Maslows Need Hierarchy Theory and its implications

According to Abraham maslows, an American Psychologist a persons behavior is shaped by many needs. These needs are arranged in order of priority. An individual first tries to fulfill his lower level needs. once they are satisfied, he moves towards the satisfaction of higher order needs. The hierarchy lower to higher order of priority.

A. Physiological needs
This refer to the needs for food, water, oxygen, rest, sleep etc. They exert tremendous influence on human behavior. Enterprise also being a man needs to meet his physiological needs for survival. These physiological drives are directly concerned with the biological maintainence of the organism. The sociophysical environment of our country provides for the satisfaction of primary needs for most persons. Hence he is motivated to work in the enterprise to have economic rewards to meet the basic needs . Like any other individual, an entrepreneur also sufficient resource to meet the physiological needs of himself and his family dependents, so he undertake business venture on small scale and seeks economic rewards from his enterprise in form of profit.
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B. safety and security Needs

These needs find expression in such desire as economic security and protection from physical dangers like sickness etc. The primary motive here is to ensure a reasonable degree of country, order, structure and predictability in ones environment. Meeting these needs require more money and hence entrepreneur is promoted to work more in his enterprise. Like physiological needs, these become in active, once they are satisfied. Such factor create tension in the mind of entrepreneur. In case of serious law and order problem, an entrepreneur either closes his enterprise for the day and even considers shifting it to a safer place. Also he might enter into agreement or contract with purchase of raw material or other such critical issues to face the uncertainty of futures.
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C.Social Needs
Man is a social animal. These needs, refer to belongingness. An individual motivated on this level longs for affectionate relationship with other namely for a place in his family and reference groups. These means the need to be accepted by other , need to be belong, need to receive attention from others. an entrepreneur satisfies these needs by interacting with other entrepreneurs, with employees, etc

D. Ego or Esteem or status needs

These needs refer to self esteem and self respect. The former include desire for perfection, confidence, personal strength adequacy, achievement, independence and freedom. The later include prestige, recognition, acceptance, attention, status, reputation and appreciation. In case of entrepreneurs, the ownership and self control over enterprise satisfies their esteem needs by providing them status, respect, reputation and independence. Desire to be an independent is another ego need. An entrepreneur established an enterprise to satisfy most of his ego needs. Ownership and control of successful enterprise provides him status, personal reputation and sense of independence and achievement.
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E. Self Actualization Need

This refers to self fulfillment. Maslow characterised self actualisation as the desire to become everything that one is capable of becoming. The person at this level tries to exploit his talents, capacities and potentials to the maximum. This needs include the desire for expressing and proving oneself. This are strongest motivating force an entrepreneur. The establishment and successful operation of an enterprise providers him opportunities for self expression, achievement and growth. Becomes pioneers person for specific industry. This theory is based on following principles Principle of deficiency The derived needs motivates behavior or to undertake specific activity in specific way.

a)

b)

Principe of Progression Higher needs become activated only when the lower order needs are satisfied. In this theory needs are arranged in a lowest to the highest hierarchy. The 2nd need does not dominate unless the first is reasonably satisfied, and the 3rd need does not dominate untill 1st two have been reasonable satisfied. This process goes on till the last need. Because human needs are unlimited. For entrepreneur it is mainly social, esteem and self actualizing needs which motivate them to work more and more for satisfying them.