8 Major Functions of an Entrepreneur

Entrepreneur is a person who takes the risks necessary to organize and manage a business and receives the financial profits and non-monetary rewards. The major functions of an entrepreneur are given below:

Functions of an entrepreneur

  1. Organizing functions: Organizing is the part of managing that involves establishing intentional structures of role for people in an organization. The entrepreneur is responsible for organizing the activities necessary for ht production of goods and services.
  2. Conceptualizing new opportunities and possibilities: The entrepreneur plays an effective role in identifying possible opportunities for production purposes. He always looks for opportunities for investment.
  3. Risk taking: He takes risks associated with investments. He faces numerous risks in his/her entrepreneurial endeavor. In order to encounter the risks he/she formulates long term pans and policies and undertakes innovative efforts.
  4. Decision-making: Entrepreneurs take decision about investments. Investment decision includes selection of assets where money would be invested. On the other hand, business decisions include decisions about procurement of machinery and supplies, quality of products, pricing of products, diversification of products, determining optimal capital structure etc.

    Major Functions of an Entrepreneur

    Functions of an Entrepreneur

  5. Technology transfer: Entrepreneurs play a very important role in transferring technology form sources where these are available. In the developing countries, the entrepreneurs try to adopt appropriate technology.
  6. Implementation of innovations: They introduce newness in the venture activities through innovation of new production process, exploring of new markets, and identification of new management techniques, and so on.
  7. Utilization of experience: Entrepreneurs utilize their own experience and also the experience of others, especially or the successful entrepreneurs of other countries.
  8. Managerial roleSuccessful entrepreneurs are also efficient managers. They perform the managerial functions of planning, organizing, leading and controlling.

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