In the modern economy, the word we often hear is ‘Entrepreneur/Entrepreneurship’. But what does it mean, what an entrepreneur actually does, and what are the functions of Entrepreneur? Sometimes people get confused between businessman and entrepreneur. They think that both are the same but It’s not true.
An Entrepreneur is a person who creates/innovates something new and aware of the risk and reward associated with it. The prime focus of an entrepreneur is innovation. But for a businessman, the prime objective is to sell the goods/services.
We all have read or heard about the successful entrepreneur but never tried to find out what are key functions of an entrepreneur that make the business successful. So, let’s dig deeper into the conversation without losing a single sec and find the functions of Entrepreneurs.
15 Powerful Characteristics and Functions of Entrepreneurs You Must Have
- Taking Initiative: An Entrepreneur always takes initiative to do something innovative, business decisions according to risk, and decide which is beneficial for the community.
- Risk Taking: Taking risks is the identity of a successful entrepreneur. Every innovative work is associated with risk and only an entrepreneur can take that risk. Steve Jobs, Bill Gates, and Elon Musk are of them.
- Forecasting the changes in business: Sometimes some entrepreneurs follow every right step for their business but forget about forecasting. As an entrepreneur, you have to be prepared for future changes. And this can be possible by doing forecasting analysis based on past data and what is going on in the market currently.
- Identifying the Opportunities: A good entrepreneur is always ready for new opportunities to grow their business. It looks for a new market where the business can expand, observe the consumer demands carefully, and always be ready to innovate something new that can fulfill that demand.
- Organizing the Resources: For any industry organizing the resources is an important process and if you are an entrepreneur then it’s a must-do thing. When I’m saying organizing the resources that mean humans that are related to your business, machinery, and other resources.
- Management: This is one of the important functions. After establishing an enterprise, the real test of an entrepreneur starts. He/She must be capable of running the management and handling all the administration with the activities like planning, control, organizing, etc.
- Decision Making: For a successful business, an entrepreneur needs to take the right decision at the right time. These decisions can be related to anything like where to find a market, which kind of consumers to be targeted, research about the product/service, cost of the product, and many more.
- Innovation: An entrepreneur always tries to innovate a new product/technology, market, new strategies for business, best sources of raw materials, etc. Innovation is also called a fundamental characteristic of entrepreneurship.
- Reducing Risks: As I’ve earlier mentioned the risk associated with the innovation. But when entrepreneurs start a business, their priority is to reduce the risk that can affect their businesses. They spend a lot of time doing analysis and forecasting to reduce that risk.
- Giving Back to Community: With innovative technology, entrepreneurship helps to start closed industries and provides opportunities for the people to join the industry and earn living for themselves. Sometimes the product/technology helps the community too.
- Sharing the wealth: When an entrepreneur is about to start a business, takes the money or any other help from the people surrounding him or her. Once the business is established he/she can allow people to invest in his/her business. That would be beneficial for the people, the business, and also the economy.
- Digitalization of Business Operations: As we all are aware technology is improving every day and for a successful business, the entrepreneur needs to go with the technology. For example, they can focus on new methods of research to reduce overall cost, use the latest marketing tools, provide training to the people in the organization, etc.
- Maintaining the Relation: For a successful business, an entrepreneur needs to maintain good relations with the employees who are working for him/her. Also, he/she needs make to relate to government authorities, consumers, and the suppliers in the market. All these are the pillars that hold the business strongly and make functions of entrepreneurship development great.
- Motivates Employee and Society: A successful entrepreneur always try to motivate others by guiding or helping in another way. The entrepreneur motivates its employees by rewarding them, providing a good salary, and organizing the sessions for them to share their problems or ideas. Same it does to society, like sharing knowledge, providing internships to students, and many more.
- Helping in Economic Development in a balanced way: When I say a balanced economic development then I mean that in a particular country, every region should be developed economically equally. And only entrepreneurs can make it possible.
They established the business venture in different parts and provide opportunities to everyone and that helps the country’s economy too. Above are some basic functions of an Entrepreneur that need to run a successful business. Let us know in the comments if you have any other points which also need the most.