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• 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.
• 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
finalizing with the source of money proper planning of the finance in terms of short term and long-term goals are
very important.
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 organizing 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 organization.
• Staffing: It means giving jobs to the suitable person in an organization. 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 energizes the activities and canalizes the behaviour of the employees for the common goal of an
organisation. Employees with high motivation are very productive and perform their duties successfully.
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 standardized
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.
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