Q.Explain any five functions of an entrepreneur.

An entrepreneur generates the idea, organises resources, takes key decisions, bears risk and uncertainty, and innovates. These are the five main functions.

Meaning

An entrepreneur is a person who identifies a business opportunity, brings together the resources needed to exploit it, starts an enterprise and bears the risk involved. In the AP Intermediate 2nd-year Commerce syllabus the entrepreneur is treated as the prime mover of a business, and the functions below are frequently asked.

Five Functions of an Entrepreneur

1. Idea Generation and Opportunity Identification — the entrepreneur scans the environment, spots a gap or a need in the market, and converts it into a viable business idea. This is the starting point of every enterprise.

2. Organising the Factors of Production — the entrepreneur assembles and coordinates land, labour, capital and enterprise, and arranges finance, machinery, materials and manpower so that production can take place.

3. Decision Making — the entrepreneur takes all the key decisions: what to produce, how much to produce, the technique of production, the location of the unit, and the selling price, and supervises the smooth running of the business.

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