Achievement Motivation Theory of Entrepreneurship
What is the Achievement Motivation Theory of Entrepreneurship?
Harvard psychologist David McClelland developed the Achievement Motivation Theory in his book entitled The Achieving Society (1967). McClelland sought to explain why some societies are more economically successful than others.
For answers, he looked at the entrepreneurial behaviors of individuals, which he thought were key to the development of all economies.
Understanding the Need for Achievement
According to McClelland, entrepreneurs do things in a new and better way and make decisions under uncertainty. Entrepreneurs are characterized by a need for achievement (or an achievement orientation), which is a drive to excel, advance, and grow.
By focusing on a particular psychological need, he was able to challenge the prevailing Great Man Theory and religious theories of entrepreneurship. He believed that entrepreneurship is learned and that such learning can be encouraged fruitfully.
Comparing the Three Drivers
The need for achievement contrasts with two other distinct needs:
- Need for Power: A drive to dominate others in all situations.
- Need for Affiliation: A drive for close personal relationships.
However, power and affiliation may help with achievement and can be considered valuable resources that help satisfy the need for achievement.
Origins of the Mindset
McClelland believed that an achievement orientation develops during middle childhood through family socialization emphasizing high standards, self-reliance, and less dominant fathers. It manifests in behaviors such as:
- Problem-solving
- Feedback seeking
- Goal attainment
- Risk-taking
Controversy and Evidence
McClelland argued that the need for achievement is partially culturally determined. Societies lacking in achievement-oriented individuals are expected to have lower average incomes.
Social Engineering Concerns
A controversial implication is that lower-performing economies can be boosted by adopting social policies that alter socialization processes to encourage achievement motivations. This can be criticized as social engineering, as some cultures may have different value structures. For instance, well-being, simplicity, and tradition may be more valued in some cultures than innovations.
McClelland noted, however, that achievements are not to be confused with outcomes such as wealth. The need for achievement is satisfied intrinsically with a feeling of personal accomplishment. Thus, even in a culture that values human development, an individual may feel achievement by improving social conditions.
Does the theory hold up?
Evidence for the theory seems fairly strong:
- Collins et al. (2004): A meta-analysis confirmed a positive relationship between need for achievement and entrepreneurial entry/performance.
- Stewart and Roth (2007): Found meta-analytic evidence that the need for achievement is stronger in entrepreneurs than in managers.
The limitation of the theory is that many non-entrepreneurs also display a strong need for achievement (satisfied through other careers). Thus, it offers only a partial picture. Other competing psychological theories include:
- Rotter's Locus of Control
- Risk Taking Propensity
- The Big Five Personality Traits
Further Reading
Collins, C. J., Hanges, P. J., and Locke, E. A. (2004). The relationship of achievement motivation to entrepreneurial behavior: A meta-analysis. Human performance, 17(1), 95-117.
McClelland, D. C. (1967). Achieving society. Simon and Schuster.
Stewart, W. H., and Roth, P. L. (2007). A meta‐analysis of achievement motivation differences between entrepreneurs and managers. Journal of Small Business Management, 45(4), 401-421.
