Answer:
An entrepreneur is a person who starts a business venture, organises the resources and bears the risk to earn profit. His functions are:
- Innovation: He introduces new products, new methods of production, new markets or new forms of organisation.
- Risk and uncertainty bearing: He bears the risk of loss due to changes in demand, competition, technology and government policy.
- Decision making: He decides the objectives of the enterprise, the product, the location, the size of the business and the sources of finance.
- Organisation building and management: He brings together land, labour, capital and materials and organises them; he plans, organises, staffs, directs and controls the business.
- Arranging finance: He estimates the capital required and raises it from suitable sources such as own funds, banks and financial institutions.
- Commercial functions: He looks after production, marketing, accounting and human resource management of the enterprise.
