FUNCTIONS OF ENTREPRENEUR
1). Innovation:
Entrepreneurs play a vital role in driving innovation and value in the marketplace. The entrepreneur is responsible for testing markets, inventing new markets and uncovering demands within individual markets. The entrepreneur dynamic is fueled by creativity, competition and the motivation to succeed within a society.
2). Risk taking:
Risk-taking is the most important function of an entrepreneur. He has to pay to all the other factors of production in advance. There are chances that he may be rewarded with a handsome profit or he may suffer a heavy loss. Therefore, the risk-bearing is the final responsibility of an entrepreneur.
3). Organizing function of an entrepreneur:
This refers to bringing together the men, material, machine, money, etc. to execute the plans. The entrepreneur assembles and organizes the abovementioned different organs of an enterprise in such a way that these combine start functioning as one, i.e., enterprise.
4).Staffing:
Staffing involves human resource planning and human resource management. Thus, staffing personnel, sources of manpower recruitment, their selection, remuneration, training and development and periodic appraisal of personnel working in the enterprise.
5) Directing:
The directing function of entrepreneur actually starts the setting up of enterprise. Under the directing function, the entrepreneur guides, counsels, teaches, stimulates and activates his/ her employees to work efficiently to accomplish the set objectives. Thus, directing function of entrepreneur concerns the total manner in which an entrepreneur influences the actions of his / her employees/ workers. It is the final action of an entrepreneur in making his / her employees actually act after all preparations have been completed.
6) Controlling:
Controlling means to see whether the activities have been performed in conformity with the plans or not. Thus, controlling is comparison of actual performance with the target or standard performance and identification of variation between the two, if any, and taking corrective measures so that the target is accomplished.
7) Identification and Selection of Business Idea:
Every intending entrepreneur wants to start the most profitable and rewarding project. The intending entrepreneur, based on his /her knowledge, experience, and information gathered from friends and relatives, generates some possible business ideas which can be examined and pursued as a business enterprise. This process is also described as ‘opportunity scanning and identification’. Then, the generated ideas are analyzed in terms of costs and benefits associated with them. Having made cost-benefit analysis of all the ideas, the most beneficial idea is finally selected to be pursued as business enterprise.
8). Preparation of Business Plan or Project Report:
The entrepreneur prepares a statement called ‘business plan’ or ‘project report’ of what he / she proposes to take up which is an operating document. The preparation of business plan would be very much useful for the entrepreneur to establish his / her enterprise in an effective and smooth manner. Also, it helps the entrepreneurs who intend to apply for financial assistance from the financial institutions and banks for their enterprises
9). Requirement for Finance:
The entrepreneur prepares requirement for funds with its detailed structure. The financial requirement is also classified into short-term and long-term separately. Then, the sources of supply to acquire the required fund are also mentioned. How much will be the share capital in terms of equity and preference shares and how much will be borrowed capital from different financial institutions and banks are clearly determined.
10).Production / Manufacturing:
Once the enterprise is finally established, it starts producing goods or offering services, whichever be the case. Production function includes decisions relating to the selection of factory site, design and layout, types of products to be produced, research and development, and design of the product.
11).Marketing:
All production is basically meant for marketing. Marketing is the performance of those business activities that direct the flow of goods and services from producer to consumer or user. Thus, marketing essentially begins and ends with the customers.
12).Accounting:
The main objective of any business enterprise is to earn profits and create wealth. Whether the business is fulfilling its objective or not is ascertained through accounting.
CLASSIFICATION/TYPES OF ENTREPRENEURS
Innovative entrepreneur:-
An innovative entrepreneur is one who introduces new product, new service or new market. An innovative entrepreneur is also known as modern entrepreneur. An innovative entrepreneur can work only when a certain level of development is reached. These entrepreneurs introduce new changes and develop the business after a certain level of development is reached. They invent new products. Such kind of entrepreneurs can be seen in developed countries, as large sum of money can be diverted towards research and development purposes.
Adaptive entrepreneur:-
Adaptive entrepreneur is one who adopts the successful innovations of innovative entrepreneur. These entrepreneurs imitate(नक़ल करना ) the techniques and technologies innovated by others. These entrepreneurs can be seen both in underdeveloped and developing countries. They also make small changes in relevance to their market environment.
Fabian entrepreneur:-
A Fabian entrepreneur is one who responds to changes only when he is very clear that failure to respond to changes would result in losses. Such entrepreneurs do not introduce new changes. They also do not desire to adopt new methods. They are very shy and stick to old customs. They are very cautious.
Drone entrepreneurs:-
Drone entrepreneurs do not make any changes. They refuse to utilize the opportunities and may also suffer losses. They are very conventional. They refuse to introduce changes. They even make losses but avoid changes. Sometimes they may be pushed out of the market.
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