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6 Main Need for Achievement Motivation Theory of Entrepreneurship

Need for Achievement Motivation Theory of Entrepreneurship, This is the psychological need to achieve. It provides drive to the entrepreneur to set up a new venture, to achieve targets, to sense problems and opportunity, to take many risks so as to run the business successfully. It is nothing but a person’s desire either for excellence or to succeed in a competitive situation.

Thus achievement motivation means a drive to overcome challenges in reaching higher goals. It is a strong desire to achieve a higher goal and make dreams come true. In short, it is a strong desire to win. Entrepreneurs can be classified in many ways. We will throw light on the 6 Main Need for Achievement Motivation Theory of Entrepreneurship important here.

#1. Characteristics of Achievement Motivation:

  1. Business Entrepreneur: He is an individual who discovers an idea to start a business and then builds a business to give birth to his idea.
  2. Corporate Entrepreneur: He is a person who demonstrates his innovative skill in organizing and managing a corporate undertaking.
  3. Industrial Entrepreneur: He is an entrepreneur who undertakes manufacturing activities.
  4. Trading Entrepreneur: He is an entrepreneur who undertakes trading activity i.e; buying and selling manufactured goods.
  5. Agricultural Entrepreneur: They are entrepreneurs who undertake agricultural activities such as raising and marketing of crops, fertilizers, and other impacts of agriculture. They are called entrepreneurs.

#2. Based on The Use of Technology:

Entrepreneurs are classified into various types. Below read the point.

  1. Professional Entrepreneur: He is an entrepreneur who starts a business unit but does not carry on the business for a long period. He sells out the running business and starts another venture.
  2. Technical Entrepreneur: They are extremely task-oriented. they are of craftsman type. they develop a new and improved quality of goods because of their craftsmanship. they concentrate more on production than on marketing.
  3. Non-Technical Entrepreneur: These entrepreneurs are not concerned with the technical aspects of the product. They develop marketing techniques and distribution strategies to promote their business. Thus they concentrate more on marketing aspects.

#3. The Basis of Inspiration:

Entrepreneurs are classified into various types. Below read the point.

  1. Spontaneous Entrepreneur: They are motivated by their desire for self-employment and to achieve or prove their excellence in job performance. They are natural entrepreneurs.
  2. Induced Entrepreneur: He is induced to take up an entrepreneurial activity with a view to avail some benefits from the government. These benefits are in the form of assistance, incentives, subsidies, concessions, and infrastructures.
  3. Motivated Entrepreneur: These entrepreneurs are motivated by the desire to make use of their technical and professional expertise and skills. They are motivated by the desire for self-fulfillment.
  4. Pure Entrepreneur: They believe in their own performance while undertaking business activities. They undertake business ventures for their personal satisfaction, status, and ego. They are guided by the motive of profit. For example, Dhirubhai Ambani of Reliance Group.

#4. Depending on The Stages of Development:

  • Classical Entrepreneur: He is one who develops a self-supporting venture for the satisfaction of customers’ needs. He is a stereotype or traditional entrepreneur.
  • First Generation Entrepreneur: He is one who starts an industrial unit by means of his own innovative ideas and skills. He is essentially an innovator. he is also called a new entrepreneur.
  • Modern Entrepreneur: He is an entrepreneur who undertakes those ventures which suit modern marketing needs.

#5. Classification on The Basis of Environmental Activity:

  1. Portfolio Entrepreneurs: A portfolio entrepreneur starts and runs a number of businesses at the same time. It may be a strategy of spreading risk or it may be that the entrepreneur is simultaneously excited by a variety of opportunities.
  2. Novice: A novice is someone who has started his/her first entrepreneurial venture.
  3. Serial Entrepreneur: A serial entrepreneur is someone who is devoted to one venture at a time but ultimately starts many. He repeatedly starts businesses and grows them to a sustainable size and then sells them off.

#6. Classification By, Clarence Danhof:

Clarence Danhof, On the basis of American agriculture, classified entrepreneurs in the following categories. Entrepreneurs are classified into various types. Below read the point.

  1. Drone Entrepreneurs: Drone entrepreneurs are those who refuse to adopt and use opportunities to make changes in production. they would not change the method of production already introduced. They follow the traditional method of production. They may even suffer losses but they are not ready to make changes in their existing production methods. There is another classification of entrepreneurs. According to this, entrepreneurs may be broadly classified into commercial entrepreneurs and social entrepreneurs.
  2. Commercial Entrepreneurs: They are those entrepreneurs who start business enterprises for their personal gain. They undertake business ventures for the purpose of generating sales and profits. Most of the entrepreneurs belong to this category.
  3. Adoptive Or Imitative Entrepreneurs: Imitative entrepreneurs do not innovate the changes themselves, they only imitate techniques and technology innovated by others. They copy and learn from innovating entrepreneurs. While innovating entrepreneurs are creative, imitative entrepreneurs are adoptive. Innovative entrepreneurs bring about a transformation in lifestyle and are always interested in introducing innovations.
  4. Fabian Entrepreneurs: These entrepreneurs are traditionally rounded. they would be cautious. they neither introduce new changes nor adopt new methods innovated by other entrepreneurs. they are shy and lazy. they try to follow in the footsteps of their predecessors. They follow old customs, traditions, sentiments, etc. They take up new projects only when it is necessary to do so.
  5. Social Entrepreneurs: They are those who identify, evaluate, and exploit opportunities that create social values and not personal wealth. Social values refer to the basic long-standing needs of society. They focus on the disadvantaged sections of society. They play the role of change agents in society. In short, social entrepreneurs are those who start ventures not for making profits but for providing social welfare.
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