Veritatis Gaudium: Multidisciplinary Journal of Postgraduate Studies

Entrepreneurial motivation has emerged as a critical factor influencing the performance and sustainability of micro and small enterprises (MSEs). This paper reviews the existing literature on the relationship between entrepreneurial motivation and business performance with particular emphasis on intrinsic, extrinsic, and environmental motivational factors. A systematic narrative review approach was adopted, drawing evidence from peer-reviewed studies sourced from major academic databases, including Scopus, Web of Science, ScienceDirect, Emerald Insight, SpringerLink, Taylor & Francis Online, Wiley Online Library, Google Scholar, and JSTOR. The review reveals that intrinsic motivational factors such as passion, achievement drive, independence, and self-fulfilment enhance entrepreneurial resilience, innovation, and commitment. Extrinsic motivational factors, including financial rewards, social recognition, government incentives, and access to finance, encourage entrepreneurial persistence, investment, and business expansion. Furthermore, environmental motivational factors such as supportive government policies, technological infrastructure, market accessibility, and institutional support create enabling conditions that strengthen enterprise competitiveness and sustainability. The review is anchored on Capability Theory, which explains how motivation enhances entrepreneurs' ability to transform available resources and opportunities into superior business outcomes. The paper concludes that entrepreneurial motivation significantly improves business performance and recommends integrated policy and institutional interventions aimed at strengthening entrepreneurial capabilities, motivation, and enterprise sustainability. Keywords: Entrepreneurial motivation, intrinsic motivation, extrinsic motivation, environmental motivation, business performance, micro and small enterprises.

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