Need for achievement, business goals, and entrepreneurial persistence

Abstract

Purpose – The purpose of the study is to employ the need theory to investigate whether a need for achievement has an effect on persistence behavior among entrepreneurs, and whether a need for achievement and business goals interact to influence such persistence.

Design/methodology/approach – A longitudinal study of nascent entrepreneurs was conducted by a field survey in a metropolitan area of a mid‐western state in the USA. Logistic regression was used to test the hypotheses.

Findings – Need for achievement is found to be positively related to entrepreneurial persistence. Business goals are found to moderate the relationship between need for achievement and persistence.

Research limitations/implications – The time span between the two waves of data collection in the longitudinal study might have been too short.

Practical implications – This study highlights the importance of matching need for achievement and business goals. For complex tasks, a strong need for achievement should be accompanied with moderate business goals if persistence is to occur. Venture capitalists and government agencies can improve entrepreneurial success by keeping a close eye on the match.

Originality/value – Few studies have explored the issue of entrepreneurial persistence. The present study contributes to a better understanding of motivation and other variables that influence entrepreneurial persistence.