Q.Explain the functions of an entrepreneur.

The main functions of an entrepreneur are: spotting an opportunity, planning the enterprise, arranging finance and resources, organising the factors of production, innovating, decision-making, risk-bearing, and overall management and coordination. This is a standard TS Inter 2nd-year Commerce / NCERT-aligned entrepreneurship question.

Functions of an Entrepreneur

An entrepreneur is the driving force behind a business. The important functions performed by an entrepreneur are:

1. Identifying business opportunities — scanning the environment to discover a viable idea or an unmet need in the market.
2. Planning and promotion — preparing the plan of the enterprise, deciding its form, size and location, and completing the formalities to set it up.
3. Arranging finance — estimating capital requirements and raising funds from owned and borrowed sources.
4. Assembling resources — procuring land, machinery, raw materials, technology and skilled manpower, i.e., organising the factors of production.
5. Organisation and management — bringing the resources together and directing them efficiently towards the goals of the enterprise.
6. Innovation — introducing new products, new methods of production, new markets or new forms of organisation to stay competitive.
7. Decision-making — taking all key decisions regarding what to produce, how much, at what price and how to sell it.
8. Risk and uncertainty bearing — this is the most distinctive function; the entrepreneur invests capital and bears the risk of loss, since future returns are uncertain. …