Results of Testing Impact of Motivation of Nascent Entrepreneurs on Sales Growth of Entrepreneurship

Abstract

Entrepreneurship has a significant impact on the economic growth of countries. In order to promote entrepreneurial activities in countries and to encourage more people to start their business, the motivation of entrepreneur has to be understood. Entrepreneurships that have the highest impact on economic growth also have the highest growth in revenue. The study analyses the relationship between different motivational factors and the revenue growth in the first 3 years after the company was founded. The relationship is tested by multiple regression analysis and is based on the PSED II dataset. The need for achievement has significant impact on the revenue growth between year 1 and 2 as well as between year 2 and 3. The impact of the need for achievement on the revenue growth is positive first and negative on the revenue growth between 2 and 3. Other motivational factors like the desire for independence, desire for social recognition and desire for financial success have no significant impact on the revenue growth. The findings of the study are recommended for governmental institutions to create a framework for people with the dominant motivational factor "need for achievement”, in order to become entrepreneurial active.