Why People Engage in Business
Human behavior, involves a complicated process of stimulus-and-response system to many factors and motives. People engage in business because of the following reasons:
- Service to the community
- Social approval, etc..
Businessmen want to profit, serve the community, and achieve prestige because of certain stimuli, and these are the motivational factors. These factors can be clearly explained and directly linked with the theory postulated by Abraham W. Maslow, an industrial psychologist. According to his Hierarchy of Needs theory, there are five needs of men that are to be satisfied perpetually in the following order:
- Physiological or biological need – the essentials for survival, such as the need for food, clothing, shelter, sex, air, water
- Safety need – the desire for security, stability, or protection against danger
- Social need – the need for group belongingness, affection, love and friendship
- Ego or self-esteem need – the need for self-recognition or group satisfaction
- Self-fulfillment need – the need for the realization of personal goal potential or ambition.
The satisfaction of these needs of men can be properly explained by the use of a ladder.
Maslow’s Ladder of Needs