There are many theories regarding the roles of an entrepreneur because of their complex nature. The functions of an entrepreneur can vary in accordance with time, place the degree of economic development, the source of funding and the size, etc.
Functions of an Entrepreneur
Here are the most important roles of an entrepreneur in the business world:
1. Promotional Functions of an Entrepreneur
The primary responsibilities of an entrepreneur is to create and promote as well as an organization, following the testing of the business 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 main functions as well as in connection with marketing the Enterprise:
In the process of conceiving business concepts and concepts.
To gather the essential details and facts related to the concept and to determine the viability and viability of the concept.
To predict your economic analyses.
Select the appropriate ownership (leadership or corporate as well as, partnership joint ownership, companies such as. ).
The dimensions of an Enterprise.
Determine the mission that as well as the Enterprise.
Find out the place and location of the Enterprise.
To prepare plant layout.
For financial planning, it is necessary to estimation of capital requirements.
Registration and the completion of the other formalities required by law.
To organize the necessary infrastructure and resources.
To make a decision on the organizational structure within the organization.
Equipment selection and manufacturing process.
For business to begin.
2. Risk Bearing Functions
The other main responsibilities of entrepreneurs is to manage the risk. For all kinds of business, whether large or small, risks are a part of the business.
Without risk bearing the operations of the business can’t be thought of at all. The risk is linked to capital.
In the modern world of business, different kinds of risks and uncertainties remain. Some of these risks can be categorized as ones that one is protected by taking insurance against theserisks, including thefts, fires or dacoity, earthquakes flooding or storms, tsunamis etc.
For conducting market research
However, some risks that are not known are ones that can’t be anticipated nor covered and must be taken on by the entrepreneur. Examples include:
The risk is posed by fluctuations in demand and the changes.
Risques arising from competition (changes in fashion, tastes and the demand).
Risks associated with changes in prices of various as well as resources and the.
Risikens of changes to the policies of the government.
The risks arising from the trade cycle.
Risks that arise from significant fluctuations in the environment of business.
Human interactions and risks and inefficiency.
Entrepreneurs must make various as well as kinds of decisions on the basis of forecasts and foresight.
If any choice or forecast of the businessperson is not successful, the entrepreneur could be liable for huge loss.
Therefore, we can be able 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 should contribute to the overall composition of the battery society. He must make the most efficient use of social resources, increase employment opportunities and be able to fulfill his social obligations for various sections of society.
4. Function Relating to Management, Organisation, and Control
Entrepreneurs are required to carry out different tasks related to management, control, and organization in addition to the duties of promoting the company.
The effective operation of the venture, when it is sole ownership, a business where the owner is usually the owner as well as the manager.
Therefore, he must manage a variety of functions. In other types of ownership as well as for businesses, such as Company, State Enterprises, and joint Sector Enterprises, etc. Management and ownership are different.
Thus, the entrepreneur needs to engage the services of professionals to manage the business.
Risques of massive technological shifts
While in the current age the management roles organization responsibility, organizational accountability, and overall control are the responsibility of professionals, referred to as technostructure, despite of this, entrepreneurs are considered to be the most powerful controller of these functions.
This is why entrepreneurs are required to fulfill various essential functions for an entrepreneur, such as:
to determine the goals as well as the goals and guidelines that will govern the Enterprise.
To create plans and sub-plans for each department, and at every stage.
The selection of the most suitable structure for the organisation, in accordance with the nature and scale of the project.
The right task to be assigned to the appropriate person and distribute the associated work to various experts and groups of people.
To establish the relationships between the various employees in the department and those working outside.
In order to coordinate the duties and activities of the various departments and sub-departments in order to ensure an orderly and formal working of all departments.
To bring out the feeling of ownership towards work
To create conditions to encourage the growth as well as of employees.
Improve communication between employees and the officers , and to provide direction and leadership.
Develop a control system to ensure the work is done in line with the plan.
5. Financial Functions
The fourth major task of an business owner is to oversee the necessary finances to fund the business, according to the type and size of the project.
While all aspects of production are equally important, they all have significance, which of these capitals is the most crucial source? Because if the capital is not sufficient and the arrangement for other elements will also be ineffective.
Therefore, an entrepreneur must fulfill the following duties as an businessperson:
Rational financial planning.
To identify the sources of financing to raise the funds to the desired Quantum as per financial planning.
Organize fixed capital and working capital, keeping in mind the short and long-term financial needs of the business.
To find the appropriate sources of finance, such as shares, debentures or bank loans, as well as the loans of other Financial Institutions, etc. By keeping the financial needs in mind.
Choose the most cost-effective financial resource by conducting an analysis of the different financial sources.
The government currently offers loans and subsidies at a low cost for establishment of businesses.
Therefore, the business owner should keep this information in mind.
6. Functions Relating Innovations
In the world of a developing economy, when we refer to”entrepreneur”, we are referring to “innovator’.
Innovations are the primary purpose of an entrepreneur’s innovation, which involves implementing new strategies in the field of business.
For businesses, it’s not as essential to expand in the same way as it is to be constantly innovative.
Innovations may be created within the following areas:
Finding new products.
Making new commodities.
Utilizing innovative methods using new techniques, methods, equipment and machines in production.
Enhancing quality sizes, colors packaging, designs as well as in packaging, size, color, and design.
Looking for new ways to use commodities.
In search of the latest markets.
Improved existing products.
Finding new sources of raw materials and semi-finished products.
Making innovations and adapting to enhance their position in the market, and to enhance customer service as well as quality and efficiency across a variety of fields.
Incorporating diversification of products in the early levels of economic development.
Applying new concepts in the area of Human Resource Management.
7. Functions Relating to Distribution
Entrepreneurs are the owners of the company. He uses a variety of elements of production (land and labour capital, Organisation as well as Organisation.) within the company.
Thus, the Entrepreneur pays an appropriate reward for capitalists, workers, landowners and managers in exchange for their service in relation to distribution.
Then, whatever is left with the entrepreneur’s part of the profits.
So, this is the crucial role of an entrepreneurs, which is the distribution of the income earned from the industry among various types of sources.
8. Functions Relating to Efficient Marketing
In today’s competitive market Similar products and services are manufacture by various producers who also distribute these items. There is competition on a global basis.
In this business climate managing the effective marketing of products and services has become the primary responsibility of an entrepreneur. It can be describe as the following:
To provide an estimate of the sales and demand for different products and services.
Selecting the most suitable medium through a thorough study of all distribution options available in the markets.
To generate demand for commodities and services , and to ensure it up.
to manage a highly effective sales force.
So, an entrepreneur needs to take on the above-mentioned and other responsibilities in order to ensure efficient marketing.
9. Searching for New Opportunities
Establishment and operation is not the only job of the entrepreneurs.
He should be constantly looking for new opportunities to gain so that when he is working as a distributor or producer it will be able to feel the excitement and my job with more excitement.
This is the main task of an entrepreneur.
10. Participating and Development Programmes
Through this participation, entrepreneurs will learn a lot about the many new possibilities for growth.
11. Functions Relating to Project
The business owner should create project reports and feasibility studies and must review them to ensure that they are as well as quickly accepte.
12. To Make Future of the Business
The business owner must also guarantee the future success of the business through the efficient running of the business with consistent and logical efforts.
The main responsibilities of an business as well as entrepreneur is to make the current business capable enough to be able to create tomorrow.