Friday, June 10, 2011

What are the functions that an entrepreneur should perfofm?

What are the functions that an entrepreneur should perfofm? or,
What are the functions of an entrepreneur?

Functions of an entrepreneur:-
As an entrepreneur a businessman is to perform different tasks in different situations. These tasks sometimes can be done sequentially and sometimes they just need to be done. The sequential functions of an entrepreneur are as follows:-
a. Idea generation and scanning of best suitable idea.
b. Determination of the business objectives.
c. Product analysis and market research.
d. Determination of form of ownership or organization.
e. Competition of promotional formalities.
f. Raising necessary funds.
g. Procuring machine and material.
h. Recruitement of men.
i. Undertaking the business operations.
The above are the main functions that an entrepreneur needs to perform. There are some other functions that an entrepreneur should also perform. They are not sequentialized. The functions are listed below:-
a. Taking initiative.
b. Risk and uncertainty management.
c. Determination of the appropriate distribution channel.
d. Making realistic plan.
e. Performing legal formalities.
f. Proper distribution of business surplus among the interested groups.
g. Maintaining useful social contact.
h. Introducing cost control measures.
For example - Michael Dell, innovator of the Dell Computers. He has performed all the above functions of an entrepreneur. He first found out the idea what to do. The idea was to sell computers. Then he undertook an objective to provide with the customers what they want with the customized way of selling computers introducing the Bill to order method. He did product and market analysis. Then determined the way his organization will be operated. He accumulated the funds to operate it. He collected machinery and recruited only three men in his organization at first. Then he operated his business swiftly.
Source: Here 
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