How the Need for Achievement Theory Drives Successful Entrepreneurship

How the Need for Achievement Theory Drives Successful Entrepreneurship

The world of business is full of stories of successful entrepreneurs who started from scratch and built empires through sheer grit, determination, and perseverance. It’s these success stories that inspire many budding entrepreneurs to take the plunge and start their own ventures. But what drives these successful entrepreneurs? What motivates them to take the risks and make the sacrifices that are required to build a successful business? The answer lies in the “Need for Achievement” theory.

The Need for Achievement theory was first developed by David McClelland, a Harvard psychologist, in the 1950s. According to this theory, people possess an innate desire to achieve success and excellence in their chosen field. Those who score high on the need for achievement scale are more likely to be successful entrepreneurs.

The need for achievement theory is based on three key components – the desire for success, the need for feedback and the need for personal responsibility. Successful entrepreneurs display a strong desire for success and are not content with mediocrity. They set challenging goals for themselves and work relentlessly to achieve them.

Entrepreneurs who possess a high need for achievement also seek feedback on their performance. They are not afraid of criticism and view it as an opportunity to learn and improve. They are open to new ideas, listen to feedback from customers, and constantly seek ways to improve their products or services.

Finally, successful entrepreneurs take personal responsibility for their actions and decisions. They don’t blame external factors for their failures but instead take ownership of their mistakes and use them as learning opportunities.

The need for achievement theory has been extensively studied in the context of entrepreneurship. Numerous studies have found that entrepreneurs who possess a high need for achievement are more likely to succeed than those who do not. Successful entrepreneurs exhibit a strong desire to excel, seek continual feedback and take personal responsibility for their actions.

One example of a successful entrepreneur who embodies the need for achievement theory is Jeff Bezos, founder of Amazon. Bezos set a challenging goal for himself to create the world’s largest online bookstore. He was not content with a small niche market and envisioned a broader consumer base. Bezos took feedback from customers seriously and incorporated it into his business model. He fostered a culture of experimentation, continually testing new ideas and making improvements along the way. Finally, Bezos takes personal responsibility for Amazon’s successes and failures and is always looking for ways to improve.

In conclusion, the need for achievement theory is a key driver for successful entrepreneurship. Entrepreneurs who possess a high need for achievement are driven to succeed, seek feedback and take personal responsibility for their actions. By understanding the need for achievement, budding entrepreneurs can learn from successful entrepreneurs and develop the traits needed to become successful themselves.