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Faculty of Mathematics and Natural Sciences Institute for Work, Social and Organizational Psychology Entrepreneurial Motivation, Personality

Faculty of Mathematics and Natural Sciences Institute for Work, Social and Organizational Psychology

Entrepreneurial Motivation, Personality and Competencies

Dominika Dej

Institute of Work-, Organizational- and Social Psychology, TU Dresden

Prague, 25. 07. 2011

Silesian University in Katowice Dresden University of Technology
Silesian University in Katowice Dresden University of Technology
Silesian University in Katowice Dresden University of Technology
Silesian University in Katowice Dresden University of Technology

Silesian University in Katowice

Dresden University of Technology

Silesian University in Katowice Dresden University of Technology
Today‘s agenda  We get to know  Entrepreneurial motivation  Entrepreneurial personality traits  Entrepreneurial

Today‘s agenda

We get to know

Entrepreneurial motivation

Entrepreneurial personality traits

Entrepreneurial competencies

Assess your entrepreneurial potential

Active group exercises

Pillars of the seminar Theory + (Inter) Action “Skills cannot be mastered by listening to lectures

Pillars of the seminar

Theory + (Inter) Action

“Skills cannot be mastered by listening to lectures but by observation of positive models (…) coupled with repeated practice and feedback.”

Richard Hackman

Participation: Leaving the comfort zone

What is motivation?  Motivation is the desire to achieve a goal, combined with the energy

What is motivation?

Motivation is the desire to achieve a goal, combined with the energy to work towards that goal

Motivation is the basic drive for all of our actions and it directs our behavious

A motive is a need for specific experiences

Motives are stimulated by the situation

Achievement motivation 3 main motives (McClelland, 1985) is based on reaching success and achieving all of

Achievement motivation

3 main motives

(McClelland, 1985)

is based on reaching success and achieving all of our aspirations in life. An individual with achievement motivation wishes to achieve objectives and advance up on the ladder of success. Here, accomplishment is important for its own sake and not for the rewards that accompany it. The capacity to derive satisfaction from the autonomous mastery of challenging tasks.

Power motivation

is the drive to influence people and change situations. Power motivated people wish to create an impact on their organization and are willing to take risks to do so. Includes need for control and prestige. The capacity to derive pleasure from having mental or emotional impact on other individuals or groups of individuals.

Affiliation motivation

is a drive to relate to people on a social basis. Persons with the affiliation motivation perform better when they are complimented for their favorable attitudes and co-operation. A capacity to derive satisfaction from establishing, maintaining, and restoring positive relationships with others.

Explicit Motives Explicit motives are expressed through deliberate choices… I am a person who… 7 Achievement:

Explicit Motives

Explicit motives are expressed through deliberate choices…

I am a person who…

Explicit Motives Explicit motives are expressed through deliberate choices… I am a person who… 7 Achievement:

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Achievement: „I am basically a competitive person, and I compete just for the sake of competing.“

Autonomy; „In my work assignments, I try to be my own boss“

Affiliation: „When I have a choice, I try to work in a group instead of by myself.“

Power: „I seek an active role in the leadership of a group.“

(PRF, Jackson, 1984)

Implicit motives Implicit motives are spontaneous impulses to act… (Winter, 1991) • What is going on

Implicit motives

Implicit motives are spontaneous impulses to act…

Implicit motives Implicit motives are spontaneous impulses to act… (Winter, 1991) • What is going on

(Winter, 1991)

• What is going on here? • Who are these people? • What do they think? • What do they want? • What will happen?

Implicit motives Implicit motives are spontaneous impulses to act… (Winter, 1991) • What is going on

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Implicit vs. explicit motives Implicit Motives r ≈.0 Explicit Motives I am a person who… (McClelland,

Implicit vs. explicit motives

Implicit vs. explicit motives Implicit Motives r ≈.0 Explicit Motives I am a person who… (McClelland,

Implicit Motives

r ≈.0

Implicit vs. explicit motives Implicit Motives r ≈.0 Explicit Motives I am a person who… (McClelland,

Explicit Motives I am a person who…

(McClelland, Koestner & Weinberger, 1989; Brunstein, 2006)

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Class activity: Entrepreneurial motivation 1) What personal factors motivate people to start up a business? 2)

Class activity: Entrepreneurial motivation

1) What personal factors motivate people to start up a business?

2) What external situational factors motivate people to start up a business?

3) What factors (both personal and situational) discourage people to become entrepreneurs?

Opportunity vs. Necessity Opportunity driven entrepreneurs (future orientation)… - want to exploit a perceived business opportunity

Opportunity vs. Necessity

Opportunity driven entrepreneurs (future orientation)…

  • - want to exploit a perceived business opportunity

Opportunity vs. Necessity Opportunity driven entrepreneurs (future orientation)… - want to exploit a perceived business opportunity
  • - strive for independence, self-actualisation, recognition and profit maximization

  • - on average they rise higher than necessity driven entrepreneurs

Necessity driven entrepreneurs

(‘away from’ orientation)…

  • - are pushed into entrepreneurship because all other options for work are

either absent or unsatisfactory

  • - dissatisfaction with working conditions, contents and time

  • - pursue entrepreneurship to secure their own existence

Push vs. pull motivational factors

Push vs. pull motivational factors

Motivation 1. Estimation of start up chances in a given environment 2. Perception of own necessary

Motivation

1. Estimation of start up chances in a given environment 2. Perception of own necessary skills
1.
Estimation of start up chances
in a given environment
2.
Perception of own necessary skills and
abilities
3.
Availability of role models
4.
Fear of failure and its personal, social,
and financial consequences
Start up
Start
up
Positive models: Bill Gates – A story of Success

Positive models: Bill Gates – A story of Success

Positive models: Bill Gates – A story of Success
Example of Entrepreneurial Traits Need of achievement  Denotes individual’s need to strive hard to attain

Example of Entrepreneurial Traits

Need of achievement

Denotes individual’s need to strive hard to attain success.

Setting demanding targets for oneself, being proactive, tendency to take immediate responsibility for tasks, plan and control events. Want to receive feedback about their level of performance.

Locus of control

One aspect of the cognitive style which represents the extension to which individual feels in charge.

Perception of control over the environment by one’s action, belief that luck and fate do not really determine what happens.

Risk taking  Describes the individual cognitive style with respect to taking risks.  Actively seeking

Risk taking

Describes the individual cognitive style with respect to taking risks.

Actively seeking risky assignments and having greater propensity to take risks.

Personal initiative

A behaviour syndrome resulting in an individual’s taking an active and self- starting approach to work and going beyond what is formally required in a given job.

Tolerance of ambiguity

Describes one’s ability to make decision with incomplete information.

Making decisions in situations of high uncertainty.

Creativity  Describes the tendency towards experimentation, trial and error, lateral thinking.  Thinking in non-conventional

Creativity

Describes the tendency towards experimentation, trial and error, lateral thinking.

Thinking in non-conventional ways, challenging existing assumptions, flexibility and adaptability in problem solving.

Need of autonomy

Represents one’s strive to be independent and having control.

Avoiding restrictions, rules, procedures and strong need for independence and autonomy.

Self-efficacy

Describes optimistic self-beliefs to cope with a variety of difficult demands.

Belief that one's actions will produce desired results.

Example of Entrepreneurial Motivational Traits Ambition (Healthy ambition)  Strong desire to attain high results; willingness

Example of Entrepreneurial Motivational Traits

Ambition (Healthy ambition)

Strong desire to attain high results; willingness to make something real and to meet high standards

Egoistic passion

acting in one’s own interests, passion in following own goals doesn’t mean ignoring other people. Scarifying other things in order to follow own priorities

 

Energy

Hardiness, endurance, stamina

Tenacity

being persistent in following ideas in troubles, not giving up

Big-Five personality variables (FFM; Costa &McCrae, 1992) Dimension Description High scores on the scale Low scores

Big-Five personality variables

(FFM; Costa &McCrae, 1992)

Dimension

Description

High scores on the scale

Low scores on the scale

Neuroticism

Represents individual

Experiencing negative emotions:

Self-confidence,

differences in emotional stability

anxiety, hostility, depression, self consciousness, impulsiveness

calm, relaxed

Extraversion

Represents the extent to which an individual is assertive, dominant, energetic, talkative

Tendency to be cheerful, like people and big groups, look for excitement and stimulation

Tendency to spend time alone, being reserved, quiet, independent

Openness to Experience

Describes tendency to seek new experiences, exploration of novel ideas

Being creative, innovative, imaginative, reflective, untraditional

Being narrow, conventional, non analytical

Agreeableness

Represents one’s interpersonal orientation

Trusting, forgiving, caring, altruistic, gullible, tendency to have good interpersonal relationships

Low need for affiliation, unforgiving, able to make difficult decisions

Conscientious

Describes individual’s degree

High need of achievement,

Low need of

ness

of organisation, persistence, hard work and motivation in pursuit the goal accomplishment

persistence and dependability (reflects the extend to which one is organised, deliberate, fulfils duties and responsibilities)

achievement and low dependability

Your entrepreneurial potential 1) Personal initiative 2) Self-efficacy 3) Achievement seeking 4) Creativity Your task Fill

Your entrepreneurial potential

1) Personal initiative

2) Self-efficacy

3) Achievement seeking

4) Creativity

Your task

Fill out the questionnaires Calculate the mean score (M) Discuss your results briefly with your neighbour

Your vs. entrepreneurs’ entrepreneurial potential Personal initiative  Entrepreneurs' from Poland, Germany & The Netherlands (N=

Your vs. entrepreneurs’ entrepreneurial potential

Personal initiative

Entrepreneurs' from Poland, Germany & The Netherlands (N= 325), Mean = 4.00 (SD= .54)

  • - No gender & country differences

  • - No differences between industry sectors (IT vs. Restaurants)

  • - Norm Population (M= 3.5)

  • - (Frese, Kring, Soose & Zempel, 1996)

Self-efficacy  Entrepreneurs' from Poland, Germany & The Netherlands (N= 325), Mean = 3.13 (SD= .36)

Self-efficacy

Entrepreneurs' from Poland, Germany & The Netherlands (N= 325), Mean = 3.13 (SD= .36)

-

No gender & country differences

-

No differences between industry sectors (IT vs. Restaurants)

-

Norm Population (M= 2.9)

-

(Schwarzer & Jerusalem, 1989)

Psychological tests - measuring entrepreneurial potential - Are they useful and when? - Advantages/ Disadvantages -

Psychological tests - measuring entrepreneurial potential

  • - Are they useful and when?

  • - Advantages/ Disadvantages

  • - What are their alternatives?

Psychological tests - measuring entrepreneurial potential - Are they useful and when? - Advantages/ Disadvantages -
Personality traits vs. competencies Personality trait  A relative stable, consistent, and enduring internal characteristic that

Personality traits vs. competencies

Personality trait

A relative stable, consistent, and enduring internal characteristic that inferred from a pattern of behaviors, attitudes, feelings, and habits in the individual.

Competence

One‘s developed repertoire of skills, especially as it is applied to a task or set of task

VandenBos, G.R. (Ed.) (2007). APA Dictionary of Psychology. Washington, DC: American Psychology Association.

Examples of Entrepreneurial Competencies  Entrepreneurial Career Vision Includes formulation of long term goals and preparation

Examples of Entrepreneurial Competencies

Entrepreneurial Career Vision

Includes formulation of long term goals and preparation of action- implementation plan.

Decision Taking

Means to analyze the different alternatives available in order to determine the best path to follow assuming full responsibility of the outcomes.

Management

Ability to gather, integrate and manage required resources in order to start, maintain and grow within the organization.

Conceptual thinking One’s disposition to identify the relation existing among different components in complex situations, that

Conceptual thinking

One’s disposition to identify the relation existing among different components in complex situations, that are not directly related, and the ability to construct models that are easy to use.

Entrepreneurial networking

Includes establishing, maintaining and taking advantages of interpersonal and institutional relationships in order to achieve entrepreneurial goals.

Flexibility

One’s disposition to change focus in order to follow better fitting options that allow tasks to be well executed.

THANK YOU!!!

THANK YOU!!!

THANK YOU!!!