Usefulness of Cognitive Theories of Motivation - Essay Example

Usefulness of Cognitive Theories of Motivation Introduction Enterprise behavior can be acquired through teaching and experience. Region has an important role in enhancing creativity and innovative thinking where business and entrepreneurship management competencies are incorporated. According to Zimmer, (1986), global economists have raised conceptual arguments for the relationship between regional cultural characteristics and entrepreneurship behaviors. International economists concede that regional culture and other domains presented by political, social and economic characteristics of a region have direct influence on entrepreneurship behavior development. Observations made by economists indicate that entrepreneurial activities are deemed to be supreme sources of technological innovations hence it is important to understand the influence of regional culture on entrepreneurship activities. Recent surveys on entrepreneurship reveal that Wales has been doing quite well. This success is associated with regional focus on entrepreneurship behavior and development (Aldrich, 2000). Keywords Cognitive - It is the process of one being aware and able to learn and judge. It is commonly taught in psychology, linguistics and philosophy. Theories - These are set of statements devised to elaborate a phenomenon which has been reviewed more than once. The phenomena should be one that has been universally accepted and can be used to predict occurrence of natural phenomena. Entrepreneur - This is an individual who runs a small business thereby assuming all the risks and rewards. It is the responsibility of an entrepreneur to lead the business. Entrepreneurship - It is an act where an individual runs a small business and assumes all the risks and rewards. Usefulness of Cognitive Theories of Motivation towards Development of Enterprise Behaviors According to Aldrich (2000), success of entrepreneurs depends on their willingness to become what they want. In the pursuit of entrepreneurial opportunities, individual willingness is essential during decision-making upon discovery of these opportunities. This aspect matters a great deal when an individual is pursuing resources and when designing mechanisms to be used in exploiting the discovered opportunities. Human motivations should accompany willingness for the entrepreneurial activities to be effected. Cognitive theories of motivation are very useful during decision making and it influences the way one undertakes the enterprising process. They affect locus of control i.e. individuals’ beliefs that their actions affect the outcomes (Aldrich, 2000). These theories help individuals to explore entrepreneurial related phenomena hence enabling one to address important issues of entrepreneurial activities. Cognitive approaches are very useful because they articulate rigorous and testable ways of explaining individual roles in the entrepreneurial activities. Research reveals that cognitive theories are the most effective tools through which an individual can explain entrepreneurial phenomena (Baum, Locke, & Smith, 2001) Case Study of Wales- How a region might enhance the extent of enterprising behavior amongst its population In examining Wales’s economic landscape, it is clear that cultural practices influence the number of entrepreneurs within a given region. Cognitive perspective also reveals that different regions have different number of entrepreneurs depending on attitudes and strategies of a specific government in influencing individuals to start new businesses. Through development of cognitive approaches, individuals in Wales are more prolific in starting new businesses as compared to individuals living in Ireland. According to Global Entrepreneurship Monitor report, Wales’s population has a high propensity to start new businesses which sharply contrasts with Ireland population who are not willing to start new business ventures within their region (Aldrich, 2000). Wales has experienced substantial economic growth due to increase in the number of entrepreneurs. The region’s Entrepreneurship Action Plan is progressing well and this has contributed immensely to the success of many entrepreneurs. Research confirms that the regional entrepreneurial cognition has contributed to multidisciplinary view of great entrepreneurs. Wales’ government has put in a lot of efforts in synthesizing wealth creation through active entrepreneurs. It has strategies that foster discovery and exploitation of specific entrepreneurial activities by the citizens. Discovering of opportunities is affected by information availability. As asserted by economists, information possession affects the probability of an individual discovering and exploiting particular opportunities. The Global Entrepreneurship Monitor (GEM) reports indicates that Wales’s government has established a drive aimed at changing the attitudes of the population towards entrepreneurship practices (Aldrich, 2000). Through its Entrepreneurship Action Plan, the government has presented business and entrepreneurship as the best options in which the population can improve their lives. The government efforts in creating conducive business environment has attracted many investors and entrepreneurship throughout the world. The government has influenced its people to have positive attitude towards entrepreneurship. Investors in the region are motivated to venture into more business opportunities. Even though personal characteristics of an individual play a greater role in shaping an entrepreneur, the government has a role in influencing decision-making processes by which the very same individuals act to enhance growth of enterprises (Bridge, & Martin, 2008). Entrepreneurship is embedded within education system in the region. As children grow, they are exposed to formal education in which entrepreneurship knowledge is the bottom line. This changes the perceptions of individuals at their early stages. Entrepreneurship is affected by individual perceptions on business environment. The government strives to ensure that all citizens across the board access relevant information about business investment. Students at higher learning institutions are also are taught entrepreneurial skills and knowledge. It is through education that the government has widened the horizons of potential entrepreneurs in the region. It has created innate entrepreneurial characteristics amongst its population by exposing them to new business ideas and providing them with safe environment in which they can test entrepreneurship business opportunities. Cognitive theories have been used by Wales’s government to influence its population into developing positive attitude towards entrepreneurial activities. It uses motivational strategies in influencing its population into becoming optimistic entrepreneurs. Through entrepreneurial teachings in schools, students have been made to believe that entrepreneurship remains the best option of improving living standards. It is imperative to note that it is easy to influence individual attitudes than individual traits as explained in the cognitive theories (Amit, Meuller, & Cockburn, 2003). Unlike Ireland’s population, people in Wales have high expectation on entrepreneurial activities due to effects of government’s active policies. The government has active intervention policies which have changed heuristic thinking amongst its population. This has shaped individual experiences. In addition, government interventions changes attitudes of individuals towards investment and this represents an important cognitive component. Coordinated national programmes that have been established by the government support individuals in meeting their entrepreneurial needs and demands. Consequently, these programmes have stirred up many people to venturing into business opportunities. Developing enterprises is the main key policy objective of Ireland government. This policy is bounded by government objectives of increasing national GDP. Even though the government has worked considerably well to ensure that the policies are in effect, the number of entrepreneurs in Ireland is still very small as compared to other regions in British land. People living in this region believe that they lack entrepreneurial skills to set up business (Fielden, & Marylin, (2001). According to GEM report, the level of early stage entrepreneurial activity is very high in Wales whereas very low in Ireland. The 2006 data released by GEM confirmed that there is a big gap between the levels at which young people engage in business activities in the two regions. Wales has been stimulating entrepreneurships at all levels and this is depicted by incorporation of these activities in the education system. Ireland has been faced with a problem of stimulating entrepreneurship activities among the young generation (Amit, Meuller, & Cockburn, 2003). The inability of the government to embed the entrepreneurship practices within its educational core activities has led to small young people venturing into business. The extent to which entrepreneurship activities are based on necessity differs in the two regions. Ireland government has not initiated diverse entrepreneurial activities hence limited opportunities are available to its citizens. Ireland government does not respond quickly to the demands and needs of individuals who want to venture into business. Data analysis from GEM shows that small investors experience many problems in accessing finances in Ireland which contrasts with the financial situation in Wales. The report further indicates that Wales’s entrepreneurs are not faced with as many difficulties in accessing finance whenever they want to start business as evident by significant increase in the value of deposits held in bank accounts of small investors. This implies that the government is committed to ensuring prosperity of the new and small businessmen. The government can influence the attitude of individuals towards core business activities through sound financial support. When the government supports its citizens financially, they will get motivated and strive to achieve the best for themselves by exploiting available business opportunities (Amit, Meuller, & Cockburn, 2003). Building on the 2006 report on enterprise behaviors in Wales, we clarify that business training matters a lot in motivating individuals to explore new business opportunities. As mentioned before, Wales’s education system has created positive association with business entrepreneurial activities. Ireland government has failed to initiate enterprise training as a strategy to motivating individuals at all levels of education to engage in entrepreneurial activities. The report indicates that individuals who have undergone enterprise training have significantly explored business opportunities. The Ireland government expects the number to increase from 2.9 % to 9.4 % due to intensification of enterprise training programs in the region. The response in the number of individuals starting new businesses is almost similar in the two sides (Baum, 1998). Ways in which Wales can Enhance Current Enterprise Provision Wales can enhance its current enterprise provision through provision of grants to potential entrepreneurs. These sources of finance help individuals to establish their small enterprises and more so use the funds for development during the initial stages of their business. It is recommendable that the government offers funds to private individuals under little or no security. This is an encouragement to small businessmen who cannot access funds that easily. The government should establish Grant for Business Investment scheme that provides funds to small entrepreneurs which they can use to obtain plant and equipment or buy premises. These grants should be monitored well to ensure that they help expand businesses. Entrepreneurs should use this money to modernize their business operations in order to achieve efficiency and effectiveness (Amit, Meuller, & Cockburn, 2003). In order to increase the number of entrepreneurs, the government should provide necessary support to upcoming entrepreneurs who require as much backing as possible. It is the role of the government to ensure there is enough security in the region. Lack of security in a region reduces the number of investors. Many people are willing to start up new businesses or invest in already existing ones when security prevails and the vice versa is true. The government can improve its current enterprise provision through Train to Gain educational programs. These provide advice on all aspects of entrepreneurship and commercial management. Any entrepreneur should be allowed to join these training programs. The government should appoint trainers in all corners of the region so that every individual is able to conduct skill assessments (Zimmer, 1986). Starting of enterprises has been a very difficult in most countries around the world. It is therefore the duty of the government to ensure that potential investors are not impeded from exploring new ventures due to legal formalities and bureaucracy. The country’s business environment should be pampered by favorable legislative procedures. According to GEM reports, United Kingdom is the only region in the world where one can start a business with most ease due few legal formalities. Wales’s government should ensure that no one is discouraged in starting up a new business due to legal formalities (Amit, Meuller, & Cockburn, 2003). Conclusion Wales has achieved substantial economic growth due to its high number of small and medium enterprises. Government practices in encouraging small enterprises have contributed immensely towards growth and development of the economy. The planned strategies to create more and better training programs, more funds with limited securities and few legal formalities is expected to attract more entrepreneurs. It is therefore predicted that the region will have the highest number of entrepreneurs by the end of 2012 (Aldrich, 2000). References Aldrich, H. (2000). Organizations evolving. Beverly Hills: Sage Publishers, 28-56. Amit, R., Meuller, E., & Cockburn, I. (2003). International small business journal, 2(3), 13-25. Babb, E. M., & Babb, S. V. (1992). Psychological Traits of Rural Entrepreneurs. Journal of socio-economics, 21, 353–362. Baum, R. (1998). The Relation of Traits, Competencies, Vision, Motivation, and Strategy. Management journal, 34(3), 129-231. Baum, R., Locke, E., & Smith, K. (2001). A multi-dimensional Model of Venture Growth. Academy of management journal, 44(2), 292–303. 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