Functions of an Entrepreneur. - Economics


Functions of an Entrepreneur.



Meaning:- An entrepreneur is one who organizes the factors of production and takes necessary actions to run the business.

The main functions are as briefly stated as follows:-

1. Initiates Business Enterprises:-

The foremost function of an entrepreneur is that he in initiates the business enterprise. For this purpose, he performs the following:

  • Generates ideas to set up a business unit.
  • Plans for the setting up of business unit.
  • Organises the factors of production- land, labour, and capital.

2. Risk Bearing:-

The entrepreneur assumes the risks of his business. A person who can take risk can become an entrepreneur. Risk taking is the heart of entrepreneurship. Those who are not inclined (of a mind) to take risk cannot become entrepreneurs. It is to be noted that successful businessman take calculated risks.

3. Decision Making:-

An entrepreneur is required to take several decisions. The decisions in respect of

  • Location of the business unit, Selection of employees, Obtaining of funds, Productiondecisions.
  • Marketing and distribution decisions.

4. Coordination:-

An entrepreneur performs the functions of coordination. He coordinates the working of the business enterprise. He has to coordinate the various functional departments such as production, marketing, finance, etc.

  Is there an error in this question or solution?
2014-2015 (March)


Video TutorialsVIEW ALL [1]


      Forgot password?
Use app×