Entrepreneurship is proceeded of setting out on your own and starting a business instead of working for someone else in his business. Motivation is the process that arouses action, sustains the activity in progress and that regulates the pattern of activity.
Sharma classified all the factors motivating the entrepreneurs into the following two types:
(A) Internal factors: The entrepreneur may want to complement his income. Extra money from aside business is good for the wallet. The entrepreneur is motivated.
- Desire to do something new;
- Educational background;
- Occupational background or experience;
The entrepreneur may have desire improve living standards. Living in poverty may make one want to start a business. Necessity is the mother of inventions. The need for better living standards motivates.
(B) External factors: Opportunities in the market will encourage an entrepreneur to set up a business. Availability of market means more profit. An entrepreneur is after profits and hence motivated.
- Government assistance and support;
- Availability of labour and raw material;
- Encouragement from big business houses;
- Promising demand for the product.
Murthy, another expert, classified the motivating factors on different bases. According to him, entrepreneurs are motivated to start business enterprises due to the following three types of factors:
- Ambitious factors;
- Compelling factors;
- Facilitating factors.
The majority of entrepreneurs are motivated to enter the industry mainly because of four factors:
- They possessed technical knowledge or manufacturing experience in the same or related line.
- There was heavy demand for the particular product.
- The governmental and institutional assistance available facilitated individuals to enter the industry.
- They have an enterprising attitude an achievement motive to do something independent in life.
These are the factors that influence people to go to business.