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FUNCTIONS OF AN ENTREPRENEUR

Who is an Entrepreneur? Entrepreneur is a proprietary capitalist that is a supplier of capital and at the same time working as a manager intervening between the labour and consumer. He effectively coordinates productive resources to attain profit and growth. Main functions of an Entrepreneur

An entrepreneur performs all the necessary functions which are essential from the point of view of operation and expansion of enterprise. The main functions of an entrepreneur are as follows:

1. Idea generation:Idea generation is an important function of an entrepreneur. Innovative idea, new concept, product or service also incremental value addition. Sources of new ideas Consumers, Existing companies, R&D,
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Employees, Dealers & retailers. Methods of generating new ideas Brain storming, GD, data collections, feedback, Invitation of ideas through advertisements, Mails or internet, Market research, Commercializing inventions, Business contests, fests, business Bazigar on Star TVcontest business plans.

2. Planning

Planning is also an important function of entrepreneur. In the direction of setting up of an enterprise, entrepreneur prepared a blue print of proposed project in a systematic format. He determines the goal of the business, formulates policies, analysis the markets, makes forecasts and figures out programme of work to be done.

In the business plan the entrepreneur summaries three things: i. What are the entrepreneurs goals and objectives? ii. What strategies will the entrepreneur use to obtain these goals and objectives? iii. How will the entrepreneur implement these strategies?
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As regards the proposed projects, planning involves the following activities:

a) Scanning of the business environment. b) Measuring the suitability of business idea. c) Selection of product line. d) Determination of type of business organization e) Estimation of capital need. f) Selection of capital resource g) Selection of location h) Studying of government rules, regulation and policies. i) Performing government formalities. j) Studying the availabilities of labour force k) Study of the market and market strategy to be adopted. The plan should describe the match between the entrepreneurs ability and requirements for producing and marketing a particular product. It should define strategies for production and marketing, legal aspect and organization, and accounting and finance.

Another important function of entrepreneur is financial planning; which translate all other activities into monitory terms. He has to prepare a cash budget which tells him how much money he need before he opens for business and how much money he need to keeps the enterprise operating.

Assignment | Functions Of An Entrepreneur

3. Risk taking

Risk taking is a way an entrepreneur works. Richard Cantillon states that entrepreneur is an agent who buys means of production at certain prices and sells them at uncertain prices. Thus, Cantillon introduces elements of direction and speculation into the functions of an entrepreneur. Knight describes him as the bearer of uncertainty. There is difference between risk and uncertainty. A risk situation occurs when the entrepreneur is required to make a choice between two or more alternatives whose potential outcomes are not known and must be subjectively evaluated. As a risk taker, the entrepreneur has to make decisions in conditions of uncertainty, balancing potential success against potential loss. Uncertainty is defined as risk which cannot be calculated. The entrepreneur, according to Knight, is the economic functionary who undertakes such responsibility which, by its very nature, can neither be insured nor salaried. The entrepreneur performs the function of reducing uncertainty in his plan of investment and expansion of the enterprise. J.B. Say also stresses risk-taking as the specific function of an entrepreneur.

4. Team building

TEAM building isn't merely something entrepreneur does because it creates harmonious work groups, or is fun to do. It is a way to bring out the power of
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collaboration among individuals. It is a proven method for blending the talents, skills, and inherent creativity of diverse people. This collaboration is behind the strategic decision to empower the work groups to leverage skills, time, and resources for their own benefit and that of the organisation. Much of the problem of making teams successful in the workplace stems from past perceptions of what teams are, and ignorance of the powerful principles underlying them. Teams are a formal way to actualise collaboration. Collaboration is at the heart of successful decision-making, but somehow this fact eludes many organisations. In teams, the sum total of collaboration is greater than what could have been achieved individually. To test this, think of some decision you need to make, then ask someone for his or her thoughts. If an entrepreneur wants to really expand the possibilities, get several people together and ask them to discuss the issue. Then take notes. Later, look at your notes and see how many new facts and ideas have been added. Thus, team building is a process of awareness building. It's helping an entrepreneur to understand that they are greater collectively than individually. It is an understanding that most of our decisions will be better when some degree of collaboration is applied.

5. Innovation:

J. Schumpeter has made substantial contribution to the literature of entrepreneurship. He says that an entrepreneur is basically an innovator and he introduces something new in the economy. He sees profitable opportunities and exploits them. According to Schumpeter, the entrepreneur is one who carries
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out new combinations of means of production. The process of innovation may be in the form of: i. ii. iii. iv. v. Introduction of a new product. Use of new methods of production. Opening of a new market. The conquest of new source of supply of raw material. A new form of organization.

Schumpeter also entrusts the function of sound management and control for the survival as well growth of the production unit. Further he also distinguishes between an inventor and innovator. An inventor discovers new methods and new materials whereas an innovator utilizes inventions and discoveries in order to make new combinations and thus produces better goods which give him more profits and satisfaction than before. A distinction has also been made between a manager and an innovator by Schumpeter. A manager performs the function of looking after day to day affairs of his going concern while an innovator changes the factor combinations to enhance productivity and profits. Schumpeter said that the basic function of an entrepreneur was to innovate. He was never a risk-bearer. He said that though the basic function of an entrepreneur is to innovate, this function must always appear mixed up with other kinds of activity. He wrote: "Everyone is an entrepreneur only when he actually carries out new combinations and loses that character as soon as he has built up his business, when he settles down to running it as other people runs their business".

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Generally speaking the organizational innovativeness is related to the innovativeness, personality, attitude and background characteristics of organizational members. This is more so in case of innovations. Stephen Loveless and Barry Bozeman offered an explanation that the influence of an innovator on the organization is more than the influence of mere members of the organization. An entrepreneur who is successfully performing the function of innovation would be more supportive than adopters. It is not true that inventions can be carried out only by large firms due to their strong financial, technical and managerial base. The world's most useful inventions have been made by the small firms. Large firms may have strong base but they lack flexibility. They cannot react rapidly to new demands and exploit them but small firms can do this.

6. Decision maker:

Some writers are of the view that the qualities of the entrepreneur are to take decisions regarding the activities of the concern. He is expected to take decisions about the type of business to be done and the way of doing it. Arthur H. Cole describes an entrepreneur as a decision maker and describes the following functions of an entrepreneur. i. The determination of objectives of an enterprise and the change of those objectives as conditions required or made advantageous,
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ii.

The development of an organisation including efficient relations with subordinates and all employees,

iii.

Securing adequate financial resources, the relations with existing and potential investors,

iv.

The acquisition of efficient technological equipment and the revision of it as new machinery appears,

v.

The development of a market for the products and the devising of new products to meet or anticipate consumer's demand,

vi.

The maintenance of good relations with public authorities and with society at large.

7. Organisation & Management Marshall

Recognized organization and management of the enterprise as the important functions of an entrepreneur. When the organization grows bigger, the entrepreneur effectively delegates authority and finds responsibility at various levels of management. The network of decision making becomes more complex.

The organisational structure may become highly complex with the expansion of business but the central function of an entrepreneur remains the same. It is the entrepreneur who has to perform the function of expansion and contraction of the total business and its branches. Harbinson does not denote the entrepreneur in Schumpeter's sense but, he says that the entrepreneur harnesses new ideas of different innovations to the best advantage of the organisation. The entrepreneur may or may not try new
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combinations of resources but he must be a good administrator. He is at the helm of affairs and is the final judge in the conduct of his business. The function of organisation and management includes : i. Planning of an enterprise, ii. Co-ordination, administration and control, iii. Routine type of supervision. The entrepreneur is in essence an institution which comprises of all people required to perform various functions. The task of such people is to innovate, adjust or combine various factors of production, and expand on account of change in demand and market conditions. They must foresee the opportunities and must also be in a position to make opportunities out of a given situation.

8. Market research

With effective market research, an entrepreneur can determine the need for his service, a product's likelihood to sell, target-market demographics, and desirable store locations. There are numerous ways to uncover this information from online research to focus groups to counting customers. To help he meet his target market's needs, he can put together a collection of our best marketresearch articles and resources. It is conducted to estimate the demand and market share of the proposed product/service in future. Demand analysis and market share is based on number of factors consumption pattern, availability of substitute goods/service, competition etc.

Assignment | Functions Of An Entrepreneur

A preliminary discussion with consumers, retailers, distributors, competitors, suppliers is carried to understand consumer preferences, existing and potential demands, strategy of competitors, and practices of distributors, retailers etc., present and prospective consumers, geographic and seasonality distribution of the demand, marketing mix of competitors, accepted marketing mix of consumers.

9. Leading
As an entrepreneurial venture grows, an entrepreneur takes on a new role that of a leader. He must assume the visionary leadership. The entrepreneurs leading function is drawing the best out of other individuals. He must create team work among employees. As a leader, entrepreneurs must shift from the traditional command-and-control style to coach-and-collaboration style.

10. Other functions

Peter Kilby has listed the following functions of an entrepreneur: i. ii. iii. iv. v. vi. Perceiving market opportunities. Gaining command over scarce resources. Purchasing inputs. Marketing the products. Dealing with bureaucrats. Managing human resource within the firm.
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vii. viii. ix. x. xi. xii. xiii. xiv. xv.

Managing customers and supplier relations. Managing finance. Managing production. Acquiring and overseeing assembly of factory. Industry engineering. Upgrading process and products. Introducing new production techniques and products. Capital formation. Market expansion.

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Conclusion
There are many opportunities in the world of business. These are based on human needs like food, fashion, education, etc., which are constantly changing. These opportunities are not realised by common man, but an entrepreneur senses the opportunities faster than others do. An entrepreneur therefore, has to keep his eyes and ears open and require imagination, creativity and innovativeness.

An entrepreneur should be capable of turning his ideas into reality. He collects information regarding the ideas, products, practices to suit the demand in the market. Further steps are taken to achieve the goals in the light of the information collected.

The entrepreneur conducts studies to assess the market feasibility of the proposed product or services. He anticipates problems and assesses quantity, quality, cost and sources of inputs required to run the enterprise. Such a blue print of all the activities is termed as a business plan or a project report. The entrepreneur needs various resources in terms of money, machine, material, and men to running the enterprise successfully. An essential function of an entrepreneur is to ensure the availability of all these resources. For setting up an enterprise the entrepreneur may need to fulfil some legal formalities. He also tries to find out a suitable location, design the premises, install machinery and do many other things.

One of the important functions of an entrepreneur is to run the enterprise. He has to manage men, material, and finance and organise production of goods and
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services. He has to market each product and service, after ensuring appropriate returns (profits) of the investment. Only a properly managed organisation yields desired results. Once the enterprise achieves its desired results, the entrepreneur has to explore another higher goal for its proper growth and development. The entrepreneur is not satisfied only with achieving a set goal but constantly strives for achieving excellence.

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My References-

The

Dynamics

of

Entrepreneurial

Development

and

Management- Vasant Desai. Fundamentals of Entrepreneurship- G. S. Sudha Entrepreneurial And Small Business Management - M. B. Shukla www.google.com

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