A Study on the Motivational Factors Behind New Venture Creation in Gautam Buddha Nagar

Abstract

Purpose: The study aimed at exploring the motivational factors that influenced a new business establishment among entrepreneurs in MSMEs
in Gautam Buddha Nagar.
Methodology: The study obtained primary data using a structured questionnaire containing 17 items related to motivation which were handed
out to 400 MSME entrepreneurs. Factor analysis was the first step in uncovering the latent factors of motivation and then, as the second step,
cluster analysis was implemented to classify the entrepreneurs into different motivational groups. ANOVA was applied to examine the differences
in entrepreneurial behavior across the cluster groups.
Results: The study revealed four dominant motivational aspects: Need for Achievement and Impact, Need for Recognition and Innovation, Need
for Independence and Self-Development, and Need for Financial Stability and Work-Live Balance, and five entrepreneurial clusters (StabilityOriented, Recognition-Driven, Independent Growth-Oriented, Balanced and Pragmatic, and High-Risk Competitive) were recognized. The
research pointed out that entrepreneurs fueled by achievement, innovation, and independence showcased greater business persistence, and
financial stability would thus use more conservative strategies.
Implications: The study reveals that one of the main factors for starting a business was making money, and at the same time emphasizes that
different kinds of entrepreneurs need different types of government support and incubation measures.
Originality/Value: The study provides insights that are specific to the context regarding the different kinds of motivations and their effects on
the sustainability of ventures in the case of an emerging economic region.