The effects of motivation as a start-up factor on business performance

Abstract

The study examined the relationship between entrepreneurial motivation and business performance using 500 SMEs in Gauteng province, South Africa. A questionnaire was used to collect data from 500 SME owners. The findings from the survey were modelled through a categorical regression model with business performance as the dependent variable. The level of significance of eight variables out of the twelve variables suggests that motivation be classified as the strongest predictor of business performance. These findings, depicting the magnitude of the business environment in the study area, clearly confirm the positive impact of motivation on business performance.