Define entrepreneur. Explain the functions of entrepreneur.
Solution:
Definition: Webster dictionary gives a definition, "An entrepreneur is a person who starts a business and is willing to risk loss in order to make money."
Functions fo entrepreneur.
1) Innovation:
An entrepreneur is basically an innovator. He introduces new combinations of means of production. He must introduce new products or bring changes in the existing products. Customers are satisfied with new products or new features in the existing products. Innovation is also necessary to solve problems that arise in the business.
2) Determination of Objectives:
An entrepreneur has to determine the aims and objectives of the business. There may be difference between primary and secondary objectives of the enterprise. He can change these objectives as per the market situations.
3) Development of Market:
The entrepreneur has to find out different ways for marketing the products and services of his enterprise. He can conduct surveys or research to understand the customer's demand. When the markets are developed constantly, the demands of the consumers will increase.
4) New Technology:
In global world, everyday there is an invention of new technology. Introduction of new technology will always result in growth of business e.g. new machinery, advanced technology, new and scientific methods of production, etc.
5) Good Relations:
It is necessary to maintain healthy working atmosphere in an organization. It depends upon the efficient relations between subordinates and superiors. Co-ordination among the employees is the key of success.
6) Organizing Funds:
Entrepreneur needs to find out different financial resources because adequate and continuous finance is always necessary for business. Good and honest relations with the investors is necessary for every business.
7) Taking Decisions:
An entrepreneur has to take wise decisions for his enterprise. Timely and correct decisions are also important and necessary for a proper business plan. He should always consider the pros and cons before taking any business decision.
