Functions of an Entrepreneur
An entrepreneur is a person who creates something new and assumes the risks and rewards associated with that innovation. An entrepreneur performs all the required functions from the genesis of an idea up to the establishment of an enterprise. The entrepreneur is usually seen as an innovator, a source of new ideas, goods, services, and business/or procedures.
However, the functions of an entrepreneur are discussed below:
Risk taking: The first task of an entrepreneur is to create a new thing where risk is always involved. Thus the primary function of an entrepreneur is to take the risk.
Organizing: An entrepreneur combines land, labor, capital, and other resources to produce a new product. Thus he might be called as a good organizer.
Innovation: Another function of an entrepreneur is innovation. An entrepreneur introduces new goods, inaugurates new methods of production, discovers new market, search for a new source of materials.
Taking initiative: Entrepreneur takes initiative to do something new. He also bears all risks associated with that initiative.
Financing: An entrepreneur collects himself collects his necessary funds for his enterprise. He himself identifies the sources of his funds.
Administering and Management: When an entrepreneur establishes a new enterprise then he/she is obliged to manage that organization and run it properly. He/she performs all necessary managerial activities like planning, organizing, directing, controlling etc.
Communication: An entrepreneur always maintains good relations and communication with different parties like customers, suppliers, employees, Government, competitors etc.
Marketing activities: Entrepreneur distributes the products to the actual customers. Thus he/she needs 10 perform marketing functions for continuing his business.
Idea generation: Entrepreneurs frequently create various new ideas regarding new products developed to fulfill the changing demands of the customers.
Procuring appropriate technology: The economic development of a country largely depends upon large-scale production. Only technology can ensure it. Entrepreneurs establish new ventures and introduce new technologies even collecting from abroad.