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I hope, you'll would be in good health and prosperity. Well, i couldn't write blog earlier, so i did thought that, now is right time. The topic of blog is entrepreneur. In this blog, i'm going to discuss who is entrepreneur, qualities of good entrepreneur and functions of entrepreneur. let's begin.
Who is Entrepreneur
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"An individual who assemble and organizes factors of production to undertake a venture with a view of profit".
An organizer or entrepreneur is a man who starts production, by bringing together other factors, co-ordinates, supervises and manages them and bears the risk of profit or loss.
According to Prof. Knight
"An entrepreneur is a person who perform dual function of risk taking and control".
According to Prof. Benham
"Organization means directing, deciding and designing the forms of business".
According Prof. Jackson and Prof. Mclver
"An entrepreneur is the human resource which combines with other resources to produce a product, make non-routine decision, innovate and bear risk".
Thus, the entrepreneur is the organizer of production and the one who visualizes the demand and convinces the individuals who own the factors of production that they want to produce that good. Similarly, the entrepreneur also must convince demanders that what the entrepreneur is producing is what the demander want.
According to Prof. J.A. Schumpeter
"The entrepreneur is one who combines factor of productions to carry out the production process. He is not just an investor but also the one who can be manager. An entrepreneur is dynamic and possesses initiative and foresight. He is risk taker and an innovator".
Qualities of good Entrepreneur
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An entrepreneur must possess multi-qualities of head and heart to make the business the most successful. The various qualities of an entrepreneur are as under mentioned.
An entrepreneur must be far-sighted. He should possess the ability to foresee changes in the market.
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An entrepreneur must be courageous to meet the challenge and difficulties of business.
3.Quality of organizing the labour:
An entrepreneur must have the quality of good organizer. He must be sympathetic, flexible and helpful to remove genuine problems of the labour force.
4.Quality of Leadership:
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An entrepreneur must have the quality of leadership. He should have the capacity to influence people and win their confidence. He must be thoughtful and skilled.
An entrepreneur must be experienced and skilled. Experience makes even a man of average intelligence an efficient entrepreneur.
6.Knowledge of business:
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An entrepreneur must be familiar with the business activities. That is, he should be master of his trade.
7.Knowledge of Psychology:
An entrepreneur must be a good administrator having knowledge of psychology of his worker.
Function of Entrepreneur
Following are the important function of entrepreneur.
1.Planing and initiating the business:
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The most important function of an entrepreneur is to plan and initiate the business. First, he select the business. The business may be consumption oriented or production oriented may involve the production of necessary goods or luxurious goods. It is the entrepreneur who decides the nature of business according to the size of investment. He also select the location of the business. With the given resources, he determines the size and the shape of production.
2.Managing the business:
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The day-to-day administration of the business is in the hands of entrepreneur. He directly supervises the different parts of production and check the abuses. The raw material and other things required for the production are purchased by the entrepreneur. He disburses the remuneration to the labourers and settle the industrial disputes. He also undertakes the responsibility of marketing the final products.
3.Organizing the business:
With the help of the proprietor, the entrepreneur raises the financial resources for investment, he buys the necessary equipment like tools, machines, implement for the production of goods and services. He coordinates the various processes of production by establishing a link between the various stages of production.
4.Bearing the risk:
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In modern age, it is highly risky, because if the anticipated demand falls, the entire business will be affected. In such a situation, it is duty of entrepreneur to overcome the risks. It is for minimizing such risks involved in business that an entrepreneur is paid the profit.
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The economists like Prof. J.B. Clark, Prof. Schumpeter consider innovation as the most important function of an entrepreneur. It denotes introduction of an new product, new techniques, method and new market in competitive world.
6.Provision of labour:
In the modern era, different type of labour are required to produce one type of commodity. The entrepreneur has of make provisions for labour from different states.
7.Allocation of income:
An entrepreneur distribute the income among different factors of production. Entrepreneur own profits may be negative, but he must have to pay reward for the services rendered by the various factors of production.
8.Selection of site:
An entrepreneur has to select the location, where he has to install the factory. The place should be, if possible, near the market, railway station, bus stand.
Prof. Benlam has observed that an entrepreneur has to take important decision. What type of goods and services should be produced, how much goods and services should be produced, what method of production should be adopted, where should his plant be located.
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An entrepreneur has to make advertisement of the quality of his product through various sources like radio's, magazine, television and so on. Advertisement is done to create the confidence among the people about his product. So, that the demand may be increased.
11.Provision of capital:
Capital is required to install a factory or an industry. Capital required at all the stages of business. It is not necessary that the entrepreneur should invest his own capital. Therefore, he has to trace out a capitalist, to make provision for capital for the investment. He tries to obtain capital at lowest possible rate of interest.
12.Provision of raw material:
It is the entrepreneur who makes provision for raw material. He purchases the best quality of raw material at the minimum cost. he also knows the sources of raw material.
13.Division of labour:
The splitting up of production into different part and entrusting them to different workers is also the function of an entrepreneur. Thus, entrepreneur decides the level and type of division of labour.
14.Contact with government:
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The entrepreneur has to make contracts with the government because the modern production system controlled by the government is several ways. A license is taken before the start of the business. The entrepreneur has to abide by certain rules and regulation of production and has to pay taxes regularly.