Explain The Functions Of An Entrepreneur.

These are the functions performed by an entrepreneur.

1. Planning of the project: He is the organizer to conceive the idea of launching the project and to program the structure of business.

2. Management: The entrepreneur is also responsible for the management of business. He tries to have a least cost combination of factors of production.

3. To Face Risks: He faces uncertainly and bears risks in his business uncertainly comprising those risks against which it is not possible to insure. He also faces the risk of other producers may enter the market.

4. Distribution of Rewards: He is responsible of distributing the rewards to all factors of production. He pays the reward in the shape of rent, wage, and interest and bears the risk of profit or loss himself.

5. Sale of Products: An entrepreneur is also responsible of marketing, advertising. He wants to maximize his profits by selling his product in the market.

6. Scale of Production: He decided the scale of business in according with the provision of capital. Then, he takes the decision of what where and how to produce goods.

7. Joint stock Organization: In a partnership, the entrepreneurial functions are divided between the partners. But in public limited company, the board of directors takes this responsibility with nationalized enterprise; the entrepreneurial decisions are left to the government or a body to which government has delegated its powers.

Raising of finance,
Planning of production,
Risk bearing capacity,
Manage enterprises,
Earning profits,

Some of the major functions of an entrepreneur are:
I) Identifying entrepreneurial opportunity – There are many opportunities in the world of
business. These are based on human needs like food, fashion, education, etc., which are
constantly changing. These opportunities are not realised by common man, but an
entrepreneur senses the opportunities faster than others do. An entrepreneur therefore, has
to keep his eyes and ears open and require imagination, creativity and informativeness.
Ii) Turning ideas into action – An entrepreneur should be capable of turning his ideas into
reality. He collects information regarding the ideas, products, practices to suit the demand
in the market. Further steps are taken to achieve the goals in the light of the information
collected.
Iii) Feasibility study – The entrepreneur conducts studies to assess the market feasibility of
the proposed product or services. He anticipates problems and assesses quantity, quality,
cost and sources of inputs required to run the enterprise. Such a blue print of all the activities
is termed as a 'business plan' or a 'project report'.
Iv) Resourcing – The entrepreneur needs various resources in terms of money, machine,
material, and men to running the enterprise successfully. An essential function of an
entrepreneur is to ensure the availability of all these resources.
V) Setting up of the Enterprise – For setting up an enterprise the entrepreneur may need to
fulfil some legal formalities. He also tries to find out a suitable location, design the premises,
install machinery and do many other things.
Vi) Managing the enterprise – One of the important function of an entrepreneur is to run the
enterprise. He has to manage men, material, finance and organize production of goods and
services. He has to market each product and service, after ensuring appropriate returns
(profits) of the investment. Only a properly managed organisation yields desired results.
Vii) Growth and Development – Once the enterprise achieves its desired results, the
entrepreneur has to explore another higher goal for its proper growth and development.
The entrepreneur is not satisfied only with achieving a set goal but constantly strives for
achieving excellence.