Page 90 - Data Science class 10
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• Financing: An entrepreneur determines the amount of capital needed to start a new venture and to run it
          smoothly till the time the business has not started gaining profits. This capital can be raised by investing his
          personal savings, taking a loan from the banks and in case it is a big venture then can be through shares and
          debentures. After finalising with the source of money proper planning of the finance in terms of short-term and
          long-term goals are very important.

        4.4.3. Managerial Functions

        An entrepreneur needs to perform the following managerial functions:
           • Planning: It helps in smooth and effective running of a business. It focuses on the necessary steps to make
          business ideas succeed and determine the course of action to achieve short-term and long-term objectives. It
          finds potential markets for a new venture and reduces the uncertainty related to financial and competitive factors.
           • Organizing: It involves organising the resources, finances and work to increase the productivity of a business. It
          also involves assigning work to people in different departments, creating the levels of authority and reporting so
          that the work is divided, and the right people should be given the right jobs to reduce redundancy and increase
          the efficiency.

           • Directing: It is assigning the jobs to the people working in an organisation to increase the productivity of the
          business and to achieve the predetermined goals. It is a continuous process and takes place at every level of the
          organisation.
           • Staffing: It means giving jobs to the suitable person in an organisation. This involves planning and recruiting
          the employees for different departments in an organisation by evaluating their skills and knowledge. It also
          includes training and development, appraisal and remuneration of workers to maintain a satisfactory workforce
          in an organisation.
           • Leadership: It is a formal and informal way of using power and authority to lead, guide and supervise people
          who work for the business. It will motivate the others to complete a series of important tasks in attaining
          specified goals of an organisation.
           • Communication:  A good communication skill  will help an entrepreneur in the sharing of ideas, feelings,
          emotions, knowledge  and  information with  the people working  in an organisation.  Sharing  successes  and
          failures with your people will help an entrepreneur build a strong bond with the people and give them a sense
          of belonging to the company.
           • Motivation: An entrepreneur motivates his employees by encouraging positive behaviour and culture within
          the organization. It energises the activities and canalises the behaviour of the employees for the common goal
          of an organisation. Employees with high motivation are very productive and perform their duties successfully.


        4.4.4. Commercial Functions
        An entrepreneur needs to perform the following commercial functions:

           • Production  and Operations:  It is  the process  of converting the raw  material or inputs through a set of
          standardised systems into a finished product that can be sold to customers. It needs continuous monitoring and
          improving quality standards to achieve maximum level of customer satisfaction. Some of the activities related to
          it are related activities getting the raw materials, machinery functioning and maintenance, working of the labour
          with full capacity, meeting order requirements, etc.
           • Finance and Accounting: It refers to the recording and analysing of business activities on the basis of available
          financial resources. It is very important to maintain the record of incoming and outgoing money so that its
          proper utilisation is done. Money is needed for the initial setup of an organisation, paying the salaries of the
          employees, meeting the maintenance cost and further expansion and development of an organisation.



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