Extrinsic motivation

Definition

Extrinsic motivation refers to the drive to engage in an activity for external rewards or outcomes, rather than for the inherent satisfaction or enjoyment of the activity itself. This type of motivation often involves tangible rewards such as money, recognition, or grades, which can significantly influence behavior and goal-setting in various contexts, especially in entrepreneurship where external validation and financial success are critical.

5 Must Know Facts For Your Next Test

1. Extrinsic motivation can lead to short-term performance boosts but may undermine intrinsic motivation if overemphasized.
2. In entrepreneurship, external rewards like funding or accolades can drive individuals to pursue business ventures and innovate.
3. Research shows that combining both intrinsic and extrinsic motivations can create a balanced approach that enhances overall engagement and satisfaction.
4. Extrinsic motivators often need to be aligned with personal values and goals to maintain long-term commitment and effectiveness.
5. Over time, relying solely on extrinsic motivation can lead to burnout or disengagement if the expected rewards do not materialize.

Review Questions

• How does extrinsic motivation influence entrepreneurial behavior compared to intrinsic motivation?
  • Extrinsic motivation can significantly drive entrepreneurial behavior by providing clear incentives such as financial rewards or recognition. Entrepreneurs often pursue ventures not just for passion but also for external validation and economic gain. However, while extrinsic factors can kickstart action and ambition, relying too heavily on them may overshadow the importance of intrinsic motivation, which is crucial for sustained engagement and creativity in business endeavors.
• Evaluate the effectiveness of using extrinsic motivators in developing a personal entrepreneurship development plan.
  • Using extrinsic motivators in a personal entrepreneurship development plan can be effective if they are well-aligned with personal aspirations. For example, setting specific financial targets or seeking public recognition for achievements can encourage accountability and progress. However, it's essential to balance these external rewards with intrinsic motivations, such as passion for the business idea or enjoyment of the entrepreneurial process, to ensure long-term commitment and satisfaction.
• Propose a strategy that integrates both intrinsic and extrinsic motivation in a personal entrepreneurship development plan and discuss its potential impacts.
  • A strategy that integrates both intrinsic and extrinsic motivation could involve setting personal milestones that align with one's values while also establishing external incentives such as rewards for achieving specific goals. For instance, an entrepreneur could set a goal to launch a product that they are passionate about (intrinsic) while also aiming for a monetary reward upon successful market entry (extrinsic). This approach fosters deeper engagement through personal satisfaction while maintaining the drive provided by external validation, potentially leading to greater resilience, creativity, and overall success in their entrepreneurial journey.

Related terms

intrinsic motivation: Intrinsic motivation is the internal drive to engage in an activity for its own sake, driven by personal interest, enjoyment, or fulfillment.

incentives: Incentives are external rewards or benefits offered to encourage specific behaviors or actions, often used to boost extrinsic motivation.

goal-setting theory: Goal-setting theory explains how setting specific and challenging goals can enhance performance and motivation by providing clear targets and a sense of purpose.