EDS 121

MOTIVATING FORCES IN
ENTREPRENEURSHIP
DECISION
OBJECTIVES
 At the end of this lecture, the students will
be able to;
 Describe the motivating factors behind
entrepreneurship.
 Distinguish between these factors.
 Examine the components of
entrepreneurial equations.
Cont’
 Define elements of entrepreneurship.
 Describe the make up of these elements.
MOTIVATING FORCES IN THE
ENTREPRENEURSHIP DECISION

 Entrepreneurship does not just come like

that, there are some motivating factors
that usually lead someone into taking
decision to be an entrepreneur.
 These factors when combined together, is
what is called ENTREPRENEURSHIP
EQUATION.

Cont’
 Just like in mathematics and other science
equations, certain variables are combined
together to obtain an entrepreneurship
equation.
 These variables, are the motivating factors
behind entrepreneurship.
CONT’
 All the renowned entrepreneurs we know
in the world today, are being motivated
into business by one or two of these
factors.
 The understanding of these factors and
their combination, will go a long way in
helping us to appreciate the reason(s) why
some are entrepreneurs and others are
not.
CONT’
 Entrepreneurship is therefore a product of
decision and thought resulted from these
motivating factors.
 No one can be forced into entrepreneurial
venture, it is a product of the combination
of different factors.
 While some of these factors are negative
others are positive.
 Each of these factors will be treated in this
lecture.
ENTREPRENEURSHIP EQUATIONS

 There are two types of equations; there

are:
 (i) Motivation Equation and
 (ii) Venture Launching likelihood Equation
 These are the factors that pull and push
someone into starting an entrepreneurial
venture.
1) The Entrepreneurship Motivation

 Equation is given as:

 M= Ai x Tj
 Where Ai = Antecedent variables.
 Tj= Triggering variables.
 M=Motivation to start
a venture
Antecedent Variables
 These are the positive factors that motivate
someone to into business. They also known as
the pull factors. These factors include;
 Creativity
 Background
 Personality
 Past Experience
 Education
 Mentors
 etc.
Triggering variables
 These are the factors that trigger or force out the
entrepreneurial spirit in someone and push the
person until a venture emerges. They may either
be positive or negative but are usually called the
push factors. These factors include;
 Loss of Job
 Invention
 Idea
 Offer from Banker
 Loss of one’s spouse
 Deployment and redeployment
 Etc.
CONT’
 Antecedent and triggering factors
Antecedent Factors Triggering Factors

Creativity
Background Loss of Job
Personality Invention
Past Experience Idea
Education Offer from Banker
2)Venture Launching Equation
 L = Ai x Tj x Ex
 Where L = Likelihood of venture
Launching
 AI = Antecedent variables
 Tj = Triggering variables
and
 Ex= Enabling variables.
 These factors help an entrepreneur to
launch out his/her entrepreneurial venture.
Enabling Variables
 Without conducive environment, a conceived
idea may just die off without manifesting into
entrepreneurial venture. The enabling factors
therefore as supportive factors that help an
entrepreneur to launch out his/her venture. These
factors include;
 Opportunity
 Resources
 Culture and belief system
 Social condition
 Peer groups
 Etc.
CONT’
 Three factors for launching an
entrepreneurial venture
Antecedent Factor Triggering Factor Enabling Factor

Creativity Loss of Job

Background Invention Opportunity
Personality Idea Resources
Past - experience Offer from
Education Banker
THANK YOU