Contributions Of David McClelland To Entrepreneuship Development
In my previous article,I have talked about some of the contributions of Joseph Schumpeter to entrepreneuship development generally. In this article, I want to look at the contributions of David McClelland to entrepreneuship Development . Follow me as we will focus attention on that in this article.
David McClelland in his famous works ‘ The Achieving Society’ (1961) and ‘ Business Drive and Natural Achievement ‘ gave a psychological explanation for the development of entrepreneuship my He wrote that the need for achievement ‘N Arch’ by some individuals is the greatest motivation for entrepreneurship.
According to him, individuals with ‘N Arch’ exhibits entrepreneurship behaviour. The ‘N Arch’ is a relative personality characteristics that is influenced by middle childhood experience and society positive orientation towards free enterprise, wealth creation and personal achievement .
Belief system , social orientation and economic ideology have tremendous impact on an individual need for achievement. Jew believed that they are a chosen race by God and should dominate their environment in any endeavour .
The ibo Ethic group in Nigeria has a similar orientation and this explains why they are very successful in business. Also, capitalist societies of Western Europe , the United State Of America , Japan e.t.c tend to produce many individuals with ‘ N Ach’ than socialist or state controlled economies of defunct USSR Eastern Europe, and nationalist or ethnic inclined societies of many third world countries. Capitalist societies encourage Entrepreneurship through social and economic beliefs in individualism , competition , and protection of private properties. monopoly is usually discouraged in capitalist economies.
In socialist countries , free enterprises and private ownership of business are not usually encouraged. Collective ownership or state control of means of production prevails over private ownership. This will likely not encourage Entrepreneurship as protection of private properties , individual rewards for innovation and risks taking are not guaranteed.
Individuals with training or experience in small business , financial management or leadership tend to have a higher ‘ N Ach’ and usually display Entrepreneural behaviour. A research conducted by McClelland and David Winter in India revealed that social, ethnic or traditional beliefs did not play any significant role in rising entrepreneurship activities in India. Rather, it was discovered that those trained in small business motivation programme at the Small Industries Extension Institute of Hyberdad in1964 were involved in active entrepreneurship activities later on.
Therefore, prevailing environmental conditions , positive attitude towards solving problems , individual’s belief in having control over their destinies or life situations , acquisition of business skills and knowledge , can inspire or motivate an individual to have passion for entrepreneurship; this, the development of individual ‘N Ach’ as well as the exhibition of entrepreneuship behaviour.
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