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 Weber's 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 Cultural Dimensions. 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.

Connections to other theories

McClelland's work on motivation is a cornerstone of entrepreneurial psychology, linking directly to several other frameworks:

Locus of Control Theory: High achievement motivation is almost always paired with an "Internal Locus of Control." Individuals must believe they control their own destiny to feel a sense of accomplishment from their successes.
Self-Efficacy Theory: While the *Need* for Achievement provides the drive, Self-Efficacy provides the confidence. You may have a high need to achieve, but without the belief in your specific capabilities (Self-Efficacy), you may never launch the venture.
Childhood Adversity Theory: While McClelland focused on positive socialization and high standards, this theory examines how the *lack* of stability in childhood can also forge a powerful drive for achievement and self-reliance as a survival mechanism.
Expectancy Theory: McClelland's "Need" is essentially the "Valence" in Vroom's Expectancy Theory—it explains why the reward of achievement is so highly valued by entrepreneurs compared to others.
Passion Theory: The intrinsic satisfaction McClelland describes is the foundation of Entrepreneurial Passion. Achievement-oriented individuals don't just work for money; they work because they are "harmoniously passionate" about the growth of their idea.

Entrepreneurship Theories

Achievement Motivation Theory of Entrepreneurship