Write short note on Functions of entrepreneur
The entrepreneur performs vital functions. The main functions are as briefly stated as follows:
- 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.
- 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.
- 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.
- 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.
- Combines the factors of production: -The entrepreneur has to combine the factors of production in such a way that he gets maximum return on investment. Therefore, there should be a maximum return on investment. Therefore, the should be a proper mix of land, labour and capital to get highest possible returns.
- Innovation: - The entrepreneur should be imaginative and innovative. He should be dynamic in nature. Therefore, a successful entrepreneur is always on the book out for
- New ideas, new products, new processes or methods, etc.
- Maintain Relations: -An entrepreneur has to maintain good relations with several parties such as:
- Government authorities,
- Customers, Suppliers,
- Other relevant section of the society.
Concept: Function of Entrepreneurship Development
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