Functions of an Entrepreneur
There are numerous theories on the role of an entrepreneur due to their complexities. The roles of an entrepreneur may differ based on the time frame, the level of economic growth, the source of funding , the sizeof the business, etc.
Functions of an Entrepreneur
Here are the top aspects of being an entrepreneur in the world of business:
1. Promotional Functions of an Entrepreneur
The most important responsibility of entrepreneurs is to establish and market an organization after evaluating the business’s potential.
“To know the opportunities and to establish an industrial unit on the basis of this knowledge are the two functions of the entrepreneur.”
Here are the most important aspects of advertising the Enterprise:
When conceiving business concepts and ideas.
To gather the necessary details and information in relation to the concept, and to assess the viability and effectiveness of the idea.
For predicting your economic analyses.
Select the proper ownership (leadership or joint ownership in partnership, corporate and companies like. ).
What are the dimensions and characteristics that define an Enterprise.
Establish the mission of is being carry out by the Enterprise.
Determine the location and address for the entrepreneur Enterprise.
To prepare plant layout.
Plan financial plans it is important to do an estimate the capital requirements.
Registration and completion of any other formalities that are require by law.
In order to organize the entrepreneur infrastructure, resources and infrastructure.
To decide about the structure of organization within the organisation.
The selection of the equipment and the manufacturing process.
Conducting market research.
To start a business.
2. Risk Bearing Functions
Another major responsibility of entrepreneurs is managing risk. In all types of businesses, large or small, risk is an integral part of business.
Without the risk of assuming the operation of the business cannot be imagine as a possibility. The risk is tied to capital.
In today’s world of business, various types of uncertainties and risks are present. Certain of these risks are classified as risks that are secure by taking insurance against the aforementione risks, such as fires, thefts, dacoity floods or earthquakes and tsunamis, etc.
But, there are risks that aren’t known are risks that aren’t predicted or covered, and therefore must be accepted by the business. Examples include:
The risk is caused by the fluctuation in demand
Risques caused by competitive pressures (changes in fashion, taste and demand).
The risks associated with the fluctuation in the prices of different sources and the.
Risikens of changing Government policies.
The risks that result from the substantial fluctuations in the context of business.
Risques of huge technological changes.
Human interactions and risks as well as inefficiency.
Entrepreneurs have to make a variety of business decisions on the basis entrepreneur on forecasts, foresight and predictions.
If any plan or decision of the businessperson isn’t profitable, the businessperson may be held accountable for a huge loss.
Thus, we’re in a position to say “The functions of an entrepreneur are to be safe against the known risk and to be the unknown risky wisely.”
3. Contributing to Social Development
Entrepreneurs must be a part of the overall structure of society. They must make the best use of resources from the social sector as well as increase the number of employment opportunities available and meet his social obligations to diverse segments of society.
4. Function Relating to Management, Organisation, and Control
Entrepreneurs must perform various duties related to management, control and organization, in addition to the responsibility of promoting their company.
The successful running of the business in the case of sole ownership of a company where the owner is typically the proprietor as well as the manager.
So, he is required to perform many different tasks entrepreneur. There are other forms of ownership for companies like Company, State Enterprises, and joint Sector Enterprises and so on. The management and ownership of a business are distinct.
Therefore, entrepreneurs need to engage the help of professionals to oversee the business.
The risk posed by the cycle of trade
Although in this day and age the managerial roles, organizational responsibility, accountability for the organization, and general control fall under the responsibilities of professionals, which is referred to as technostructure, despite this, entrepreneurs are thought to be the strongest control of these tasks.
That’s why entrepreneurs have to perform various vital functions required by entrepreneurs for example:
to establish the objectives in addition to the goals and guidelines that will guide the Enterprise.
To create sub-plans and plans for each department and at each step.
The decision of which is the best arrangement for the project according to the nature and size of the undertaking.
The correct task to assign to an right person, and then distribute the task to different experts and groups of individuals.
Establishing connections between employees within the entrepreneur department as well as employees working in the outside world.
To ensure that the activities and duties of various departments and sub-departments, to ensure orderly and professional working environment for all departments.
In order to create a sense of belonging to employees working in the company.
To create conditions that will foster the growth of employees.
Enhance communication between employees and officers , and give direction and guidance.
Establish a system for controlling the work to ensure that the work is completed in accordance to the program.
5. Financial Functions
The fourth and most important task for an owner of a business is to manage the funds to finance the business, in accordance with the nature and scope of the undertaking.
All elements of manufacturing are crucial each one is important Which of these capitals is the most important source? Since if the capital isn’t sufficient, the arrangement for the other components will be inadequate as well.
Thus, an entrepreneur has to perform the following tasks as a businessperson
To do rational financial planning.
To find the sources of funding to get the funds to reach the desired Quantum in accordance with the financial plan.
In order to organize fixed capital as well as working capital, while keeping in mind entrepreneur the short – and long-term financial requirements of the company.
Long-term financial requirements
To locate the most appropriate sources of financing for your business, including shares, debentures, or bank loans, and the loans offered by different Financial Institutions, etc. With the financial requirements in the back of your mind.
Find the most cost-effective financial source through an as well as analysis of the various financial sources.
The government is currently offering subventions and loans at a cost-effective rate for the companies to start up.
So, the owner of the business should bear this information in the back of his/her mind.
6. Functions Relating Innovations
In the context of a growing economy, in the case of as well as referring to”entrepreneur” is talking about “innovator’.
Innovations are the main goal of an entrepreneur’s creativity that entrepreneur is to implement innovative strategies in the area of business.
For companies, it’s not so important to expand in the same manner as it is always innovating.
Innovations are possible to be made within the following categories:
Find new products.
Producing new products.
Innovative methods employing new methods, techniques, equipment as well as and equipment in the production process.
Enhancing the quality of sizes, colors, packaging, and designs as well in packaging, size, color and design.
Seeking new ways to make use of commodities.
Looking for the most up-to-date market trends.
New products that are improve.
Find new sources for material and finished goods.
Innovations and adjusting to improve their standing in the entrepreneur marketplace, and also to improve customer service and quality and efficiency in various areas.
Diversification of the products being incorporate into the beginning stages in the development of an economy.
Implementing new ideas in the field of Human Resource Management.
7. Functions Relating to Distribution
Entrepreneurs are the proprietors of the business. He employs a range of production components (land and capital for labour, Organisation as well as Organisation.) within the business.
The Entrepreneur thus pays an appropriate amount of money to workers, capitalists owners, managers and landowners as a payment for their services with regard to distribution.
Then, the remainder is left over is left to the entrepreneur’s portion of the profit.
This is the primary function of business owner, which is to distribute the earnings earned from their business among different kinds of sources.
8. Functions Relating to Efficient Marketing
In the current market, similar products and services are made by various as well as companies who sell these products. There is worldwide competition.
In the current business environment, managing the successful marketing of goods and services is now the main responsibility for entrepreneurs. It is describe as follows:
In order to provide an estimate of the entrepreneur demand and sales for various products and services.
The best medium to choose by conducting a thorough analysis of all options for distribution on the market.
To oversee a highly efficient sales force.
To create demand for commodities as well as services, and make sure it is maintain.
Advertising can be used to stimulate the middle market. And also to utilize sales promotions to increase the demand for goods and services.
Thus, an entrepreneur has to assume the above. As well as other responsibilities to make sure that marketing is efficient.
9. Searching for New Opportunities
Establishment and operation isn’t the sole responsibility of entrepreneurs.
You should always be searching entrepreneur for opportunities to grow to ensure that when he’s working as a producer. Or distributor it can be awe and enjoy my work with greater excitement.
This is the primary job of an business owner.
- Participating and Development Programmes
One of the duties of an entrepreneur is to play part in the growth of entrepreneurs. These are manage by the government or non-governmental organizations.
By participating entrepreneurs can be able to learn more about the various new avenues to grow.
11. Functions Relating to Project
The owner of the entrepreneur business should prepare reports on the project and feasibility. Studies and should examine them to ensure these are commonly accept.
12. To Make Future of the Business
The owner of the business must ensure the long-term growth of the company through the smooth operation of the business through constant and rational efforts.
