Question

Functions of an Entrepreneur.

Answer 1

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.