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30. LABOUR
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ENTREPRENEUR
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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.
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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.
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LABOUR ENTREPRENEUR
