Question

Explain any five functions of an entrepreneur.

Explain the functions of an entrepreneur.

Answer 1

The following are the functions of an entrepreneur:

1. Determination of Objectives: An entrepreneur must determine the business's aims and objectives. There may be a difference between primary and secondary objectives. He can change the objectives based on market conditions.
2. Innovation: An entrepreneur is basically an innovator. He introduces innovation in the range of products, in business processes and also in solving problems. He understands that customers are satisfied only when new products or radically new features in existing products are introduced. Therefore, an entrepreneur is constantly innovating.
3. Development of the Market: The entrepreneur has to find different ways to market the products & services of his enterprise. For this purpose, he may conduct marketing surveys or research to understand the customers’ demand. As markets develop, consumer demand will increase.
4. New Technology: In the global world, there is constant invention of new technology. An entrepreneur has to adopt this new technology to grow the business. New technology may be used to manufacture products, automate business processes, and support sales & marketing. E.g.: The use of social media, such as FB, Twitter, and Instagram, for marketing products & services is a great example of how business enterprises use new technology.
5. Good Relations: The entrepreneur must ensure a healthy work environment is maintained in the workplace. There has to be a good relation between superiors & subordinates. Coordination among employees is the key to success.
6. Organising Funds: A business needs funds continuously to function smoothly. Finance is like blood for the business. The entrepreneur has to find out different financial resources to be able to raise funds. He has to maintain good & honest relations with investors for this purpose.
7.  Taking Decisions: A major part of an entrepreneur’s work is taking decisions. He has to make timely & correct decisions to ensure the success of the business. He should always consider the pros and cons before taking any business decision.