Q.Explain any one function of an Entrepreneur

An entrepreneur performs many functions — innovation, decision-making, organising and risk-bearing. Explaining any one: risk-bearing means the entrepreneur accepts the uncertainty and possible loss of the business in return for the expectation of profit. ## One function explained — Risk-bearing Among the main functions of an entrepreneur (innovation, organising the factors of production, decision-making, and risk-bearing), risk-bearing is a defining one. Every business faces uncertainty — demand may fall, costs may rise, new competitors may enter, or technology may change. Some of these risks can be insured (like fire or theft), but others, such as the risk that a product will not sell or that prices will fall, cannot be insured or passed on to anyone else. The entrepreneur personally bears these non-insurable risks. If the venture succeeds he earns the profit; if it fails he suffers the loss. It is because the entrepreneur is willing to bear this risk that the enterprise comes into existence at all. (Other functions, any one of which could equally be explained, include innovation — introducing new products or methods; organisation — bringing together land, labour and capital; and decision-making — choosing what, how much and where to produce.) …