Entrepreneurship

According to A Schumpeter “The entrepreneurship is essentially a creative activity or it is

an innovative function”.

Entrepreneurship plays an important role in the economic growth and development of nation. It is a purposeful activity includes in initiation, promotion and distribution of wealth and service. An entrepreneur is a critical factor in economic development and an integral part of the socio-economic transformation.An entrepreneur performs a series of functions necessary right from the genesis of an idea up to the establishment and effective operation of an enterprise. He carries out the whole set of activities of the business for its success. He recognizes the commercial potenCTIONStial of a product or a service, formulates operating policies for production, product design, marketing and organisational structure. He is thus a nucleus of high growth of the enterprise.

FUNCTIONS OF ENTREPRENEUR

1. Risk-bearing function:

 The entrepreneur assumes all possible risks of business which emerges due to the possibility of changes in the Technology, govt regulations, tastes of consumers, modern techniques of production and new inventions. a good entrepreneur should forecast all of this uncertainties and risks .

The entrepreneur, according to Kinght, "is the economic functionary who undertakes such responsibility of uncertainty which by its very nature cannot be insured nor capitalized nor salaried too."

Richard Cantillon conceived of an entrepreneur as a bearer of non-insurable risk because he described an entrepreneur as a person who buys things at a certain price and sells them at an uncertain price.

2. Organisational Function:

Entrepreneurship is a funtion of coordinating all the factors of production under one head. that is the main of an Entrepreneur. so he should organize all the factors of production such as man, material, money, and organization.

3. Innovative Function:

According to Peter Drucker, "Innovation is the means by which the entrepreneur either creates new wealth producing resources or endows existing resources with enhanced potential for creating wealth".

J.A. Schumpeter considered economic development as a descrete dynamic change brought by entrepreneurs by instituting new combinations of production, i.e. innovation. According to him innovation may occur in any one of the following five forms.

innovation is the one of essential factors in the success of an Entrepreneur in his business, for example Steve jobs was one of famous innovator in all over the world, his all products were innovative.

so innovation is must for survive, customers are not interested purchase existing products, they wants innovation, that is the duty of an Entrepreneur.

4. Managerial Function:

an Entrepreneur is a good manager also, he doing the all the managerial functions such as planning, organizing,  staffing, directing and coordinating


5. Decision Making Function:

The most vital function an entrepreneur discharges refers to decision making in various fields of the business enterprise. He is the decision maker of all activities of the enterprise. A. H. Cole described an entrepreneur as a decision maker and attributed the following functions to him.