Scribd
Upload
27 views4 pages

Entreprenuerral Business Management Chap 3

Uploaded by

Shafqat Ahmed
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
27 views4 pages

Entreprenuerral Business Management Chap 3

Uploaded by

Shafqat Ahmed
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 4

ENTREPRENEURIAL BUSINESS MANAGEMENT

CHAPTER 3
Functions of an entrepreneur:
1. Conceive and Generate the Idea:
The entrepreneur plays an important role in generating the idea
of a commercial venture. The entrepreneur must be able to
visualize the need and utility of a product or a new project.
Entrepreneurs carry out environmental analysis and study the
future business environment and thereby provide novel ideas.
2. Conduct Market Research:
The entrepreneur after concretizing the ideas of the product has
to undertake a market research. The market research would
enable the entrepreneur to know the prospect of the product that
he/she intends to produce. The entrepreneur may deploy
research teams to conduct the survey and prepare the report.
3. Setting the Vision, Objectives, Goals, and Modus
Operandi of the Enterprise:
The entrepreneur has to develop and determine the vision and
mission of the enterprise. The entrepreneur has to convert the
conceived ideas into clear cut objectives and goals of the
enterprise. Whether the enterprise would manufacture its own
products or would confine to trading only. The entrepreneur has
to ascertain the nature and type of the business and the scale of
operation. He/she has to draw out an action plan to be
implemented in a time bound manner.
4. Ascertaining the Form of Enterprise:
The entrepreneur has to ultimately decide the form of the
enterprise whether it should be a sole proprietorship,
partnership, Joint Stock Company or a cooperative society. The
legal status of the enterprise has to be decided by the
entrepreneur.
5. Arrangement of Capital:
The entrepreneur has to arrange the funds necessary for the
business initiative. It is not necessary that the entrepreneur has
ready access to funds. The entrepreneur has to raise funds from
other sources. The entrepreneur can take aid from government
ENTREPRENEURIAL BUSINESS MANAGEMENT
CHAPTER 3
schemes, loans from commercial banks and financial institutions
raise private loans etc.
6. Arrangement of Raw Materials:
The entrepreneur has to ensure availability of quality raw
materials at lowest cost. The supply of raw materials has to be
steady.
7. Arrangement of Machinery:
Keeping in view the requirements of the enterprise, the
entrepreneur must procure appropriate machineries and
equipment. The entrepreneur has to keep a watch on the
technological environment and has to procure and install
machinery that would be useful for the company.
8. Hiring of Manpower:
The entrepreneur has to decide the recruitment process, the
eligibility norms and salaries of the workers. The
entrepreneur also has to determine the rules and regulations of
service and ensure development of skills of the manpower.
9. Proper Implementation and Execution of the Project:
The entrepreneur must ensure that the project commences as
per the schedule of the action plan. All possible efforts are to be
made to prevent any delay.
10. Bringing about Innovation:
An entrepreneur can develop new technology in production;
discover new products, source of raw materials, and new
markets. The entrepreneur as an innovator comes up with new
ideas, products, services, methods in order to meet the ever
changing needs of consumers most successfully. As innovator
he/she has a profound influence on the level of business
activities. Innovations can affect the life of a common consumer.
Innovations can also influence the competitiveness of an
economy.
11. The Bearing of Risk and Uncertainty:
In the entire process of establishing an enterprise, the
entrepreneur bears the uncertainty involved in the enterprise.
The entrepreneur undertakes the responsibility of bearing the
ENTREPRENEURIAL BUSINESS MANAGEMENT
CHAPTER 3
losses that may arise on account of new ideas and projects
undertaken by him/her.
12. Providing Training and Developing Skills of the
Workers:
The entrepreneur has to make proper arrangements of
programmes to develop the skill of the employees.
13. Try to Remove the Inertia or the Resistance to Change:
Usually the society opposes new ideas, products and techniques.
The entrepreneur has to skillfully win the confidence of the
people around. He /she can pave the way for others to accept the
change or new innovation. He/she has to strive to change their
attitude.
14. Catalyst of Economic Development:
An entrepreneur makes a vital contribution towards accelerating
the pace of economic development of a country. The different
functions of the entrepreneurs assign different roles to the
entrepreneurs.

Roles of an Entrepreneur:
Here we simply enlist the different roles of the
entrepreneur:
(i) Entrepreneur is a risk-taker
(ii) Entrepreneur helps is business management as well.
(iii) Entrepreneur plays the role of a business leader.
(iv) Entrepreneur plays the role of an innovator.
(v) Entrepreneur promotes capital formation.
(vi) Entrepreneur creates large-scale employment opportunities.
(vii) Entrepreneur promotes balanced regional development.
(viii) Entrepreneur reduces concentration of economic power.
(ix) Entrepreneur helps in wealth creation and distribution.
(x) Entrepreneur contributes to the increase of gross national
product and per capita income.
(xi) Entrepreneurial initiatives and actions help in improving the
general standard of living.
ENTREPRENEURIAL BUSINESS MANAGEMENT
CHAPTER 3
(xii) Entrepreneurial activities promote country’s export trade
and helps in import substitution.

You might also like