Explain the functions of an entrepreneur.

Answer: An entrepreneur performs the following functions:

1. Innovation: The entrepreneur introduces new products, new methods of production, new markets or new forms of organisation.
2. Risk-bearing: He bears the risk and uncertainty of business, such as loss due to change in demand or competition.
3. Decision making: He decides the objectives, size, location, product and form of the enterprise.
4. Raising and managing funds: He estimates capital requirements and raises funds from various sources.
5. Organising and managing: He brings together land, labour, capital and other resources and co-ordinates them.
6. Market research and marketing: He studies the market and arranges for sale and distribution of products.
7. Dealing with government and public relations: He completes legal formalities, obtains licences and maintains good relations with society.