2. Psychological Environment:
Psychological Environment: Inspiration for achievement prepares an entrepreneur to set higher goals and achieve them. The important psychological factors influencing entrepreneurial growth may be outlined as below:
a. Need for Achievement: - Need for achievement means the drive to achieve a goal. People having need for achievement will be so much self – confident that they do not believe in mere luck. If an individual has need for achievement, he will become a successful entrepreneur.
b. Personal Motives: - These have been found to be one of the crucial factors responsible for entrepreneurship amongst individuals. Bill Gates dreamt that one day he would become the richest person. His dream became a reality later.
c. Recognition: - Many people become successful entrepreneurs just for getting recognition from others.
d. Need of Authority: - ‘Need of authority’ will inspire men to work. When they become entrepreneurs, they can exercise authority over managers, employees etc.
e. Withdrawal of Status/Respect: Withdrawal of status respect of a group has impact on the emergence of entrepreneurship. Four types of events can produce status withdrawal-
• The group may be displaced by force.
• It hay has its valued symbols denigrated/defamed.
• It may drift into a situation of status inconsistency.
• It may not be accepted the expected status on migration in a new society.
Withdrawal of status respect would give rise four possible reactions and create four different personality types-
a. Retreatist: He who continues to work in a society but remains different to his work and position.
b. Ritualist: He who adopts a kind of defensive behavior and acts in a way accepted and approved in his society but no hopes of improving his position.
c. Reformist: He is a person who generates revolution and attempts to establish a new society.
d. Innovator: He is a creative individual and is likely to be an entrepreneur.
