Functions of Entrepreneurship
A successful entrepreneur has a high capacity of taking risks and has faith in his own capabilities. The function of an entrepreneur is to coordinate for the business management of the enterprise, risk-taking, controlling the enterprise, innovation for change, motivation and other related activities.
In reality, entrepreneurs have to carry out a combination of these in keeping with time and environment.
Prediction of Risk:
Every entrepreneur will have to take the risk someday or the other because when you are in business, you have to take the risk. An entrepreneur must know how to predict the risk involved in his business but risks are not predictable such as customer shifting to new technologies, a new invention in the same segment, changes in government policies etc.
Thus the prediction of risk is a very important function of entrepreneurship.
An entrepreneur is a natural decision-maker. He has to take the decision in every department of business from the beginning. For example, What type of product is to manufacture? where to market it? When to expand the territory? What would be the strategies of sales? He takes every decision which is beneficial for the growth of his organisation.
In small organisations or at the beginning of business an entrepreneur has to perform most of the managerial function on his own. He has to prepare the blueprint of the whole business plan like purchase best and cheapest raw materials, gather fund on time, draw plan for sales and marketing, plan for area of operation, proper survey of marketplace to know the actual scope of his planned product, perform quality check of manufactured product by himself etc.
However, in large organisations, these managerial functions are performed by another person whom the company hired on a salary basis.
Function of Innovation:
Innovation in business is the key to establish the product as well as the enterprise for an entrepreneur. An entrepreneur always thinks about what innovation or improvement he can do with his product to increase demand in the market.
These days lot of software and android application service-based companies emerged and established themselves in a short period of time because of innovative ideas. Also, some improvement in the existing product (Product design and Redesign) might be a reason behind the successful product.
Thus, innovation is the trump card of an entrepreneur performs many other useful functions. He undertakes a venture, assumes the risk and earns the profit. He is a person having a strong motivation to achieve success. He is self-confident in his entrepreneurial abilities. He exploits opportunities wherever and whenever they arise.
Some other useful function of the entrepreneurship is given below.
- Deciding the project
- Raising finance
- Planning production
- Managing enterprise