Right from the genesis of ideas to the bearing of risk, an entrepreneur has a myriad functions. He recognizes the potential of a product or service and decides whether to take it up as a business venture or not. He is the nucleus of the business and according to some economists; the functions of an entrepreneur can be classified in five broad categories.
1. Risk bearing function
He assumes all the risks of the business. Such risks emerge from possible changes in customer preferences, change in production techniques and new inventions. To cater for such emerging issues, the entrepreneur has to insure against them.
2. Organization
The entrepreneur must bring together all the factors of production and ensure that the business operations run smoothly. The entrepreneur must therefore display impeccable organizational skills at all times to avoid conflict in the operations of his venture.
3.Innovation
It is the duty of the entrepreneur to create new products or transform existing ones into something better. An entrepreneur ma innovate new sources for raw materials or discovering new market potential. All these lead to the creation of new wealth for the venture.
4. Managerial
There are many managerial duties required of an entrepreneur. They include determination of the business objectives, making plans, market research and procurement of materials. As a manager, he will be the one to hire fire and reward employees.
5. Decision Making
Entrepreneurs make all the decisions regarding the business. He decides how the business will be run and sets rules and regulations in this light.
These functions show how much hard work entrepreneurship is. You have to stay on toes to perform them all and this is why you might need assistants and a team of loyal employees to make your business a success. Above all, you must stay conscious of changing trends to stay ahead of the competition.
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