LEARNING OUTCOME
At the end of this course, the learners shall be
able to:

Understand and develop entrepreneurial Values

Understand and adopt the attitudes required for
entrepreneurship
Understand and acquire needed behavior
competencies related to entrepreneurial
performance
Analyze human motives and motivational patterns
of entrepreneur

INTRODUCTION
Human behavior in an enterprise is generally concerned with
the thoughts, feelings, emotions, and actions of the people working
in it.
It is rightly said that the success of any enterprise primarily
depends upon the efficiency and the effectiveness of the
entrepreneur and the effectiveness of entrepreneurs depends
primarily upon its human skills and how well he understands the
needs and desires of the people working in the enterprise.

MEANING OF ENTREPRENEURIAL BEHAVIOR

Entrepreneurial behavior is a subset of
entrepreneurial activities concerned with
understanding, predicting and influencing
individual behavior in entrepreneurial
settings. ~ Callahan

CHARACTERISTICS OF ENTREPRENEURIAL BEHAVIOUR

CHARACTERISTICS OF ENTREPRENEURIAL BEHAVIOUR

Behavioural approach to management:
Entrepreneurial behavior represents the behavioral
approach to management. It emerged as a distinct
field of study because of the importance of human
behavior in enterprise.
2. Cause and effect relationship: Human behavior
is generally taken in terms of cause and effect
relationship. It provides generalization that
entrepreneurs can use to anticipate the effect of
certain activities on human behavior.
1.

CHARACTERISTICS OF ENTREPRENEURIAL
BEHAVIOUR
3. A branch of social sciences:
Entrepreneurial behavior is greatly influenced
by other social sciences viz., psychology,
sociology and anthropology.
4. Three levels of analysis: Entrepreneurial
behavior is the study of three levels of
analysis e.g. individual behavior, interindividual behavior and the behavior of
organizations.

CHARACTERISTICS OF ENTREPRENEURIAL BEHAVIOUR

5. A science as well as an art: The systematic knowledge
about human behavior is a science and the application of
behavioural knowledge and skill is an art.
6. A body of theory, research and application:
Entrepreneurial behavior consist of a body of theory,
research and application which helps in understanding the
human behavior in organization.

CHARACTERISTICS OF ENTREPRENEURIAL BEHAVIOUR

7. Beneficial to both enterprise and individuals: A
reasonable climate is created so that employees may get
much needed satisfaction and the entrepreneur may attain
its objectives.
8. Rational thinking: Entrepreneurial behavior provides a
rational thinking about people and their behavior. The major
aim of entrepreneurial behavior is to explain and predict
human behavior in enterprise.

CHARACTERISTICS OF ENTREPRENEURIAL BEHAVIOUR

9. Human part of enterprise: It focuses on people, their
desires and needs. It is the systematic study of the action of
the action and attitudes of people working in enterprise.
10. Change part of enterprise: It points to the need for
change in human behavior with change in technology and
other fields of environment.

APPROACHES TO THE STUDY OF

ENTREPRENEURIAL BEHAVIOUR

APPROACHES TO THE STUDY OF ENTREPRENEURIAL

BEHAVIOUR
1. Human resources approach: Entrepreneurs should
provide active support to workers by threating them part
and parcel of the unit. Entrepreneurs should provide
opportunities and encouragement to workers to work under
loose supervision.
2. Contingency approach: According to this approach,
there is no single way to handle the human resources
under all conditions. The behaviors or methods successful
in one situation may fail in other situation.

APPROACHES TO THE STUDY OF ENTREPRENEURIAL BEHAVIOUR

3. Productivity approach: Productivity means the
numerical value of the ratio of output to input. Higher the
value of this ratio, greater is the efficiency and effectiveness
of the entrepreneur.
4. Systematic approach: According to system approach, an
enterprise is a powerful system with several subsystems
which are highly and closely interconnected. Any action taken
to solve the problem in one subsystem will have its effect on
the other subsystems also. Thus, this approach gives the
entrepreneur a way of looking at the enterprise as a whole,
whole group, and the whole social system.

MODEL OF ENTREPRENEURIAL
BEHAVIOUR

MODEL OF ENTREPRENEURIAL BEHAVIOUR

1. Autocratic model: The basis of this model is the power of the boss.
Max Webber defined power as the probability that one actor, within a social
relationship, will be in a position to carry out his own will despite resistance.
The essential feature of this model are as follows:

Enterprise with an autocratic environment is authority oriented.

Under autocratic model, the employees orientation is obedience to the boss, they
need not be respectful to him.
The autocratic model has been successful in some situations where the workers
are actually lazy and have a tendency to shirk work.
The leadership in an autocratic model is negative.

MODEL OF ENTREPRENEURIAL BEHAVIOUR

2. The custodial model: This model overcomes the shortcomings of the Autocratic
model. The insecurity and frustration felt by workers under the autocratic model
sometimes led to aggression and frustration. There was a need to develop a model
which will improve the employer-employee relations.
Some of this important features of this model are as explained below:

The success of the custodial model depends upon the economic resources
because this model emphasis the economic reward and benefits.
The employees depends upon the unit rather than to their boss.
Under this model, the employees are satisfied & happy and they are not strongly
motivated.
The main benefit of this model is to bring security & satisfaction to the
employees.

MODEL OF ENTREPRENEURIAL BEHAVIOUR

3. The supportive model: The supportive model has originated from the Principals
of supportive relationships.
The main features of this model are as follows:
The supportive model depends on leadership instead of power or money.
The leader assumes that the workers will take responsibility, make their contribution
and improve themselves, if given a chance.

It should be the duty of the entrepreneur to support the employees job

performance.
This model takes care of the psychological needs of the employees in addition to
their subsistence and security needs.

MODEL OF ENTREPRENEURIAL BEHAVIOUR

4. The collegial model: The dictionary meaning of collegial is a body of persons
having a common purpose.
The main features of this model are as follows:
This model creates a favorable climate in the unit as the workers feel that they are
the partner in the enterprise.
This model inculcates the team spirit in unit.
In this model, the workers have job satisfaction, job involvement, and job
commitment.

5. OTHER MODEL OF ENTREPRENEURIAL

BEHAVIOUR
5.1 Normative models: The normative models seek to find out that what should be
done to produce optimum result.
5.2 Empirical models: the empirical models describe the activities that the
employees actually perform.
5.3 Ecological models: Models which deals with the changes which take place in the
environment & which understand the complexities of environment are ecological
models.
5.4 Non-Ecological models: Non-ecological models assume stability in the
environment that everything will remain the same.
5.5 Ideographic models: The models that are developed to deal with specific cases or
unique situations are called ideographic models.
5.6 Nomothetic models: These models deal with general situations. These are
concerned with theory building on the macro level basis.

ROLE & IMPORTANCE OF ENTREPRENEURIAL

BEHAVIOUR

ROLE & IMPORTANCE OF ENTREPRENEURIAL

BEHAVIOUR
1.

Understanding human behavior: Entrepreneurial behavior plays an important role

to develop full knowledge about the behavior of employees.

2.

Predicting human behavior: Entrepreneurial behavior also help in predicting the

future employee behavior. This would allow them to take preventive actions.

3.

Control and direct behavior: Entrepreneurial behavior assists entrepreneur to direct

and control the human behavior to build successful enterprise.

4.

Entrepreneurial effectiveness: It helps in better use of raw material and other

resources to improve the quality of work in the enterprises.

5.

Motivation: Entrepreneurial behavior helps the entrepreneurs to identify the needs

and requirement of the employees.

6.

Better human relations: Entrepreneurial behavior also help in maintaining cordial

human relations in the enterprise. It assists in finding out the causes of industrial
conflicts.

END OF PART I OF II LESSON PRESENTATION IN ENTREPRENEURIAL

BEHAVIOR FOR BS ENTREPRENEURSHIP STUDENTS
By : MOISES P. RECONALLA, MAT, MAEd Guidance &
Counseling
General Education Lecturer/School Guidance Counselor
1st Semester 2016