CONCEPT OF ENTREPRENEUR
- Before going through function of entrepreneur, let us first understand the meaning of entrepreneur.
- Entrepreneur is a person who arranges the production factors and performs the necessary operations to manage a firm. An individual who takes on the risk of starting a business in the face of ambiguous future circumstances is known as an entrepreneur. According to Peter F. Drucker, someone who constantly seeks change will react to it and seize the chance.
- A successful entrepreneur can use corporate culture to their advantage in creating a successful, profitable firm if they are aware of its significance. They may develop a culture that draws in top people, fosters creativity and innovation, engages staff members, and distinguishes the company from rivals.
- To generate revenue, entrepreneurs work for themselves. They also significantly contribute to the expansion of the economy. To promote entrepreneurship in India, the government is constantly coming up with fresh concepts and initiatives like the Mudra Yojna. Have you ever questioned what an entrepreneur brings to the country that the government is so eager to support this industry? Here, we describe how entrepreneurs contribute to the economy. Many crucial tasks for entrepreneurs to complete in the nation’s economy.
FUNCTION OF ENTREPRENEUR
- Starting and running a business operation
- Delegating tasks to workers
- Identifying potential business changes
- Adding jobs
- Spotting business opportunities
- Generating and dispersing wealth
- Considering and minimizing business risks
- Modernizing company processes
Starting and running business operations
Function of entrepreneur is to start and develop a successful business until it grows. People often make new demands as societies advance, which an entrepreneur might meet with their business plan. This business idea might offer products or services that would be helpful to society. Entrepreneurs can start new businesses at any time by spotting a need and formulating a plan to fill it. They must be knowledgeable about new business and every facet of the company, including making crucial choices, leading by example for staff members, and settling disputes.
Delegating tasks to workers
An owner of a successful business must divide up the tasks among their personnel wisely from the start for it to be more profitable is a another function of entrepreneur. It takes a lot of care to hire skilled and competent employees, especially for small businesses. A business owner is also in charge of setting up a workplace culture and structure that allows each person to reach their full potential. The efforts of a company’s employees are frequently crucial for business development.
Identifying potential business changes
Most businesses experience some measure of uncertainty as they expand. Function of entrepreneur in this field is that he must anticipate future issues and act quickly to find solutions. Because it helps with business decisions like whether to buy more or less of a product, update software, or obtain credit, for a successful business forecasting is essential and time invested in market research is vital.
Another important function of entrepreneur is adding jobs, which staff to hire depends on the type of business being started or expanded by the entrepreneur. Entrepreneurs take into account things like who manages operations and who can handle administrative duties. An entrepreneur may need to take into account people who can work as service providers, software salespeople, or programmers even when they do not directly employ workers to operate in a physical location.
Spotting business opportunities
Do not doubt that starting and growing a business is hard work, entrepreneurs usually look for opportunities that could help improve their cash flow and the growth or improvement of their company. They decide which goods to include and which markets to enter. An entrepreneur should be aware of their potential clients and seek opportunities and to invest in items that are especially tailored to satisfy their business plan.
Generating and dispersing wealth
Another function of entrepreneur is generating and dispersing wealth. A lot of work is to be done for business success. Whether starting a small firm or a large organization, many entrepreneurs first use their funds and take out loans from financial institutions, family members, or friends. Lenders grow their businesses by collecting interest from loans provided to business owners, while investors frequently look forward to investing in tiny but potentially lucrative businesses. The cycle of this financial mobilization can aid in neighborhood wealth development.
Considering and minimizing business risk
To ensure that the concepts they develop are successful, entrepreneurs take their time to analyze and research before launching a firm. The goal of an entrepreneur is to minimize risk to completely remove the possibility of business failure. This is a crucial function of entrepreneur. These steps include hiring capable and devoted staff, securing insurance coverage for the business’s most risky areas, and motivating other investors to help it expand.
Modernizing company processes
Because technology develops so quickly, a business product or service may become obsolete as a result of the introduction of new technology. The use of technology in business operations or activities must be regularly updated by an entrepreneur. Technology-related entrepreneurial roles include:
- looking into the most recent production cost-cutting techniques
- Getting rid of equipment that doesn’t increase profitability
- organizing staff training to help them become familiar with the newest software on the market to increase efficiency
- making use of the most widely used and modern marketing channel to ensure you reach your target audience
- These 8 function of entrepreneur should be present in making a business run to its full potential.
ADVANTAGES OF ENTREPRENEUR
- Financial rewards: The possibility of financial success is one of the main advantages of being an entrepreneur. Entrepreneurs establish their own sources of income and establish profitable businesses.
- Independence: Being an entrepreneur gives you the chance to set your hours and be your boss. People who are sick of the restrictions of regular employment may find this independence and flexibility to be immensely enticing.
- Personal development: Starting and operating a business can present a tremendous opportunity for personal development. Entrepreneurs need to hone their leadership talents, problem-solving capabilities, and capacity for flexibility.
- Creativity: Entrepreneurs can pursue novel concepts and develop new goods or services that have the potential to have a big market impact.
ENTREPRENEURSHIP AND ITS FUNCTIONS
MEANING OF ENTREPRENURESHIP
After thoroughly understanding about entrepreneurs. Now let’s examine what entrepreneurship means. The dynamic process of generating additional money is called entrepreneurship. This wealth is produced by those who take on the biggest financial, personal, and/or professional risks necessary to provide value for a good or service. The actual product or service may or may not be brand-new or special, but the entrepreneur must find a way to add value by acquiring and allocating the appropriate talents and resources.
- entrepreneurship is Making choices, innovation, implementation, future projection, independence, and success are all aspects of entrepreneurship.
- As a discipline with a theory underpinning it, entrepreneurship is the result of complex socioeconomic, psychological, technological, legal, and other elements.
- It is a dynamic and dangerous process.
- It combines resources in terms of money, technology, and human talent.
- Both large and small firms, as well as economic and non-economic activities, can benefit from entrepreneurship.
- Innovation and credibility
- Risk taking and achievement
- Organization and management
- Overcoming resistance to change
- Catalyst of economic development
Innovation and creativity –
Generally speaking, innovation refers to improving processes or developing new, more efficient methods, products, and concepts. For businesses, this may entail putting new concepts into practice, coming up with innovative goods, or enhancing current services. “The tendency to generate or recognize ideas, alternatives, or possibilities that may be useful in solving problems, communicating with others,” is how creativity is defined. Innovation and creativity have long been regarded as surefire strategies to succeed. Entrepreneurs look outside the box and investigate novel areas in search of affordable company solutions.
Risk-taking and achievement –
Entrepreneurship is a process in which a person creates new businesses, jobs, and organizations that are innovative, growing, and associated with risk new opportunities, and success. A new good or service is thereby introduced to society. Entrepreneurs typically take on four different sorts of risks: financial risk, job risk, social and family risk, and mental and physical risk. These risks are as follows:
(a) Financial Risk – Most entrepreneurs start with their cash and possessions, and they worry about losing these things if they fail. They assume the risk of failing.
(b)Job Risk: Entrepreneurs should take into account the existing dangers of quitting their current job and launching a business in addition to following their ideas as practical scenarios. Many business owners have a history of having wonderful jobs that they quit because they felt they weren’t qualified for them.
(c) Social and Family Risk – Starting a business requires a lot of energy and takes time. Due to these activities, he or she may suffer certain social and familial repercussions, such as marital issues and family issues brought on by absences from home and a lack of time for the family.
(d) Mental Health danger – The danger to one’s mental health is likely the biggest one that entrepreneurs face. The danger to money, the home, the husband, the child, and the friends might all be managed, but the start and continuation of entrepreneurial activity have a lot of negative effects on mental tensions, stress, and anxiety. When failure occurs, this may even cause depression.
Organization and Management —
An entrepreneurial organization is a straightforward organizational structure that consists of a sizable operational unit and one or a small number of top-level managers. Entrepreneurial management refers to the abilities required to successfully create and run a business. An entrepreneurial organization is an example of a new small business with an owner-manager. In this situation, the owner-manager typically keeps tight control over business operations. This includes overseeing the company’s primary management tasks. These comprise the decision-making, informational, and interpersonal roles, according to Mintzberg. The ownership and management of these responsibilities are more concentrated in smaller organizations. In general, the entrepreneurial organization lacks structure.
An entrepreneur is a realist who puts a lot of thought into his or her plans before launching them. In other words, an entrepreneur only settles on a concept after giving it careful thought, weighing its pros and disadvantages using analytical tools, gauging its viability, adding actual data to support it, and finally selecting the best option. Then, the person puts the concepts into practice. Thus, choosing an idea necessitates the use of analysis methods.
Overcoming Resistance to Change –
People typically dislike new inventions because they force them to alter their current behavioral patterns. An entrepreneur always begins by testing out new concepts on a small scale. An entrepreneur only makes these ideas available to others for their benefit when they have been successfully implemented. His or her strength of character, zeal, and vigor aid in overcoming society’s opposition to change.
Spark of Economic Development –
An entrepreneur can significantly speed up a nation’s economic growth by finding innovative ways to exploit its resources and making the most use of them. Today, with India’s economy rapidly increasing, the contribution of entrepreneurs has multiplied many-fold.
The function of an entrepreneur is to start and develop a successful business until it grows. It takes a lot of effort to hire skilled and competent employees, especially for small businesses. The efforts of a company’s employees are frequently crucial for business development. The function of entrepreneur in this field is that he must anticipate future issues and act quickly to find solutions. Another important function of a entrepreneur is adding jobs which staff to hire depends on the type of business being started or expanded by the entrepreneur.
There is no doubt that starting and growing a business is hard work. Entrepreneurs usually look for opportunities that could help improve their cash flow and the growth or improvement of their company. They decide which goods to include and which markets to enter. Another function of entrepreneur is to generate and distribute wealth. To ensure that the concepts they develop are successful, entrepreneurs take their time to analyze and research before launching a firm.
Function of entrepreneur is that they should consider and minimize business risks by hiring capable staff, securing insurance coverage, and motivating investors to help the business expand. Modernizing company processes involves regularly updating technology, implementing cost-cutting techniques, eliminating non-profitable equipment, organizing staff training, and using modern marketing channels to reach the target audience.