The important functions performed by an entrepreneur are listed below:
An Entrepreneur has to perform a number of functions right from the generation of idea up to the establishment of an enterprise. He also has to perform functions for successful running of his enterprise. Entrepreneur has to perceive business opportunities and mobilize resources like man, money, machines, materials and methods. The following are the main functions of an Entrepreneur.
1. Idea generation : The first and the most important function of an Entrepreneur is idea generation. Idea generation implies product selection and project identification. Idea generation is possible through vision, insight, keen observation, education, experience and exposure. This needs scanning of business environment and market survey.
2. Determination of business objectives : Entrepreneur has to state and lay down the business objectives. Objectives should be spelt out in clear terms. The Entrepreneur must be clear about the nature and type of business, i.e. whether manufacturing concern or service oriented unit or a trading business so that he can very well carry on the venture in accordance with the objectives determined by him.
3. Rising of funds : All the activities of the business depend upon the finance and hence fun rising is an important function of an Entrepreneur. An Entrepreneur can raise the fund fro internal source as well as external source. He should be aware of different sources of funds He should also have complete knowledge of government sponsored schemes such a PMRY, SASY, REAP etc. in which he can get government assistance in the form of see capital, fixed and working capital for his business.
4. Procurement of machines and materials : Another important function of an Entrepreneur is to procure raw materials and machines. Entrepreneur has to identify cheap and regula sources of raw materials which will help him to reduce the cost of production and face competition boldly. While procuring machineries he should specify the technical details and the capacity. He should consider the warranty, after sales service facilities etc before procuring machineries.
5. Market research : Market research is the systematic collection of data regarding the product which the Entrepreneur wants to manufacture. Entrepreneur has to undertake market research persistently to know the details of the intending product, i.e. the demand for the product, size of the market/customers, the supply of the product, competition, the price of the product etc.
6. Determining form of enterprise : Entrepreneur has to determine form of enterprise depending upon the nature of the product, volume of investment etc. The forms of ownership are sole proprietorship, partnership, Joint Stock Company, co-operative society etc. Determination of ownership right is essential on the part of the entrepreneur to acquire legal title to assets.
7. Recruitment of manpower: To carry out this function an Entrepreneur has to perform the following activities.
a. Estimating man power requirement for short term and long term.
b. Laying down the selection procedure.
c. Designing scheme of compensation.
d. Laying down the service rules.
e. Designing mechanism for training and development.
8. Implementation of the project : Entrepreneur has to develop schedule and action plan for the implementation of the project. The project must be implemented in a time bound manner. All the activities from the conception stage to the commissioning stage are to be accomplished by him in accordance with the implementation schedule to avoid cost and time overrun. He has to organize various resources and coordinate various activities. This implementation of the project is an important function of the Entrepreneur.
