ROLES OF AN

ENTREPRENEUR
Entrepreneur Roles:
1. Innovation:
An entrepreneur is a change agent. He introduces something new in some branch of economic activity. It
may be a new/improved product/service, a new method of production /distribution, opening of a new
market, discovery of a new source of raw material, a new form of organisation, a new combination of
means of production, etc. In fact, ‘’Innovation is the Hallmark of Entrepreneurship”.
2. Risk-taking:
Risk-taking means assuming responsibility for the loss that may take place due to contingencies. An
entrepreneur pays wage/salary to employees, rent to the landlord and interest to the lenders. After
making these payments nothing may be left as profit. ‘No Risk No Gain’ is the saying in business. An
entrepreneur tries to reduce risk and uncertainty in his plan of investment, expansion and diversification
of business.
3. Organisation building:
It implies bringing together the various factors of production the purpose is to allocate the productive
resources in order to minimize losses and reduce costs in production. An entrepreneur takes business
decisions Land, labour and capital are all separately owned and scattered all over the world . It is the
entrepreneur who brings the together and harnesses them to work in production. A person may have own
capital, land or labour but ownership alone does not make him an entrepreneur. What is required is
organizing ability for assembling these factors of production in the right proportion to obtain the best
results.
Promotional Roles:
1. Discovery of an Ideas:
First of all, an entrepreneur discovers or generates a business idea. The idea may be to exploit a natural
resource, to enter into an existing line of business or to set up a venture in a new line of business. While
discovering a business idea, entrepreneur may take the help of experts.
2. Detailed investigating:
Once the idea is discovered, a through analysis is done to estimate the total demand. The resources required to
convert the idea into a product/service are identified.
3. Assembling the requirements:
Next steps, the entrepreneur takes, is to assemble the necessary resources. He chooses the factory sit, selects
plant and machinery and contacts suppliers of raw material.
4. Financing the plan:
The entrepreneur estimates the funds required, selects the sources of raising the funds and decides the capital
structure of the enterprise