The role of the entrepreneur is to create and grow businesses. But what does being an entrepreneur entail? The main functions of an entrepreneur are risk-taking, provisioning of capital and organization of production and the day-to-day conduct of business. What isn’t included in these is providing resources such as labor, materials or facilities, which is the focus of the management team, not the entrepreneur.
Entrepreneurship brings with it a certain degree of risk. Every business venture carries the possibility of failure, and the entrepreneur must be willing to take the necessary risks to make it succeed. This means being comfortable with uncertainty and taking calculated risks based on sound research and analysis.
Provisioning of Capital
In most cases, entrepreneurs must finance their business ventures themselves. This means they must be able to provide the necessary capital to get the business up and running. This capital may come from personal savings, investments from family or friends, or loans from banks or other financial institutions.
Organization of Production and Conduct of Business
The entrepreneur must be able to set up and manage the operations of the business. This includes such tasks as selecting and managing personnel, developing and implementing operational plans, and allocating resources. The entrepreneur must also be able to create a successful marketing and sales strategy in order to generate revenue and ensure profitability.
To summarize, the main functions of an entrepreneur are risk-taking, provisioning of capital and organization of production and the day-to-day conduct of business. The entrepreneur is not responsible for providing resources such as labor, materials or facilities. The ability to manage risk, provide capital, and set up a successful business are all key skills for the successful entrepreneur.