Meaning: -An entrepreneur is
one who organizes the factors of production and takes necessary actions to run
the business.
The new
Encyclopaedia of Britannica defines “An entrepreneur is an individual who bears
the risk of operating a business in the face of uncertainty about the future
conditions”.
Peter F Drucker defines: -
“one, who always searches for change, responds to it and exploits it as an
opportunity”.
The entrepreneur performs vital functions. The main
functions are as briefly stated as follows:
1.
Initiates Business
Enterprises: - The foremost function of an entrepreneur is that he in initiates the business enterprise. For
this purpose, he performs the following:
·
Generates ideas to set up a business unit.
·
Plans for the setting up of business unit.
·
Organises the factors of production- land, labour, and capital.
2.
Risk Bearing: - The entrepreneur assumes the risks
of his business. A person who can take risk can become an entrepreneur. Risk
taking is the heart of entrepreneurship. Those who are not inclined (of a mind)
to take risk cannot become entrepreneurs. It is to be noted that successful
businessman take calculated risks.
3.
Decision Making: - An entrepreneur is required to take
several decisions. The decisions in respect of
·
Location of the business unit, Selection of employees, Obtaining of
funds, Productiondecisions.
·
Marketing and distribution decisions.
4.
Coordination: -An entrepreneur performs the
functions of coordination. He coordinates the working of the business
enterprise. He has to coordinate the various functional departments such as
production, marketing, finance, etc.
5.
Combines the factors
of production: -The entrepreneur
has to combine the factors of production in such a way that he gets maximum
return on investment. Therefore, there should be a maximum return on
investment. Therefore, the should be a proper mix of land, labour and capital
to get highest possible returns.
6.
Innovation: - The entrepreneur should be imaginative and innovative. He should be
dynamic in nature. Therefore, a successful entrepreneur is always on the book
out for
·
New ideas, new products, new processes or methods, etc.
7.
Maintain Relations: -An entrepreneur has to maintain good relations with several parties
such as:
·
Employees,
·
Government authorities,
·
Customers, Suppliers,
·
Other relevant section of the society.
