What Is The Impact of Need For Achievement Theory?






The following analysis can reveal the impact of need for achievement in accelerating entrepreneurial urge among individuals


Twin characteristics of entrepreneurship: McClelland pointed out the twin important characteristics of entreprenerurship that govern the economic behavior of a person to become entrepreneurial. They are;

  1. Doing things in a novel & excellent manner.
  2. Decision making under uncertainity.


Belief in personal accomplishment: According to his theory, ’n Ach’ or need for achievement refers to the need for personal accomplishment by the person through excellence. This category of persons is fond of shouldering personal responsibility. They are generally risk takers & try to be winners all the time. High achievers aim at personal achievement rather than the reward of success. Persons with high need for achievement behave in the entrepreneurial way.


Psychological factors for entrepreneurial motivation:  Need for achievement depends upon entrepreneurial motivation. This need motivates the persons to take risk. The following psychological factors are responsible for the growth of entrepreneurial motivation.


  1. Need for achievement through performance evaluation.
  2. Goal setting & problem setting.
  3. Strong desire to undertake personal responsibility.
  4. Spirit to achieve success.
  5. Anticipating success.
  6. Concrete measures of task performance.
  7. New instrumental activity.
  8. Feeling of personal accomplishment.
  9. Organizational as well as decision-making skills.


According to him ‘n Ach’ is the precursor of economic growth: McClelland applied his technique of ‘n Ach’ to study the relationship between motivation & economic development. He founded that it was the ‘n Ach’ factor which was a precursor of economic growth both in socialistic & capitalistic system of economy. Entrepreneurship, thus, becomes the pivot around which need for achievement & economic growth to revolve.


Lack of ambition in less developed countries: Ambition is the basis on which McClelland’s ‘n Ach’ greatly depends. In less developed countries (LDC’s) achievement motivation of people is lower than that of developed countries because of low level of ambition.



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