Spending years and years with entrepreneurs I have learned that the functions of a true entrepreneur are wide and varied. Entrepreneurs continue to wear many hats and carry out many roles. This is more and more prevalent at the start of a businesses journey. The key for the entrepreneur is to balance their efforts at the start and gradually learn to let go of functions as the business grows.
Besides many of the day to day functions that an entrepreneur has to do – raise money, develop a product, market the product to name but a few – below are a few more that are often forgotten in the world of an entrepreneur.
An entrepreneur is basically an innovator who tries to develop new technology, products, markets, etc. Innovation may involve doing new things or doing existing things differently. An entrepreneur uses their creative faculties to do new things and exploit opportunities in the market. They do not believe in status quo and is always in search of change.
2. Assumption of Risk:
An entrepreneur, by definition, is risk taker and not risk shirker. They are always prepared for assuming losses that may arise on account of new ideas and projects undertaken. This willingness to take risks allows an entrepreneur to take initiatives in doing new things and marching ahead in their efforts.
An entrepreneur is a practical dreamer and does a lot of ground-work before taking a leap into ventures. In other words, an entrepreneur finalizes an idea only after considering a variety of options, analyzing their strengths and weaknesses by applying analytical techniques, testing their applicability, supplementing them with empirical findings, and then choosing the best alternative. It is then that they apply their ideas in practice. The selection of an idea, thus, involves the application of research methodology by an entrepreneur.
4. Development of Management and Leadership Skills:
The work of an entrepreneur involves the use of managerial and leadership skills which they develop while planning, organizing, staffing, directing, controlling and coordinating the activities of business. Their managerial skills get further strengthened when they engage in establishing equilibrium between their organization and its environment.
However, when the size of business grows considerably, an entrepreneur can employ professional managers for the effective management of business operations.
5. Overcoming Resistance to Change:
New innovations are generally opposed by people because it makes them change their existing behavior patterns. An entrepreneur always first tries new ideas at their level.
It is only after the successful implementation of these ideas that an entrepreneur makes these ideas available to others for their benefit. In this manner, an entrepreneur paves the way for the acceptance of his ideas by others. This is a reflection of his will power, enthusiasm and energy which helps him in overcoming the society’s resistance to change.
6. Catalyst of Economic Development:
An entrepreneur plays an important role in accelerating the pace of economic development of a country by discovering new uses of available resources and maximizing their utilization