Functions of Entrepreneurs
An entrepreneur perceives an opportunity and creates an organization to pursue it. They do various tasks like planning, organizing, and seeing the overall behaviors of the businesses. Different types of entrepreneurs perform different functions. They perform functions based on their qualities and knowledge. The basic functions of entrepreneurs are as follows.
1. Planning
Planning is the future course of action. A business person prepares the plans according to their resources and goals. They choose the best idea to start the new venture. It is a systematic course of action to set and achieve targeted goals at the right time. Plans help them stay on the right track and navigate challenges.
They specify the purposes concerned with business. They collect all the information about it and prepare plans, which plan would help to achieve goals. The business plans consist of production, marketing, and financing activity. It defines all actions to put business ideas into reality.
2. Organizing
Organizing is the process of managing resources to start a business. It is a process of arranging tasks, resources, and authority among the venture employees. Collected financial and non-financial resources are divided according to job description. It provides the ground pattern for the new venture in a competitive market.
They make groups of tasks and divide them into various positions and members. They coordinate how to get a defined target by managing available resources.
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3. Mobilizing Resources
Resources are financial and non-financial. Those are men, material, wealth, and other resources. Entrepreneurs strategically use those resources. They use their skill and knowledge for the appropriate mobilize the available resources appropriately. Mobilizing resources helps to analyze the strengths and weaknesses of the business.
Proper mobilization of resources makes the venture able to progress the venture. It supports work efficiency, and quality products and provides customer-based services. Resource mobilization is an important function of entrepreneurs to smooth the run of business on the right track. The best utilization of resources helps to check and balance in a competitive market and also helps to earn foreign currency through the export of products.
4. Relationship Management
Entrepreneurs make smooth relations among the different members, which may be internal or external parties. The relationship helps to coordinate business activities and obstacles management. Entrepreneurs manage sound relations between suppliers and customers. Customers are an important part of the business. Their use of products supports to stay in the market.
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Entrepreneur coordinates internal members’ problems and feedback. Resolving the problems helps to motivate employees. Motivated employees help to higher productivity. They also manage relationships with governments and their ministries, departments, and regulatory agencies. It helps with policy-making, tax concessions, and so on.
5. Control
Control is also an important function of the venture. Entrepreneurs control the resources for use by beneficiaries. Control of resources helps to assess whether available resources are used properly or not. It discovers the gap between achieved results and results expected. It helps to detect the weaknesses of entrepreneurs and make them responsible for the venture objective.
It is concerned with financial control, which helps to minimize costs and reduces wastage. The managing economy in products derived the entrepreneurs to the proper controller in a business. Entrepreneurs make decisions and perform activities for quality products to survive in the market.
Conclusion
All the overall functions are important for an entrepreneur. It manages the tasks of entrepreneurs for the smooth run of the venture. The venture is the creation of ideas into reality. For the creation of a venture, the business person makes decisions, sets goals, and takes action to achieve the targeted goal appropriately.
Utilizes collected resources, manages relations, and assesses the performed task. Such things help creativity in business and the growth of business. Managing all these functions helps the business person to run ventures smoothly, effectively, and successfully.
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