The Significance of Organisational Skills and the Decision-making Role of the Entrepreneur

Dwayne
  • The entrepreneur takes on the uncertainty or risk of production by combining land, labour, and capital.
  •  The entrepreneur is generally an inventor bringing new products and services to the market.
  •  The entrepreneur takes risk by coming into the market to supply goods and services.
  •  The entrepreneur hires, brings together and rewards the factors of production for their resources.
  •  The entrepreneur raises money/finance before production starts.
  •  The entrepreneur makes decisions about what to pro­duce, how to produce, and for whom within the market.

 

1. An entrepreneur is someone who starts financial activity in a free enterprise system. He brings together land,
labour, and capital and takes the risk of production with the intention to make a profit.

 

2. In looking at the functions carried out by an entrepreneur are:

– The undertaking of uncertainty or risks

– Hiring, coordination (harmonizing) and rewarding of factors of production for their services

– Raising money/finance before production begins

– Moving of resources out of areas of lesser productivity to areas of more productivity and bigger output

– Creating something of worth out of basically nothing.

 

3. Some of the advantages of being an entrepreneur are:

– Self sufficiency or autonomy; which means the need for independence and free will to make decisions

– Job security; whereby being the owner of your own busi­ness means that one’s job is guaranteed

– Challenges; note there is a challenge or chance when running your own business.

– Monetary opportunities; the opportu­nity to make more money running one’s own business

– Community service whereby you contributing to the community

– Family employment whereby you can get members of your family to be employed.

 

4. To be successful, the entrepreneur needs to have certain skills such as:

– Employee relations

– Technical and technological skills

– Financial skills

– Marketing skills.

– Decision making skills

– Organisational skills

– Motivational making skills

– Planning skills

 

 

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