Motivational Factors

For employees to give their best, a driving force is required to make

them willing to accept responsibility towards the achievement of their
entrepreneurs objectives. These motivational factors include the following:
(i) Good terms and conditions of employment.
(ii) Bonus.
(iii) Status.
(iv) Recognition.
(v) Responsibility.
(vi) Challenging assignments.
(vii) Job Security.
(viii) Other fringe benefits.
(ix) Reward for innovative ideas and creativity.
(x) Good relationship between the entrepreneurs and the employees.
An entrepreneur who knows his worth would be able to know these factors,
which, when appropriately applied would result high productivity to the
organization.

What is Motivation?
Motivation was coined from a Latin word meaning, to move, which
could be described as the ability to carry the work force along towards the
accomplishment of the organizational goals.
Motivation is the cause of an
organism's behavior, or the reason that an organism carries out some
activity. In a human being, motivation involves both conscious and
unconscious drives. Psychological theories must account for a primary
level of motivation to satisfy basic needs, such as those for food, oxygen,
and water, and for a secondary level of motivation to fulfill social needs
such as companionship and achievement. The primary needs must be
satisfied before an organism can attend to secondary drives. So,
Entrepreneurship motivation is the cause of entrepreneurship. It further
explains what drives or propels people into entrepreneurship.
Entrepreneurs are motivated primarily by the desire to create
something new, the desire for autonomy, wealth, and financial
independence, the achievement of personal objectives and the propensity for
action (doing). An entrepreneur must be able to combine his leadership
quality, skill, style, and the working environment to make his employees
respond to the achievement of his organizational objectives.

Types of Business Ownership

There are numerous types of business ownership. In deciding on the nature
of business organization to engage in, the entrepreneur should make his
choice from the list of businesses available, considering their advantages
and disadvantages. These businesses include:
(i) Sole Proprietorship
(ii) Partnership
(iii) Co-operative Societies
(iv) Joint Ventures
(v) Syndicates

Sole proprietorship
The most common form of ownership is a sole proprietorship which
is a business owned by one individual. At the beginning of the 21st century,
there were more than 17 million sole proprietorships in the United States.
These businesses have the advantage of being easy to set up and to dissolve
because few laws exist to regulate them. Proprietors, as owners, also
maintain direct control of their businesses and own all their profits. On the
other hand, owners of proprietorships are personally responsible for all
business debts and, because they are constrained by the limits of their
personal financial resources, they may find it difficult to expand or increase
their profits. For those reasons, sole proprietorships tend to be small,
primarily service and retail businesses.
Sole proprietorship is a business mainly owned by one man or a single
individual. It is operated and managed by the owner who is the risk bearer of
the business. He is responsible for the acquisition of all the assets required
for the business operation, also, incurs all the liabilities alone, and raises all
the required capital for the business. He incurs all losses alone. Apart from
bearing the risks alone, he enjoys all the gains, earnings, and profits of the
business. The success or failure of this form of business depends on the
owners ability to manage the business effectively.

Partnership

A partnership is an association of two or more people who operate a

business as co-owners. There are different types of partners. A general
partner is active in the operation of a business and is liable for all of its
debts. In small businesses with only two or three owners, all typically will be
general partners. A limited partner, by contrast, invests in a business but is
not involved in its daily operations. Partnerships, like sole proprietorships, are
relatively easy to establish. Furthermore, partners can pool financial
resources to fund expansion and can divide their duties and responsibilities
according to personal expertise and abilities. For example, one partner may
be very good at selling, while another has a knack for maintaining good
financial records. As with sole proprietorships, however, partnerships may
entail substantial financial risks, as all of the general partners are liable for
the debts of the business. And unlike proprietorships, disagreements among
partners can harm partnership businesses.
Partnership can be defined according to section (1) of the Partnership
Act of 1890.As, a relationship that subsists between two or more persons,
coming on a business in common with a view of making profit. The number
of persons to form a partnership is limited to220 with the exception of banks
whose membership is restricted to 10 persons.

Types of Partners
There are two main types of partners and they are:
General Partner
A general partner is one whose liability is unlimited and who
participates actively in the day-to-day running of the business activities.
Limited Partner
A limited partner is one whose liability is limited to the initial
investment made in the business. In event of bankruptcy, he does not
participate actively in the management of the partnership.

Co-operative Societies
A corporation is a legal entity that exists as distinct from the
individuals who control and invest in it. As a result, a corporation can
continue indefinitely through complete changes of ownership, leadership,
and staffing. Current owners can sell their holdings to other individuals or, if
they die, have their assets transferred to heirs. This is possible because a
corporation creates shares of stock that are sold to investors. A major
strength of the corporate business structure is that stockholders have limited

liability, as opposed to the unlimited liability of general partners, so they

cannot lose more than their initial investment.
Investors may also easily buy and sell stocks of public corporations
through stock exchanges. By offering stock publicly, a corporation enables
anyone with some money to buy the stock and become a part-owner of the
company. As a result, corporations can more easily raise capital for business
expansion than can sole proprietorships and most partnerships.
Investors control a corporation through the election of a managing body,
known as a board of directors. In a large corporation, investors collectively
decide who will oversee the operation of the enterprise. In turn, the board
chooses a president, who decides on the key company personnel and helps
formulate company strategy.
Many corporations are highly successful business organizations, with
profits far exceeding those of many sole proprietorships and partnerships.
However, they traditionally have higher tax burdens than other kinds of
businesses. Also, the fees involved in creating and organizing a corporation
can be expensive.
They are associations or group of people who pool their resources
together to engage in a business transaction for the purpose of making
profit, but mainly for the benefit of the members.
Co-operative Society can be:
(i) Producers Co-operative Society.
(ii) Thrift Co-operative Society.
(iii) Trading Co-operative Society.
(iv) Consumers Co-operative Society.

Joint Ventures
In joint ventures and syndicates, individuals or businesses cooperate to
create a single product or service package. A joint venture is a partnership
agreement in which two or more individual- or group-run businesses join
together to carry out a single business project. For example, U.S.-based
General Motors Corporation and Toyota Motor Corporation, based in Japan,
have a joint venture called New United Motor Manufacturing, Inc., created for
the purpose of producing cars in California.

Syndicates
A syndicate is an association of individuals or corporations formed to
conduct a specific financial transaction such as buying a business. Quite
often syndicates are created for the purpose of buying sports franchises. For
example, the Miami Heat basketball team and the New York Yankees baseball
team are each owned by syndicates of individuals. Each member of these
syndicates is also involved in the operation of other businesses.

Performance/ Success of Business

According to the table in page two above, the respondents rated their
success in business as quite high on various measures. They also reported
that their businesses were quite profitable with median percentage annual
growth in revenues, customers, and profits in the past three years of 25, 20
and 13 respectively. They judged their success not only on the basis of
business barometers like revenues, profits, growth and business reputation
and monetary rewards, but also on personal factors like satisfaction and
goal-achievement.
Most entrepreneurs felt their success was tied to creating something
new and durable ('create a world-class company based on intellectual
property') and to leaving a legacy ('leaving an indelible mark on the sands of
time'). A few viewed success as being able to prove themselves and several
emphasized the importance of the contribution of their business to the
nation. The respondents attributed their success mainly to hard work and
focus or drive. Other factors were technical knowledge/experience and
access to resources.
Emotional or mental strength, resilience ('I can't be kept too down for
too long'), perfectionism and patience were other frequently mentioned
qualities. Leadership skills, particularly communication skills and good
employee management, were highlighted as contributors to success.
Such organizations can develop programs to help entrepreneurs
translate concepts into reality and to create role models. Another
recommendation is to have schools play a more active role in encouraging
entrepreneurship as a career by among other things, establishing training
programs. The Following are important:

Do whatever it takes, whatever is necessary.

Retain strong customer focus.
Invest for the long-term.

Invest in quality.
Be hands-on.
Multi-tasking is important
The need for the ability to tolerate ambiguity.
Share profits with employees.
Governments relative involvement in the high tech industry is a
blessing.

Challenges of Entrepreneurship
The following are some of the major challenges of Entrepreneurship:

Financial struggle -- lack of money in the business as well as personally

was the most cited negative factor.
No government support -- however, a few entrepreneurs disagreed,
saying that the government has been supportive and has given lots of
concessions to the high tech industry.
Death of sophisticated local investors and angel investors Lack of a
forum for discussing entrepreneurial issues.
Difficulty in finding top-notch resources (for instance, recruiting from
good schools).
Poor infrastructure.
Corruption and bureaucracy