Entrepreneurs are the people who identify the need for innovation and bring out innovation into existing ideas. When innovation is accepted and perceived by society, entrepreneurs perform some valuable functions.
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Being a budding entrepreneur, developing the skills needed by entrepreneurs should be the first and foremost concern. After that, there come functions of entrepreneurs.
You might be wondering about what are the major functions of the entrepreneur, so nothing to worry about.
In this article, I will be sharing some of the major functions of the entrepreneur that you must acquire to start an entrepreneurial journey.
Entrepreneurs are quite different from normal people because entrepreneurs must have an inspiring personality and must be capable of bringing ease and betterment to their society.
Peter Drucker says;
The entrepreneur always searches for the change, responds to it and exploits it as an opportunity
An entrepreneur is the one who opens up the path of opportunities not only for themselves but for others too.
The success of the nation is only possible when entrepreneurs of the nation are successful and success is achievable only when the functions of entrepreneurs are properly being followed up.
An entrepreneur requires to perform his/her major functions right from the start of the business until its establishment.
Top 5 Major functions of the Entrepreneur 2023:
Let’s have a detailed and comprehensive look at the major functions of an entrepreneur:
The promotional function is the first and foremost thing entrepreneurs adopt to perform their functions well.
Entrepreneurs execute some of the functions that can be named promotional functions. This is exactly the point where you initiate your idea. The promotional function is the stage where:
- You disclose your idea and create a proper business plan for it.
- Soon after shifting your idea into a proper business plan, you will gather the requirements and feedback from the target market who is interested in your product or service.
Things to be Included in Promotional Functions:
Here I am going to list down the points or tasks that are mainly performed within the promotional functions by an entrepreneur:
- To convert your idea into a proper and well-defined business plan.
- To gather the information regarding your business to check its sustainability.
- To check whether the idea is profitable and cost-effective or not.
- Thorough research of the market, competitors, and target audience.
- Completion of legal formalities to protect your business authenticity.
- Registering your business according to its domain.
- To efficiently initiate and start business operations.
- Last but not least, financial plannings to utilize your resources properly and not waste them at any cost.
The financial function is one of the most important and major functions of an entrepreneur. The business will achieve its goals and objectives only when its financial planning is done in a proper and well-mannered way. The financial function is the stage where:
- Proper resource planning is done.
- Controlling the finances being used on the resources.
- To improve the financial position of the business over time.
- To raise money through different resources.
Things to be Included in financial Functions:
Here I am going to list down the points or tasks that are mainly performed within the financial functions by an entrepreneur:
- Identifies the various resources that are needed to fulfill the business objectives.
- To properly evaluate and assess business resources.
- To properly figure out and measure the cost of the resources that are being used in the business.
- Proper check at the financial position of the business to fulfill the short term as well as long term financial requirements of the business.
- To raise money or funds in different ways which might include:
- Business Grants.
- Crowd Fundings.
- Angel Investors.
- Loans from banks.
Management is one of the first and foremost parts of the business and its importance must be considered by entrepreneurs on a priority basis.
Another important function of an entrepreneur is a Managerial Function which is mainly concerned and associated with the activities related to management. The managerial part is one of the most complex and sensitive parts of your business.
Sometimes entrepreneurs ask for guidance or hire a manager for managing their business while in most cases, an entrepreneur is a founder as well as the manager of his/her business.
The managerial function is the stage where:
- Plan the activities that are to be done in the business.
- Organizing those activities.
- Last but not least, to lead and properly control the resources that are being used up in business activities.
Things to be Included in Managerial Functions:
Here I am going to list down the points or tasks that are mainly performed within the managerial functions by an entrepreneur:
- To prepare a proper financial structure and plan for each section of your business.
- To highlight the vision, policies, and major objectives of the business.
- To assign the tasks to the relevant people.
- To build positive terms and relationships with people who are working in the same domain as yours to keep yourself updated with what your competitors are doing.
- To ensure that work is being done by the goals that were settled.
- To clear the communication gap to avoid major conflicts in the future.
- To assure quality for the potential customers.
Risk Bearing Functions:
Risk is a mandatory part of doing any kind of business. This is an important function of an entrepreneur.
The role of an entrepreneur is not only to handle the business operations and other entrepreneurial activities but to take risks which in turn give them big rewards.
By your services or the product you are offering, you have to take some practical steps for future work which is a big risk.
You never know whether your target market will accept it or not because the future demand of the market is unpredictable and uncertain.
So an entrepreneur must be a risk-taker and should be ready to bear any kind of loss because that one loss opens up several new paths of opportunities and new ideas that they can initiate by putting their efforts into it.
For entrepreneurs who are passionate and dedicated, it is not the risk that they take. It is the challenge that they face to gain success and to accomplish their objectives efficiently.
Things to be Included in Risk Bearing Functions:
Here I am going to list down the points or tasks that are mainly performed within the risk-bearing functions by an entrepreneur:
- You take the risk to compete well in the market and the risk as per the market demand.
- To upgrade your product or service as technology changes is a risk.
- To bring a sudden change in your business policies because you are restricted by the government.
- To change the pricing of your product or service as per your financial position and market competition.
Last but not the least, marketing. Businesses can never progress with weak marketing. This is one of the top functions that every entrepreneur must have to excel themselves and their business idea.
If you can not market your product or service well, you can never grow. If you can’t market it well that means you are not doing it well.
So the role of the entrepreneur is to let people know about what he or she is doing and to be aware of others regarding their business.
Marketing is the best way to promote them and to improve them over some time. With the help of marketing, you can easily find new opportunities to grow your business.
Things to be Included in Marketing Functions:
Here I am going to list down the points or tasks that are mainly performed within the marketing functions by an entrepreneur:
- To select the best suitable platform or medium where they can find potential customers to generate sales more and more.
- To market the product and service in such a way that people feel it necessary for themselves.
- Deep market research to increase the number of sales and conversions.
- Develop marketing strategies to influence the target market and to increase the demand for your product or service that you offer.
- To forecast the new trends in your respective domain.
- To make a higher number of reach to let them know what you are doing.
- Let people know about the benefits instead of features that people can get by using your product or services.
Entrepreneurs can’t stay isolated. They have to perform many necessary functions to grow their business.
All the above-stated functions demands for some tasks to be done. These functions are the basic set of principles that every entrepreneur must accomplish.
Every function that you accomplish perfectly will open a new path of opportunities for you. It’s not the thing that how you fulfill the tasks that these functions require, its the mindset that how you explore these functions to carry out valuable results for your business.
According to Tech Baji:
Your success depends on the hard work that you provide to execute these functions
The functions mentioned in the article show the intense relationship of an entrepreneur towards their business.
I will be sharing more about the entrepreneurial journey and the latest things that are being experienced by people in their journey. So keep up reading and learning more about entrepreneurship with Tech Baji.