Entrepreneurial Functions

Important Note :The latest notes is available at class 11 Entrepreneurship

1. Why is the relation between entrepreneur and entrepreneurship described as that of a soul and a body?
In order to be an entrepreneur, the individual performs various functions. Among the various functions performed, the following functions, also known as entrepreneurial functions, are specifically considered as the characteristics of an entrepreneur.

  1. Sensing an entrepreneurial opportunity.
  2. Converting ideas into Reality.
  3. Developing the business plan.
  4. Resourcing
  5. Establishing an enterprise.
  6. Managing the enterprise
  7. Growth and development.

All these functions are known as entrepreneurial functions. The success and the quality of the output of the performance of the entrepreneur depends on how well he performs these functions. Therefore these functions performed describe the intensity fo the relationship fo the entrepreneur with the enterprise. For this reason, we can say that the relationship between the entrepreneur and entrepreneurship can be described as that between the body and the soul.

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2. How does sensing an opportunity critical for a successful entrepreneur?
The various activities performed in the society are aimed at meeting the needs like economic, psychological, a few social, a few political and some others cultural or spiritual. They are met by foot, clothes, habitat, changing life styles, transport, entertainment and other modes. However all these requirements change continuously depending on the local conditions and impact of science and technology, time and place.

These changes demand fresh adjustments, modifications, inuputs, patterns and innovations. An entrepreneur should be able to supply and supply these adjustments modifications, input, innovations. The sensing of the opportunity is critical for the entrepreneur because of the following reasons.

  1. To foresee the chanes.
  2. Understand the significance and magnitude of these changes.
  3. Anticipate the quality and time of arrival of these changes.
  4. Understand the needs of the users of these changes.

Any lack in any of the above competencies can adversely affect the success of the enterprise. Thus sensing the opportunity, as it is quintessential for the success of the enterprise, is critical for a successful enterprise.

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3. How does sensing an opportunity help an entrepreneur in making right decisions?

Sensing an opportunity help an entrepreneur in making right decisions in the following ways.

  1. He’ll be able to sense and get enough time evaluate the enterprise opportunity.
  2. He’ll have significant amount of time to assess the strength of the opportunity and then make a decision regarding whether to go or not.
  3. He’ll be able to distinguish between the realy and the perceived value fo the opportunity and take necessary measures.
  4. Ability to see the risks and their returns and take measures to eliminate or reduce the impact.
  5. Guage himself regarding his ability to fit in the personal skills and goal in the contecxt of the opportunity.
  6. He’ll be able to estimate the differential advantage of the enterprise in a competitive environment and decide whether to go ahead or not.
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4. What attributes are required on the part of an entrepreneur to sense the opportunities?

In order to sense the opportunities, the following attributes are required on the part of the entrepreneur.

  1. Imagination.
  2. Intuition.
  3. Innovativeness.
  4. Creativity.
  5. Communicability.
  6. Market sensivity.
  7. Responsiveness.
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5. Why should an entrepreneur sense the opportunities faster than any one else

An entrepreneur should sense the opportunities faster than any one else because of the following reasons.

  1. To sense and evaluate the enterprise opportunity and take a go or no go decision.
  2. To get enough time to assess the strength of the opporunity and decide whether to go ahead or leave it for others.
  3. To have enough time to distinguish between the real and the perceived value fo the opportunity and make a right decision.
  4. Get an understanding of the risks and their returns and have take measures to eliminate or reduce the impact.
  5. To have enough time to evaluate fit in the personal skills and goal in the context of opportunity.
  6. In order have enough time to estimate the differential advantage of the enterprise in the competitive environment.
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6. An entrepreneur is not merely a dreamer – Why? What else are his attributes?

Like many others an entrepreneur is not just a dreamer. An entrepreneur is not only bestowed with the quality of anticipating the changes, but he pusues his dreams to make them reality, by being innovative. He is an innovator of ideas, products, practices, services to meet the perceived opportunity, thus making his dreams come true.

Few additional things that an entrepreneur has to do, apart from dreaming, are as follows:

  1. Perceiving the opportunity
  2. Collecting relevant information related to the opportunity
  3. Studying the needs of the market and the consumer
  4. Gathering relevant information and expertise related to the tools and techniques required to design the idea, product or service.
  5. Acquiring necessary skills to handle the idea, product or service.
  6. Studying the socio-economic environment where the idea, product or service is marketed.

It is important that an entrepreneur should carry out an opportunity analysis for converting the ideas or dreams into a reality. For this, the entrepreneur could carry out an opportunity assessement plan. The assessment plan is focussed analysis to estimate the need of the opportunity and is different from business plan.

From all the above analysis, we can say that an entrepreneur is not merely a dreamer.

Apart from possessing the attribute of being an innovator, he should possess the following additional attributes too.

  1. Imagination
  2. Intuition
  3. Creativity
  4. Communicability
  5. Market sensitivity
  6. Responsiveness
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7. Ability to gather information is vital for establishing an enterprise – Do you agree with the statement? Give reasons for your answer?

Yes, I agree with the statement that the ability to gather information is vital for establishing an enterprise.

The following are the supporting facts.

To establish the enterprise, an enterprise must gather

  1. The required knowledge
  2. Information related to the technology
  3. Information related to the availability of the resources.
  4. Information related to the mobilization of the resources.
  5. Information related to the planning, coordination and organization.
  6. Information related to procuring the moneary investment.
  7. Information on how to seek legal opinions, government permission, and clearance from various agencies.
  8. Information on how to formalize the several ideas and how to put them into action.

Gathering all this information requires keen acument, sharp intellect, patience and interpersonal skills. Thus we can say that this ability of the entrepreneur to gather information is vital for establishing an enterprise.

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8. Why is the entrepreneur required to draw a business plan for his enterprise?

The sucess of an enterprise depends on proper visualization, designing and marketing. To achieve these, an entrepreneur has to draw a business plan for his enterprise. The business plan incorporates the sensivities of time, place and the needs. The business plan has to be comprehensive and concise to provide a route map for the follow up of the project.

Usually the various activities performed for establishing an enterprise are as follows.

  1. Adminograph
  2. Broad understanding of the quantity and quality of the proposed products and services
  3. Costing
  4. Detailed Market studies
  5. Evaluating the list of proposed products and/or services
  6. Feasibility report
  7. Growth profile of the scheme
  8. Having the details regarding Sources of inputs
  9. Information related to scheme of manufacture or provision of the services
  10. Anticipated problems and their management

The success of an enterprize depends on the planned execution of all these activities. Having a business plan will help in successful and planned execution of all these activities, thus contributing to the success of the enterprise.

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9. What are the salient features of a business plan that should be drafted by an entrepreneur?

The salient features of a business plan that should be drafted by an entrepreneur are as follows.

  1. Adminograph
  2. Broad understanding of the quantity and quality of the proposed products and services
  3. Costing
  4. Detailed Market studies
  5. Evaluating the list of proposed products and/or services
  6. Feasibility report
  7. Growth profile of the scheme
  8. Having the details regarding Sources of inputs
  9. Information related to scheme of manufacture or provision of the services
  10. Anticipated problems and their management

The business plan incorporates the sesitivity of time, place and needs. It acts as a roadmap for the follow up of the project.

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10. Why is the business plan of an entrepreneur called a road map for the success?.

Usually the various activities performed for establishing an enterprise are as follows.

  1. Adminograph
  2. Broad understanding of the quantity and quality of the proposed products and services
  3. Costing
  4. Detailed Market studies
  5. Evaluating the list of proposed products and/or services
  6. Feasibility report
  7. Growth profile of the scheme
  8. Having the details regarding Sources of inputs
  9. Information related to scheme of manufacture or provision of the services
  10. Anticipated problems and their management

The success of an enterprize depends on the planned execution of all these activities, keeping in mind the sesitivity of time, place and needs. Having a business plan will help in successful and planned execution of all these activities, thus contributing to the success of the enterprise. So, we can call call the business plan of an entrepreneur a road map for the success of the enterprise.

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11. What does resourcing mean?

Resourcing refers to the identification and assessment of various resources that are input into the system which have a bearing on the quality, quantity, cost and continuity of the product or the service being offered. Resourcing is an important and vital aspect of entrepreneurial functions.

The types of resources to be taken care of will include the following:

  1. Materials
  2. Money
  3. Machines
  4. Market availability
  5. Technology
  6. Human Resouces

It is not limited to the above list, but more can be brought into the purview of the resources depending upon the locality, the type of product or service being offered.

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12. What are the different types of resourcing to an enterprise?

the different types of resourcing to an enterprise are as follows:

  1. Materials
  2. Money
  3. Machines
  4. Market availability
  5. Technology
  6. Human Resouces

Resourcing is not just limited to the above list, but more can be brought into the purview of the resources depending upon the locality, the type of product or service being offered.

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13. What precautions should be taken in establishing and enterprise?

As the establishment of the enterprise is the prime or the cucial activity fo the entrepreneur, he must take the following precautions during this process.

  1. Ensure that knowledge, technology and the resources are readily available at his disposal.
  2. Means for the mobilization of the resources.
  3. Proper planning, coordination and organization.
  4. Ensure that the requirement amount of money and the necessary knowledge are available at his disposal.
  5. Seek legal opinions
  6. Get government permissions
  7. Clearance from various agencies
  8. Formalization of several ideas and put them into action.
  9. Exhibit keen acumen, sharp intellect, patience, and interpersonal skills in the task of establishing an enterprise.
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14. What are the essential qualities required for an entrepreneur to establish an enterprise?

To establish and enterprize, the entrepreneur should posses the following qualities

  1. He should exhibit keen acument, sharp intellect, patience and interpersonal skills.
  2. He should have/develop good public relations to seek legal opinions, government permission and clearance from various agencies.
  3. He should be exhibit execution of formalization of sevaral ideas and put them into action.
  4. Skills in planning coordination and organization.
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15. What are the important features in managing the enterprise?

The most important feature in manging the enterprise is the personal involvement of the enterpreneur, in order to have a very good understanding of how various resources are being managed.
Other features in managing the enterprise are as follows:

  1. Organisation of goods and services
  2. Ensuring production
  3. Ensuring quality
  4. Ensuring supply
  5. Marketing the product or services
  6. Ensuring returns on investment
  7. Exercising contol on the supply line for continuity
  8. Managing the finances
  9. Watching the competition
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16. What is the catchword for growth and development for an entrepreneur?

The catchword for the growth and development for an entrepreneur is Pursuit of Excellence.

The consistent pursuit excellence will not let him remain at his starting point or remain static. He’ll always be striving for growth and development. The following activities of an entrepreneur’s head and heart will help him to achieve this.

  1. He’ll be looking for growth potential of his products and services.
  2. He has to pursue higher goals and improved quality
  3. He has to expand his market
  4. He has to watch for the competitors so that his products and services have a fair advantage in the market because of their quality and need gratification.
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