Q.Explain the functions of Entrepreneurs.

An entrepreneur conceives, organises and runs an enterprise while bearing its risk. The key functions are innovation, risk and uncertainty bearing, decision-making, organising and coordinating resources, arranging finance, and managing and controlling the business.

Functions of an Entrepreneur

An entrepreneur is the person who brings together the factors of production, takes the risk and sets up and runs a business. In the TS Intermediate 2nd-year Commerce entrepreneurship-development unit, the functions commonly studied are:

1. Innovation — introducing something new: a new product, a new method of production, a new market, a new source of raw material, or a new form of organisation (the Schumpeterian view).
2. Risk and uncertainty bearing — the entrepreneur invests money without any guarantee of return and bears the risk of loss if the venture fails.
3. Decision-making — deciding what to produce, how much, where, with what technology, and how to price and sell it.
4. Organising and coordinating — assembling and combining land, labour, capital and enterprise, and coordinating them for smooth working.
5. Arranging finance — estimating the capital needed and raising it from owned and borrowed sources, and managing it well. …