Question

Answer in brief.

Explain any five function of entrepreneur.

Answer 1

According to Webster Dictionary,

“An entrepreneur is a person who starts a business and is willing to risk loss in order to make money.”

The following are the functions of an entrepreneur:

1. Determination of Objectives: An entrepreneur has to determine the aims and objectives of the business. There may be a difference between primary and secondary objectives. He can change the objectives as per the market situations.
2. Innovation: An entrepreneur is basically an innovator. He introduces innovation in the range of products, in business processes and also in solving problems. He understands that customers are satisfied only when the new products or radically new features in existing product are introduced. Therefore, an entrepreneur is constantly innovating.
3. Development of Market: The entrepreneur has to find out different ways for marketing of products & services of his enterprise. For this purpose, he may conduct marketing surveys or research to understand the customers’ demand. When the markets are developed constantly, the consumers’ demand will increase.
4. New Techonology: In the global world, there is constant invention of new technology. An entrepreneur has to adopt this new technology for the growth of business. New technology may be used for manufacturing the products, automating business processes, sales & marketing etc. E.g.: The use of social media i.e. FB, Twitter, Instagram etc. for marketing products & services is a great example of use of new technology by business enterprises.
5. Good Relations: The entrepreneur has to ensure that a healthy working atmosphere is maintained at the workplace. There has to be a good relation between superiors & subordinates. Co-ordination among employees is the key to success.
6. Organising Funds: A business needs funds constantly for smooth functioning. Finance is like blood for the business. The entrepreneur has to find out different financial resources to be able to raise funds. He has to maintain good & honest relations with investors for this purpose.
7.  Taking Decisions: A major part of entrepreneur’s work is taking decisions. He has to take timely & correct decisions in order to ensure the success of business. He should always consider the pros and cons before taking any business decision.