Conception of an idea:
Entrepreneur is the person with a creative mind
Identify business opportunities
Take steps for the conversion of ideas into successful business ventures
Give them a concrete shape.
Entrepreneur undertakes the risk of setting up a small enterprise as a sole proprietor.
Now-a-days many entrepreneurs have assumed the role of promoters of large companies.
Promotion may be undertaken for setting up a new business, small or large expansion of an existing business or for combining two or more business firms.
Entrepreneur has to conduct feasibility studies, decide to the form of organisation, assemble the required funds and people, and give a concrete shape to the business proposition.
Entrepreneur is also seen as an innovator
Entrepreneur tries to develop new technology, products and markets.
The entrepreneur uses his creative abilities to do new things and exploit opportunities in the market.
Bearer of risks and uncertainty:
Starting of a new business venture involves good amount of risk and uncertainty.
The entrepreneur who assumes risks and is prepared for the losses that may arise because of unforeseen situations in future.
Willingness to take risks that helps him to take initiatives in doing new things or trying new methods of production.
Arranging necessary capital:
Arranging funds is one of the biggest hurdles in setting up a new entrepreneur.
To provide the initial capital
Raising additional funds required to carry on and expand the business
Entrepreneur has to design the organisational structure and recruit suitable persons for various positions.
He also makes an estimate for skilled and unskilled workers
Makes arrangements for their recruitment.
An entrepreneur is also known as the promoter
The requisite funds and people undertake the risk and give a shape to the business proposition.
Those who visualise a business opportunity and are ready to bear the risk are termed as ‘entrepreneurs’
Those who take steps to set up the business and make it operational are known as promoter.
But in actual practice, such distinction does not hold well because the role of entrepreneur, now-a-days, does not confine only to identifying a business opportunity and his readiness to bear the risk.
It also extends to taking necessary steps to set up the business and make it operational specially because facilities like venture capital and services of professional are readily available.
Some economists identify the basic entrepreneurial function as
Emphasised the coordination of production resources
Provision of capital
The introduction of innovations.
More practical approach would be to treat entrepreneurship as a wider term which includes promotion.
Most promoters of business unit in India happen to be the entrepreneurs themselves and in a family run business, the entrepreneur is owner as well as manager.