THE INFLUENCE OF INDIVIDUAL NEEDS ON DISTINCT ENTREPRENEURIAL MOTIVES

Author

Megan B. Cook, Southern Illinois University CarbondaleFollow

Date of Award

8-1-2025

Degree Name

Doctor of Philosophy

Department

Business Administration

First Advisor

Karau, Steven

Abstract

Individual needs and the desire to fulfill such needs are key drivers of decision-making. In entrepreneurial ventures, the individual needs of founders shape the mission and direction of their firms. The motives for starting a business and the preference for social or commercial entrepreneurship are hypothesized to reflect individual, psychological needs of aspiring entrepreneurs. According to McClelland’s Human Motivation Theory, individuals are motivated to work when their need for achievement, need for affiliation, and need for power are activated. These needs may be activated as individuals recognize, either consciously or subconsciously, entrepreneurship as a means to fulfill such needs. This study examines the role of need-based motivation in entrepreneurial decision-making, focusing on how specific psychological needs influence both entrepreneurial motives and venture preferences. The current research contributes to literature on person-entrepreneurship fit by investigating how personal psychological needs shape entrepreneurial behavior. Hypotheses regarding gender and preferences for social and commercial entrepreneurship are also examined using Role Congruity Theory. Specifically, it was hypothesized that women will prefer social entrepreneurship, while men will be more oriented towards commercial entrepreneurship. Previous research has primarily focused on established entrepreneurs, often providing retrospective insights and leaving the aspiring entrepreneur less explored (Asante and Affum-Osei, 2019). Aspiring entrepreneurs were recruited via Prolific to take two self-administered, computer-based surveys. Previously validated Likert-type scales were used, measuring the needs for achievement, affiliation, and power, as well as entrepreneurial motives based on the Panel Study of Entrepreneurial Dynamics (PSED) and the work of Carter and colleagues (2003). The initial survey assessed participants’ levels of general psychological needs. A follow-up survey measured their entrepreneurial motives and their preferences towards social and commercial entrepreneurship. Multiple hierarchical regression analyses, correlations, and t-tests were used to test the hypotheses. Results indicated that individual needs significantly influence entrepreneurial motives. Specifically, need for achievement predicted self-realization, innovation, and independence motives; need for affiliation predicted recognition and role-based motives; need for power and personalized need for power predicted financial success and recognition motives; and socialized power exhibited significant relationships with self-realization motives. Socialized and personalized power further diverged in their relationships with motives, highlighting distinct patterns of association for each power type. Notably, although most psychological needs did not predict preferences for commercial or social entrepreneurship, socialized power did positively predict a preference for social entrepreneurship. Additionally, gender differences were observed, such that women favored social entrepreneurship while men preferred commercial entrepreneurship. These findings underscore the nuanced role of psychological needs in shaping entrepreneurial motives and the importance of distinguishing between types of power motivation. By understanding the role of individual needs in entrepreneurship, this study sheds light on the motivational forces that drive individuals to pursue specific entrepreneurial ventures. It also emphasizes the need to differentiate between subtypes of power motivation in entrepreneurial contexts and highlights implications of gendered expectations on entrepreneurial decision-making.The research contributes to both theory and practice by integrating motivational theory with entrepreneurship literature, offering insights into person-entrepreneurship fit and suggesting potential pathways for personalized entrepreneurial development and support programs. By advancing a more psychologically grounded understanding of entrepreneurial decision-making, the study provides a foundation for interventions aimed at improving entrepreneurial fit and additional outcomes. Future research can build on these findings to further disentangle the complexities of the entrepreneurial journey.