LABOUR ENTREPRENEUR

30. LABOUR

ENTREPRENEUR

1.      Meaning Labour is the human effort) both physical and mental) by people belonging to working age group, for which a reward or remuneration is paid either in cash or in kind. 2.      Feature/Nature Labour as a factor of production has the following features. (a)    It is an active factor of production. (b)   Demand for labour is derived demand (c)    It is a perishable factor, etc. 3.      Reward Labour is paid wages/salary for his effort in the production process. Wages are fixed and certain. 4.      Incentives Labour is paid incentives for his contribution in the production in the form of commissions, bonus, perks, fringe (ornaments) benefits, etc.

Entrepreneur is the person who plans, organises, directs and controls the process of production. Entrepreneur takes various activities including managerial functions and other risks such as uncertainty bearing, innovation and dynamic changes in the economy. Entrepreneur gets profit for his entrepreneurial activities in the business. Profit is fluctuating, uncertain and sometimes even zero or negative. Entrepreneurs get super normal profit/abnormal profit for their various activities including risk and uncertainty bearing innovation, etc.