Q.Explain the functions of an entrepreneur.

An entrepreneur is expected to carry out a defined sequence of functions, from conceiving the idea to running the resulting enterprise.

An entrepreneur performs the following functions in bringing an enterprise into existence and keeping it running:

1. Idea generation / innovation -- conceiving a new product, process, source of raw material, or market, or a more efficient way of doing something that already exists.
2. Determination of business objectives -- deciding, in specific terms, what the enterprise will offer, to which market, and at what scale.
3. Raising and arranging resources -- mobilising the finance, land, machinery, and manpower needed, from personal savings, borrowed funds, or other sources of business finance.
4. Assembling resources into a working organisation -- combining land, labour, capital, and enterprise into a coordinated unit capable of actual production or trade.
5. Risk-bearing -- committing capital and effort to an outcome that is never certain, and personally absorbing the loss if the venture does not succeed.
6. Decision-making -- taking the day-to-day and long-term decisions the enterprise requires, from pricing and sourcing to expansion and diversification.
7. Managerial and supervisory functions -- in a small enterprise especially, personally planning, organising, staffing, directing, and controlling day-to-day operations, at least until professional managers are brought in.
8. Providing employment -- as the enterprise succeeds and grows, it creates jobs that benefit the wider economy.

Students sometimes limit the answer to only "risk-bearing" and "decision-making," leaving out the resource-mobilisation and organisation-building functions, both of which the BIEAP commerce marking scheme expects to see named separately.