What are the main functions of an Entrepreneur?
An Entrepreneur has to do number of activities right from the bearing of idea up to the organization of an enterprise.
He also has to do functions for successful managing of his enterprise. Entrepreneur has to identify business opportunities and organize resources like man, money, machines, materials and approaches . The following points are the most important activities of an Entrepreneur.
- Idea conception: The first and the most important activity of an Entrepreneur is idea generation.
- Identification of business goals.: Entrepreneur has to mention and lay down the business goals. Goals should be spelt out in clear details.. The Entrepreneur must be sure about the essence and type of business, i.e. whether manufacturing approach or service oriented business or a trading business so that he can deal very well the investment in accordance with the goals defined by him.
- Rising of funds: All the activities of the business rely upon the finance and as a result fund rising is an essential function of an Entrepreneur. An Entrepreneur can increase the fund from internal source as well as external source. He should be aware of distinct sources of funds. He should also have total expertise of government sponsored schemes such as PMRY, SASY, REAP etc. in which he can get government help in the form of seed capital, fixed and working capital for his business.
- Acquisition of machines and materials: Another essential activity of an Entrepreneur is to buy raw materials and machines. Entrepreneur has to determine cheap and common sources of raw materials which will help him to decrease the cost of production and deal with competition bravely. While procuring machineries he should define the technical elements and the capacity. He should take into consideration the assurance , after sales service abilities etc before procuring machineries.
- Market survey : Market survey is the organized collection of data concerning the product which the Entrepreneur wants to manufacture. Entrepreneur has to initiate market research diligently to know the details of the concerning product, i.e. the interest for the product, size of the market/customers, the supply of the product, competition, the price of the product etc.
- Defining form of enterprise: Entrepreneur has to define form of enterprise according to the the nature of the product, volume of investment etc. The forms of ownership are sole proprietorship, partnership, Joint Stock 102 // Management and Entrepreneurship Company, co-operative society etc. Identification of ownership right is important on the part of the entrepreneur to obtain legal title to assets.
- Recruitment of manpower: To do this activity an Entrepreneur has to do the subsequent activities. (a) Estimating man power necessity for short term and long term. (b) Understanding the selection procedure. (c) Creating scheme of compensation. (d) Creating the service rules. (e) Creating mechanism for training and development.
- Execution of the project: Entrepreneur has to create schedule and action plan for the execution of the project. The project must be realized in a time bound manner. All the activities from the idea generation to the commissioning stage are to be accomplished by him in accordance with the execution schedule to avoid cost and time overrun. He has to organize different resources and coordinate various functions . The execution of the project is an essential function of the Entrepreneur. All the above activities of the Entrepreneur can exactly be included into three categories of innovation, risk bearing, and coordinating and managing functions.