Critical Evaluation of the Relationship between the Need for Achievement and Entrepreneurship Performance: Risk-Taking Propensity, Entrepreneurial Independence and Motivation

Abstract

To understand and explain entrepreneurial behaviour in businesses, previous studies observed economic factors, but the little emphasis was placed on the value of the entrepreneur as an individual in the business venture itself. However, it was an oversight to disregard the individuality of the entrepreneur’s personality and motivation for being an entrepreneur. Against this background, the study aimed to evaluate the relationship between the need for achievement and entrepreneurial performance thereby looking at some personality traits (risk-taking propensity, independence and motivation) of entrepreneurs in the Chris Hani District Municipality. The need for achievement as a personality characteristic was evaluated with the other characteristics. This literature suggests that the need for achievement could influence entrepreneurial performance. The study employed a descriptive research paradigm, and a stratified sampling technique was used to collect data from the participants. Data were collected using a questionnaire that was administered to 108 small- and medium-sized enterprise owners and managers in the Chris Hani District Municipality. The findings of this study indicated that the need for achievement has the potential to enhance entrepreneurship performance. Moreover, this study found that risk-taking, independence and motivation are the major components of the need for achievement as they serve as predictors of entrepreneurial success.