Functions of an Entrepreneur

• Innovation: An entrepreneur is basically an innovator who tries to develop new technology, products, and markets. Innovation may involve doing new things or doing existing things differently. An entrepreneur uses his/her creative faculties to do new things and exploits opportunities in the market. He/She does not believe in the status quo and is always in search of change.
• Assumption of Risk: An entrepreneur by definition is a risk-taker and not a risk shirker. He/She is always prepared for assuming losses that may arise on account of new ideas and projects undertaken by him/her. This willingness to take risks allows an entrepreneur to take initiative in doing new things and marching ahead in his/her efforts.
• Research: An entrepreneur is a practical dreamer and does a lot of groundwork before taking a leap in his/her 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 he/she applies his/her ideas in practice.
• Development of management skills: The work of an entrepreneur involves the use of managerial skills which he/she develops while planning, organizing, staffing, directing, controlling, and coordinating the activities of the business. His/Her managerial skills get further strengthened when he/she engages himself/herself in establishing equilibrium between his/her organization and its environment. However, when the size of the business grows considerably, an entrepreneur can employ professional managers for the effective management of business operations
• Overcoming resistance to change: New innovations are generally opposed by people because they make them change their existing behavior patterns. An entrepreneur always first tries new ideas at his/her 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/her ideas by others. This is a reflection of his/her willpower, enthusiasm, and energy which helps him/her in overcoming society's resistance to change.
• 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