Functions Of An Entrepreneur
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Functions of An Entrepreneur
The various roles performed by an entrepreneur are as under:
1. Innovation: An entrepreneur is basically an innovator who tries to develop new technology, products and markets. Innovation implies doing things in new ways or doing new things. It may involve introduction of new techniques, introduction of new goods and services, developing a new market, etc. The entrepreneur uses his creative faculties to do new things and exploit opportunities in the market. He does not believe in status quo, he wants change.
2. Bearer of Risks and Uncertainty : An entrepreneur assumes business risks and is prepared for the losses that may arise because of unforeseen contingencies in future. This willingness to take risks allows him to take initiatives in doing new things or trying new methods of production. This helps in satisfying their’ achievement need.
3. Promoter : Traditionally, an entrepreneur undertakes the risks of setting up a small enterprise as a sole proprietor. But these days’ may entrepreneurs have assumed the role of promoters of large joint stock companies. As promoters, they conceive the business idea, conduct feasibility studies, take steps to get the company registered and raise capital for the company form the public and other sources. In such cases, the distinction between an entrepreneur and a promoter is of academic interest only. Thus, the persons who start a new basis as a role proprietary or partnership firm are known as entrepreneurs. But those connected with the incorporation of a company are often known as ‘promoters’. The promoters complete all legal formalities to get a company registered and also raise capital from the public.
4. Supplier of Capital: In several cases, entrepreneurs start business enterprises with their own financial resources. Thus, they supply initial capital to the business and undertake business risks. However, technocrat entrepreneurs approach financial institutions to raise ‘risk capital’ for their ventures of enter into partnership with those who can contribute capital to the business.
5. Management: In most of the cases, small entrepreneurs also assume the managerial role. As a manager, the entrepreneur plane, organizes, directs and controls the activities of the business. He loads the workers. co-ordinates their operations and motivates them for higher productivity. However, when the size of business grows considerably, the entrepreneur can employ professional managers for effective management of the business.
Kilby identified thirteen functions of an entrepreneur divided into four groups as follows:
A. Exchange Relationship:
(1) Perceiving market opportunities.
(2) Gaining command over scarce resources.
(3) Purchasing inputs.
(4) Marketing of the products and responding to competition.
B. Political Administration
(5) Dealing with the public bureaucracy (concessions, licenses and taxes).
(6) Managing human relations within the firm.
(7) Managing customer and supplier relations.
C. Management Control
(8) Managing finance.
(9) Managing production (control by written records, supervision, coordinating input flows with orders, maintenance).
D. Technology
(10) Acquiring and overseeing assembly of the factory.
(11) Industrial engineering (minimizing inputs with a given production process).
(12) Upgrading process and product quality.
(13) Introducing new production technique and products.
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1. Innovation: An entrepreneur is basically an innovator who tries to develop new technology, products and markets. Innovation implies doing things in new ways or doing new things. It may involve introduction of new techniques, introduction of new goods and services, developing a new market, etc. The entrepreneur uses his creative faculties to do new things and exploit opportunities in the market. He does not believe in status quo, he wants change.
2. Bearer of Risks and Uncertainty : An entrepreneur assumes business risks and is prepared for the losses that may arise because of unforeseen contingencies in future. This willingness to take risks allows him to take initiatives in doing new things or trying new methods of production. This helps in satisfying their’ achievement need.
3. Promoter : Traditionally, an entrepreneur undertakes the risks of setting up a small enterprise as a sole proprietor. But these days’ may entrepreneurs have assumed the role of promoters of large joint stock companies. As promoters, they conceive the business idea, conduct feasibility studies, take steps to get the company registered and raise capital for the company form the public and other sources. In such cases, the distinction between an entrepreneur and a promoter is of academic interest only. Thus, the persons who start a new basis as a role proprietary or partnership firm are known as entrepreneurs. But those connected with the incorporation of a company are often known as ‘promoters’. The promoters complete all legal formalities to get a company registered and also raise capital from the public.
4. Supplier of Capital: In several cases, entrepreneurs start business enterprises with their own financial resources. Thus, they supply initial capital to the business and undertake business risks. However, technocrat entrepreneurs approach financial institutions to raise ‘risk capital’ for their ventures of enter into partnership with those who can contribute capital to the business.
5. Management: In most of the cases, small entrepreneurs also assume the managerial role. As a manager, the entrepreneur plane, organizes, directs and controls the activities of the business. He loads the workers. co-ordinates their operations and motivates them for higher productivity. However, when the size of business grows considerably, the entrepreneur can employ professional managers for effective management of the business.
Kilby identified thirteen functions of an entrepreneur divided into four groups as follows:
A. Exchange Relationship:
(1) Perceiving market opportunities.
(2) Gaining command over scarce resources.
(3) Purchasing inputs.
(4) Marketing of the products and responding to competition.
B. Political Administration
(5) Dealing with the public bureaucracy (concessions, licenses and taxes).
(6) Managing human relations within the firm.
(7) Managing customer and supplier relations.
C. Management Control
(8) Managing finance.
(9) Managing production (control by written records, supervision, coordinating input flows with orders, maintenance).
D. Technology
(10) Acquiring and overseeing assembly of the factory.
(11) Industrial engineering (minimizing inputs with a given production process).
(12) Upgrading process and product quality.
(13) Introducing new production technique and products.
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