Page 97 - AI Ver 1.0 Class 10
P. 97
Perseverant
An entrepreneur's perseverance will help him keep going even in his difficult
times. He will always look for options which will help his business survive
and with the time flourish. His never give up attitude helps him keep going
in his venture even in the times of disappointments and failures. He is able
to manage by doing his best and then learning from what did or didn't work.
Functions of an Entrepreneur
An entrepreneur is the master of his own plans. He has the courage to put his plans into a business with a lot of
challenges. To keep his business going he had to perform multiple functions, let us discuss about some of them.
Entrepreneurial Functions
An entrepreneur needs to perform the following entrepreneurial functions:
• Organisation Building and Management: Building an organisation and managing it efficiently whether small
scale or large scale is a very challenging task for an entrepreneur. He has to take care of renting or buying a
place, hiring employees, organizing the factors of production, sourcing finance etc. At the time of allocating
these resources he should be able to manage his funds in a reasonable way to down costs and losses.
• Risk taking: Starting your own business always involves risk at different levels. Risk taking is an important
function of an entrepreneur where he should be taking responsibility for each action he does and planning for
a loss or mishap that may occur in the future due to unforeseen situations. Some risks may not pay off, but an
optimistic risk-taking entrepreneur will always look at failure as an opportunity to learn and may lead to another
kind of opportunity and innovation.
• Innovation: An entrepreneur uses his knowledge, experience and gathered information to convert his dream into
an innovative venture. This can be creating a new product, discovering new markets or new ways of organization
of industry. In today’s world, a new business cannot survive and sustain unless innovation has something that
adds some interesting values to its products.
Promotional Functions
An entrepreneur needs to perform the following promotional functions:
• Idea Discovery: Discovering a new idea is the first and the important phase of the entrepreneurship process. An
idea should involve serving the customers in a different and better way and also help in building the economy
of the country. After an idea is planned and an opportunity is identified and evaluated, then the entrepreneurs
work around the process of feasibility of an idea into a new venture by exploiting natural resources, finding a
market need or calculating the profit potential. This stage is critical because it is a foundation for developing a
business plan.
• Detailed Investigation: This helps in converting an idea into a potential venture. A particular idea needs to
be explored in terms of sources of supply, extent of demand, present and potential competition, the amount
of capital necessary and its worth in a realistic market where it is expected to generate sufficient revenues and
profits along with customer satisfaction.
• Assembling the Requirements: Assembling the basic business requirements like land to make an office,
infrastructure, human resources, initial investment with financiers to support, raw materials available and market
for selling the product. These are some common business requirements for all kinds of startups which may have
add-ons if a factory set up is required. It is a very time and money consuming process. Once this function is
performed, the project is set to start smoothly.
Entrepreneurial Skills-II 95

