Entrepreneur Functions

8/8/2019 Entrepreneur Functions

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Entrepreneur


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Entrepreneur definition

yAn individual, who identifies,recognizes upcoming opportunity and

is able to organize resources toestablish an enterprise capitalizing onthat opportunity is an entrepreneur.


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Qualities of successful entrepreneurs

y InitiativeIn the world of business,

opportunities come and go. He should be able

to initiate action and take advantage ofopportunity. Once you miss the opportunity it

will not come again. Therefore, initiative on thepart of entrepreneur is a must.


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y Willingness to assume riskIn any business there is

an element of risk. in other words it is not necessary

that every business shall earn profit. This detersindividuals to take up business. However, anentrepreneur always volunteers to take risks to run a

business and be successful.


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y Ability to learn from experience

An entrepreneur maycommit mistakes. However, once an error is

committed, it should not be repeated as that will leadto heavy losses. So, one should learn from hismistakes.


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y Motivation

Motivation is key to success. Once

you get motivated to do something you will notrest unless you complete it. For example,sometimes you become so much interested inreading a story or a novel that you do not sleep

unless you complete it.


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y Self-confidence

For achieving success in life, oneshould have confidence in himself or herself. A

person who lacks confidence can neither do any workhimself nor can inspire others to work. Selfconfidence is reflected in courage, enthusiasm andthe ability to lead.


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y Orientation towards hard work

There is no substitutefor hard work in life. While running a business,

everyday, one problem or the other may arise. Thebusinessman has to be vigilant about it and solve itas early as possible. This requires hard work on thepart of entrepreneur. He cannot afford to say thatnow office time is over and I will not work.


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y Decision making ability

In running an enterprise, theentrepreneur has to take a number of decisions. He shouldtherefore be capable of taking suitable and timely decision.In other words he must take right decision at the right time.In the present world things move very fast. If anentrepreneur does not have the ability to take timelydecision, he might miss opportunity and incur losses.


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Functions of an entrepreneur

y Identifying entrepreneurial opportunity

There are

many opportunities in the world of business. Anentrepreneur senses the opportunities faster thanothers do. And therefore, keeps his eyes and earsopen and apply imagination, creativity andinnovativeness in attaining business success.


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y Turning ideas into action

An entrepreneur shouldbe capable of turning his ideas into reality. He

collects information regarding the ideas, products,practices to suit the demand in the market. Furthersteps are taken to achieve the goals in the light of theinformation collected.


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y Feasibility study

The entrepreneur conducts studiesto assess the market feasibility of the proposed

product or services. He anticipates problems andassesses quantity, quality, cost and sources of inputsrequired to run the enterprise. Such a blue print ofall the activities is termed as a business plan or aproject report.


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y Resourcing

The entrepreneur needs variousresources in terms of money, machine, material, and

men to running the enterprise successfully. Anessential function of an entrepreneur is to ensure theavailability of all these resources.


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y Setting up of the Enterprise

For setting up anenterprise the entrepreneur may need to fulfill some

legal formalities. He also tries to find out a suitablelocation, design the premises, install machinery anddo many other things.


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y Managing the enterprise

One of the important functionof an entrepreneur is to run the enterprise. He has to

manage men, material, finance and organizeproduction of goods and services. He has to marketeach product and service, after ensuring appropriatereturns (profits) of the investment.


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y Growth and Development

Once theenterprise achieves its desired results, the

entrepreneur has to explore another higher goal forits proper growth and development.

The entrepreneur is not satisfied only with achievinga set goal but constantly strives for

achieving excellence.


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Successful entrepreneurs

y Arun Jain, Chairman & CEO of Polaris SoftwareLab Limited, emphasizes that it is quality

consciousness which has made him one of the mosthighly successful first generation entrepreneurs.


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y Dhirubhai Ambanis company Reliance is one of thefewIndian enterprises truly on the world stage employing thousands of people and with a turnover

of many crores of rupees.


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y MadhuriMathur, made the life of ladies in kitcheneasier by bringing out the idea of a kitchen machine

that would blend, chop, mince and grind thatculminated into sumeet mixer.


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y Shahnaz Husain introduced herbal cosmetics to theworld. Her creams and lotions have found their

way into salons in different parts of the globe. Shehas 650 salons at 104 countries.


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y As the inventor of Hotmail, Sabeer Bhatiastrengthened India's IT revolution. Hotmail went

from strength to strength as the Web emailaddress of choice for an estimated 200 millionusers worldwide.


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Shri Jhunjhunwala is an Entrepreneur

y Shri Jhunjhunwala of Varanasi is a businessmanengaged in the production of Jhula Vanaspati. Hestarted his business career from a humble

beginning. He had a small retail shop of oil andghee. His earning was limited and not sufficient tomeet the needs of his family. He started looking foran opportunity to earn more.

Entrepreneur Functions

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