The functions of an entrepreneur are many as they are the sole arranger of an entire organization. They can be explained as follows:
1. Determination of objectives : An entrepreneur has to determine the aims and objectives of the enterprise. He should change them as per required conditions or prefer those which are advantages to the enterprise.
2. Innovation : An entrepreneur is basically an innovator who introduces new combinations of means of production. He introduces something new in any branch of economic activity. Innovation implies doing new things or doing those things that one already is being done in a new way. Innovation also involves problem solving and the entrepreneur gets satisfaction from using his capabilities in attacking problems.
3. Good relations : The development of an enterprise greatly depends on the efficient relations of the, superiors, subordinates and all employees. Coordination among the employees of the enterprise will have great effect on the success of an enterprise.
4. Organizing funds : To keep the enterprise run successful the need of adequate financial resources, has to be looked after by the entrepreneurs. A good relation with the existing and potential investors has to be looked after.
5. Acquiring new technology : The requisition of new efficient technological equipment and the timely revision of it as new machinery appears.
6. Development of market : The entrepreneurs from time to time try different acts to develop the market for its products. It should also develop the new product in the market or look forward to consumer's demand.
7. Risk bearer : Future is uncertain and unknown. The entrepreneur has to take risk in any circumstances. If the enterprise succeeds, the entrepreneur gets profits, if it does not, losses occur. Risk is of two types, insurable or non-insurable. Non-insurable risk can be reduced by the entrepreneur by using his skills and good judgment of the PREVAILING environment.
8. Taking decisions : When an entrepreneur is convinced with his idea of a new production, he decides to enter the market with all his motivation and ability. He has to take wise decisions to formulate a proper action plan.
Economist Kilby Peter has enumerated 13 functions of an entrepreneur. He is of the opinion that an entrepreneur has to perform the following kinds of activities for the successful operations of the enterprise.
1. Perception of market opportunities.
2. Gaining command over scare resources.
3. Purchasing inputs.
4. Marketing of products and responding to the competition.
5. Dealing with the public bureaucracy.
6. Managing human resources of the firm.
7. Management of customer and supplier relations.
8. Financial management.
9. Managing production.
10. Acquiring and overseeing - assembly of factory.
11. Industrial engineering.
12. Upgrading process and product quality.
13. Introduction of new production techniques and products.