An entrepreneur is a person or a group of people wno are responsible for the organisation and the co-ordination of a firm or a business entreprise.
The stuccess or failure of the business depends, to a very great extent,
managerial functions of the entrepreneur. for a business to are two distinct functions which an entrepreneur needs
to carry out. These are
(1). Management control and
(2). Risk bearing
For clearity and simplicity, these are subdivided and discussed briefly below.
The ability to make policy decisions and the effective implementation of such policy cannot be over-stressed. He needs to decide the type and scale of production to adopt. That is the type of commodity to be produced whether on small or large
scale of production.
The decision of the type of advertisement to undertake, for the produced goods is his. With regard to the marketing of the products, he decides the price at which each unit of the commodity would be
sold. In doing this, he must, be able to put into consideration the cost of production and the market situation as at that time.
It is the duty of the entrepreneur to organise and co-ordinate a other agents of production Land, Labour and Capital. In order to produce most efficiently, the entrepreneur needs to combine these
agents or factors in the right proportion.
He is responsible for the payment of necessary remuneration to the other factors of production. For example, he makes sure that 'Rent' is paid to land, interest to capital, while wages are paid to labour.
The entrepreneur is a risk bearer his risk are of two kinds:
(1). Risk ot certainty
(2). Risk of uncertainty,
Certain risks such as loss of goods in transit and fire disaster are risks that can be insured against because statistics make it possible, for the insurance companies to be able to calculate their probabilities of occurrence.
The other risk is termed risk of uncertainty. Such include all the risks that cannot be insured against because it is not possible to calculate their probability. An example ot these is the future demand for a produced commodity. It is very difficult if not impossible to predict the future demand for a commodity. It there is a high demand for a commodity in the future, the business will prosper but if there is no demand for it, it could collapse. These are the types of risks which an entrepreneur needs to bear and guide against in a business organisation. If the business is to succed, the entrepreneur must be capable of performing the above stated functions in the business organisation
(one). Management control and
(two). Risk bearing
These are two very important points that every entrepreneur must keep in mind at all times, it will make a big difference, it is not easy to be an entrepreneur but it is not difficult when you follow the best suitable guidelines or those that adapt to the venture you want to start, .
Perfectly explained. Thanks for your valuable comments
An entrepreneur will always have to take into account the risks, both in the business and in the other, (in life), it is not easy to undertake and at the beginning everything is much more difficult. You just have to have clear strategies for when those moments come!
You are right. Thanks for your valuable comments
@tipu curate
Upvoted 👌 (Mana: 16/32)
Thank you
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