Functions of an Entrepreneur.
Solution
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.
