What are the function of a entrepreneurship 1?
Answers
Entrepreneurial Functions
Managerial Function
Promotional Functions
Commercial Function
Entrepreneurial Functions:
The major entrepreneurial functions include risk bearing, organizing, and innovation. Since these are already discussed under the heading 1.2 Evolution of the Concept of Entrepreneur, the same is, therefore, not discussed here again for the sake of repetition.
Managerial Functions:
The significance of management function lies in the fact that enterprises with excellent facilities and quality resources have floundered and fizzled out due to either no management or poor management and enterprises with good management but with poor facilities and resources have flourished and performed exceedingly well. In small-scale enterprises, the entrepreneur who is the owner of the enterprise also, has to perform the management functions as well.
The management functions performed by entrepreneur are classified ithe following five types:
1 Planning
2 Organizing
3.Staffing
4 Directing
5 Control
1Planning:
In common parlance, planning is pre-determined course of action to accomplish the set objectives. In other words, planning is today’s projection for tomorrow’s activity. Planning pervades in all aspects of business. An entrepreneur has to make decisions as to what is to be done, how it is to be done, when it is to be done, where it is to be done, by whom it is to be done and so
Organising:
The organizing function of an entrepreneur refers to bringing together the men, material, machine, money, etc. to execute the plans. The entrepreneur assembles and organizes the above mentioned different organs of an enterprise in such a way that these combinedly start functioning as one, i.e., enterprise. Thus, organizing function of an entrepreneur ultimately provides a mechanism for purposive, integrated and co-operative action by many people in a joint and organized effort to implement a business plan.
Staffing:
Staffing involves human resource planning and human resource management. Thus, staffing function of an entrepreneur includes preparing inventory of personnel available, requirement of personnel, sources of manpower recruitment, their selection, remuneration, training and development and periodic appraisal of personnel working in the enterprise.
Directing:
The functions like planning, organizing, and staffing are merely preparations for setting up a business enterprise. The directing function of entrepreneur actually starts the setting up of enterprise. Under the directing function, the entrepreneur guides, counsels, teaches, stimulates and activates his/ her employees to work efficiently to accomplish the set objectives.
Controlling:
Controlling is the last management function performed by the entrepreneur. In simple words, controlling means to see whether the activities have been performed in conformity with the plans or not. Thus, controlling is comparison of actual performance with the target or standard performance and identification of variation between the two, if any, and taking corrective measures so that the target is accomplished.
Promotional Functions:
Identification and Selection of Business Idea:
Every intending entrepreneur wants to start the most profitable and rewarding project. The selection of the most suitable business project involves a process. The intending entrepreneur, based on his /her knowledge, experience, and information gathered from friends and relatives, generates some possible business ideas which can be examined and pursued as a business enterprise.
Preparation of Business Plan or Project Report:
The entrepreneur prepares a statement called ‘business plan’ or ‘project report’ of what he / she proposes to take up. In other words, business plan is a well evolved course of action devised by entrepreneur to achieve the specified objectives within a specified period of time.
Requirement for Finance:
The entrepreneur prepares requirement for funds with its detailed structure. The financial requirement is also classified into short-term and long-term separately. Then, the sources of supply to acquire the required fund are also mentioned. How much will be the share capital in terms of equity and preference shares and how much will be borrowed capital from different financial institutions and banks are clearly determined.
Commercial Functions: Production / Manufacturing:
Once the enterprise is finally established, it starts producing goods or offering services, whichever be the case. Production function includes decisions relating to the selection of factory site, design and layout, types of products to be produced, research and development, and design of the product.
Marketing:
All production is basically meant for marketing. Marketing is the performance of those business activities that direct the flow of goods and services from producer to consumer or user. Thus, marketing essentially begins and ends with the customers. It is important to note that marketing is not just selling.