Role Of The Entrepreneur
1. Conceptualising: The entrepreneur must create ideas in connection with the kind of business and the nature of the product that he has. He needs to consider the volume of production in order to attain a profit.
2. Planning: This involves the entrepreneur to think about the future and what is to be done in the future in connection with what has been conceptualised. The planning involves short-term as well as long-term plans. On the whole, guidelines, policies and organisational structure will have to be created. Planning also consists of making known the functions or duties of managers and setting objectives to be attained, for example, levels of production and sales targets.
3. Accessing funds: The entrepreneur is in charge of attaining funds or finances before production commences and at any time the business requires extra capital for growth. Besides savings, the entrepreneur can use other sources of finance, including:
1) Influencing foreign investors
2) Financial institutions
3) Borrowing from friends and family
4) Getting partners
4. Organising: This entails getting together the other factors of production in order to guarantee effectiveness, greatest production and greatest profits.
5. Operating: After getting ownership of the business, making short-term and long-term plans and organising the other factors of production, the entrepreneur must begin to operate or manage the business. The functional areas of production, marketing, finance and personnel are involved in operating the business. As a result there is production and sale of goods and services to make a profit.
6. Assessing the performance of a business: A manager needs to assess or evaluate. This is prepared at the closing stages of the production process to spot if the total process has been successful and to spot if the objectives of the organization have been attained. Difficulties and failures are looked at again and ideas are brought forward and established to prevent these difficulties in the future.
7. Bearing risks: A risk can be defined as a chance. There are two kinds of risks: a) insurable and b) non-insurable risks. It is the accountability of the entrepreneur to create policies against those risks which can be insured, for instance, the intimidation of stealing, fire, natural disaster, etc. However risks which cannot be insured against must be tolerated by the entrepreneur. Such risks are called uncertainties, for instance, an unexpected alteration in the demand for the product. Entrepreneurs must be ready to take risks or chances so that they can make profits.
8. Attaining profits or the bearing of losses: After organizing the factors of production successfully and bearing risks the business should gain a profit. In order to gain profit, the entrepreneur must sell the goods or services for more than they cost him to produce. In other words, average revenue must exceed average cost. In the event that he sells for below than it costs him to produce, he will make a loss.