Entrepreneurship Development (DAF – MUBS)

ENTREPRENEUALSHIP AMBITIONS
In the process of developing a business idea, organizing and allocation of productive resources,
entrepreneurs are struggling to get what they want from their efforts or to have a standard of living in
future.
The following are common aspirations entrepreneurs are struggling for;

1) To get economic benefits

Since they organize and allocate economic resources, they are looking for economic reforms in form of
money or profits. This therefore explains the economic theory of entrepreneurship.

2) To continue family business

Such entrepreneurs are classified as inheritance entrepreneurs. it could be a culture that the whole
linkage depends on the ancestral business. such a business is normally private and individual based.

3) To secure self employment

Most people want to go private and in this they are looking for autonomy/independence.

4) To fulfill the desire of self, wife parents comrades.

When somebody is at a given level of life, he develops desires for a business to function for his own
benefit or any other persons close to him.

5) To gain social prestige

Such people do communal work in their business terms for others to appreciate. In this process,
economic budgets are just an outcome of operations but not the cause.

THE MOTIVATING FACTORS OF ENTREPRENEURS

The motivating factors are largely both internal and external

Internal Factors

These are factors related to an individual and his very business setting since the business and the
person are largely inseparable. These involve both push and pull factors

a) Pull factors

Such factors motivate entereprenual people to run them at their own will. Such pull factors may
include

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BY AMBROSE TUBENAWE 0772467417 tubenawea@yahoo.com
 Entrepreneurship Development (DAF – MUBS)

 The financial reward

Entereprenual businesses are run and owned by the private people such that the individual expresses
to commitment to business in order to get economic benefits e.g. profits

 The freedom of work for oneself

Various people exert their total effort when they are working for themselves. In this case there is
struggle to be target workers at the place work so that at retirement one is able to go private and
become self employed

 The sense of achievement

There is an argument that if people own their things, works with total commitment and ell by
themselves; they tend to excel through economic achievement.

 The freedom to pursue a personal innovation

Private people in business are independent and this enables them to think and initiate new ideas in
their businesses e.g. new packaging, very new products, improved product, new way of delivering of
the product etc

 Desire to gain social standing as achieved by entrepreneurs

People run for business opportunities with a drive of getting benefits through creating good names in
the society. I.e. they are normally at the service side of the business.

PUSH FACTORS

These are factors that forcefully push people into doing business. They are mainly brought about by
frustrations in life.

1. The limitations of financial rewards form the conventional jobs

Most job are restricting financial payments/rewards to works. In such a case, workers get frustrated
and this makes them to try other options and if the same problem prevails, they go away with getting
employed and they become self employed.

2. Being unemployed in the established economy

The economy with open chances for people employment may make an individual search for a job for a
long rime but all in vain. As the last resort the individual may decide to start up his business activity
and be self employed.

3. Job security
Limitations at ones place of work may indicate a lot of uncertainties about ones future with the job.
This may force somebody to look for a safer alternative which may be to employ him-self.

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BY AMBROSE TUBENAWE 0772467417 tubenawea@yahoo.com
 Entrepreneurship Development (DAF – MUBS)

4. Career limitations and set backs in a conventional job

People at their places of work are driven by a number of ambitions e.g. promotions, increased pay
bigger responsibilities which may not come along ones way and they end up becoming fictions. This
may make one to leave employment and start up his business.

5. Inability to pursue a personal innovation on the job

Some organisations have open chances to the creative employees in bringing out any development
activity to the benefit of the employer. However ones ma try for that opportunity and fails and ends up
leaving to try out his innovative talents in his own business.

Creative destruction
It is a process of being innovative and implementing innovation. In such a case entrepreneurs undo
the old products i.e. destroy and replace it with a new one or an improved one.

External factors
These affect the business from outside. They affect both positively and negatively.

1. Financial assistance from institutional sources

The availability and accessibility to the different types of loans, credit periods, interest rate levels as
well as collateral security required to advance the loan are some of the affecting factors for an
entereprenual business to boom or to fail to grow.

2. Government help
It could be government’s policy to uplift the economic standards of its people through favourable
macro economic motivators like soft loans, subsidies, tax holidays etc

3. Non governmental organisations help

This can be in form of grants to the business especially the businesses that deal in the products which
are required in improving the quality of life of the people directly e.g. those that deal in the provision
of education and health services.

4. Availability of cheap raw materials

The availability, accessibility and reliability of raw material supplies may affect the business
performance depending on who accesses such inputs on a positive note.

5. High profit margin

In a given industry business firms may be performing at the high profit margin. This may attract many
more prospective firms/business people hence a motivating factor.

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BY AMBROSE TUBENAWE 0772467417 tubenawea@yahoo.com
 Entrepreneurship Development (DAF – MUBS)

6. Encouragement from big businesses

The big businesses could have started as small and through commitment of resources of all categories,
with time expanded. This motivates the small businesses and even those that may wish to start such
enterprises.

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BY AMBROSE TUBENAWE 0772467417 tubenawea@yahoo.com