August 8, 2018 445
August 8, 2018 445
For the success of entrepreneurial business pursuit, a number of activities are involved which constitute the functions of an entrepreneur. It becomes so easier task when an entrepreneur knows what it is expected to do at the right time.
These functions are as follows:
Creative thinking involves new ideas and the capability of an entrepreneur to do something in a new way that nobody has thought of. It is the duty of an entrepreneur to be creative
Creative thinking can come in very different ways like innovation which enables the entrepreneur to develop new products, new technology, new supply, new distribution outlets, and extension which involve expanding the current boundaries of the business, by making use of the already existing ideas in other ventures in one area or another country.
It is the major functions of an entrepreneur to be able to identify the business or investment opportunities around. Although, these business opportunities are not always easy to identify unless one has an “entrepreneurial eye,” which will help the entrepreneur recognize those opportunities intuitively. An entrepreneur should be able to identify the consumer’s needs and wants and how best to satisfy them through adequate provision of goods and services.
Right acquisition and resources by entrepreneur would enable him to achieve his objective correctly. These resources are chosen to determine how efficiently and effectively they are managed. These resources are materials, men, money, and machinery, also known as the 4Ms.
The entrepreneur should take many things into consideration like personal capabilities and interest. The entrepreneur should also take the decision on how to cope with the risk involved. The entrepreneur should take a decision on whether the profit of the venture will be able to cover the risks involved so as to ensure continued growth.
5. Risk Bearing
An entrepreneur is sometimes regarded as Risk Bearer. One of the major functions of the entrepreneur is risk bearing, which is borne into ways, the insurable risk, or unsystematic risks.
These risks are avoidable or diversifiable, which means they can be reduced or transferred to a third party, for instance, an insurance company, such as the risk of fire, flood, and other disasters.
The entrepreneur bears non-insurable risk or systematic risks. These are risks that cannot be passed to a third party, that is non-diversifiable or unavoidable, such as overall market risks, as changes in government, tax reform by the government, foreign exchange, etc. The entrepreneur can minimize these risks through proper forecasting, experience, and training.
6. Establishing the Enterprise
Another major function of the entrepreneur is an establishment of the enterprise because after having identified the opportunity, selected the identified opportunity, taken the decision and borne the inherent avoidable and non-avoidable risks, without establishing the enterprise, such entrepreneur cannot claim to have succeeded unless the enterprise comes into existence and properly managed.
7. Creation of Employment Opportunity
The whole idea about entrepreneurship is about self-employment, which will open the door of employment opportunities to others that must work with the entrepreneur because an entrepreneur cannot work alone.
The provision of new skills, improvement of management, modification of modern technology and changes in the actual production, all constitute an innovation, which the entrepreneur has to articulate in order to properly deliver.
The whole concept of marketing is about consumer satisfaction; so the objectives of any business should lie outside the business by satisfying the customer through innovation of ideas, goods, and services.
9. Management, Planning, and Control
These three elements of entrepreneurial function are paramount because they are the anchor point in the success or failure of the entrepreneur who must plan, manage and control the business properly. The entrepreneur should be able to cope with expected and unexpected issues.
So, mastery of the necessary functions by the entrepreneur goes a long way in achieving the set goals.
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