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Entrepreneurship Development
- By ANUPAM BARUA
- Published 31 August 2009
- Report, Assignment, Case Study and Term Paper
- Unrated
9. DEVELOPMENT FUNCTIONS OF AN ENTREPRENEUR
An entrepreneur frequently has to wear many hats. He has to perceive opportunity, plan, organize resources, and oversee production, marketing, and liaison with officials. Most importantly he has to innovate and bear risk. The main functions of an entrepreneur are as follows:
9.1. Innovation:
Through innovation, an entrepreneur converts a material into a resource or combines existing resources into new and more productive configurations.
9.2. Risk and uncertainty bearing:
An entrepreneur performs the function of risk and uncertainty bearing. Every decision pertaining to development of new products, adapting new technologies, opening up new markets involves risk. An entrepreneur develops the art of decision-making under conditions of uncertainty as a matter of survival.
9.3. Organization building:
An entrepreneur has to organize men, material and other resources. With his organizational skills an entrepreneur builds an enterprise from scratch, nurtures it and makes it grow.
10. ENTREPRENEUR & ENTREPRENEURSHIP-BANGLADESH PERSPECTIVE:
In recent decades in the context of Bangladesh the role of an entrepreneur has been considered of very great significance in accelerating the pace of growth and economic development in both the developed and developing countries. An entrepreneur is a person who perceives opportunities, organizes the resources needed to exploit the opportunity and sets up an enterprise. The process of setting up an enterprise is called entrepreneurship. An enterprise is a business venture. It is an undertaking that involves uncertainty and risk as well as innovation. An individual has the right to choose any income generating activity or self-employment or entrepreneurship as a career option. Functionally income generating and self-employment activities are the initial sages of entrepreneurship. The qualities of entrepreneurship and management are present in varying degrees in both managers as well as entrepreneurs. Yet entrepreneurs are different from managers. They create opportunities for innovation, experimentation and production. Once production begins managers take over. They are more concerned with organizing the routine day-to-day jobs. They do not prefer to take risks. Entrepreneurship is a discipline with a knowledge-based theory. A person can learn and acquire the competencies of becoming an entrepreneur and start a venture and make it grow. So the myth that entrepreneurs are born and not made can safely be dispelled. The most important functions of an entrepreneur are innovation, risk and uncertainty bearing and organization building. An entrepreneur usually has to perform all the functions of production, marketing, finance, human relations etc. especially at the time of start-up and establishing an enterprise. Most entrepreneurs usually start a small venture and then make it grow.
11. ENTREPRENEUR vs. MANAGER RELATIONSHIP
The terms entrepreneur and manager are many times used interchangeably yet they are different. The main differences between the two are summed up below: Figure 1.2 Differences between Entrepreneur and Manager
Figure 1.2: Differences between entrepreneur and manager.
An entrepreneur frequently has to wear many hats. He has to perceive opportunity, plan, organize resources, and oversee production, marketing, and liaison with officials. Most importantly he has to innovate and bear risk. The main functions of an entrepreneur are as follows:
9.1. Innovation:
Through innovation, an entrepreneur converts a material into a resource or combines existing resources into new and more productive configurations.
9.2. Risk and uncertainty bearing:
An entrepreneur performs the function of risk and uncertainty bearing. Every decision pertaining to development of new products, adapting new technologies, opening up new markets involves risk. An entrepreneur develops the art of decision-making under conditions of uncertainty as a matter of survival.
9.3. Organization building:
An entrepreneur has to organize men, material and other resources. With his organizational skills an entrepreneur builds an enterprise from scratch, nurtures it and makes it grow.
10. ENTREPRENEUR & ENTREPRENEURSHIP-BANGLADESH PERSPECTIVE:
In recent decades in the context of Bangladesh the role of an entrepreneur has been considered of very great significance in accelerating the pace of growth and economic development in both the developed and developing countries. An entrepreneur is a person who perceives opportunities, organizes the resources needed to exploit the opportunity and sets up an enterprise. The process of setting up an enterprise is called entrepreneurship. An enterprise is a business venture. It is an undertaking that involves uncertainty and risk as well as innovation. An individual has the right to choose any income generating activity or self-employment or entrepreneurship as a career option. Functionally income generating and self-employment activities are the initial sages of entrepreneurship. The qualities of entrepreneurship and management are present in varying degrees in both managers as well as entrepreneurs. Yet entrepreneurs are different from managers. They create opportunities for innovation, experimentation and production. Once production begins managers take over. They are more concerned with organizing the routine day-to-day jobs. They do not prefer to take risks. Entrepreneurship is a discipline with a knowledge-based theory. A person can learn and acquire the competencies of becoming an entrepreneur and start a venture and make it grow. So the myth that entrepreneurs are born and not made can safely be dispelled. The most important functions of an entrepreneur are innovation, risk and uncertainty bearing and organization building. An entrepreneur usually has to perform all the functions of production, marketing, finance, human relations etc. especially at the time of start-up and establishing an enterprise. Most entrepreneurs usually start a small venture and then make it grow.
11. ENTREPRENEUR vs. MANAGER RELATIONSHIP
The terms entrepreneur and manager are many times used interchangeably yet they are different. The main differences between the two are summed up below: Figure 1.2 Differences between Entrepreneur and Manager
|
Entrepreneur |
Manager |
|
An Entrepreneur is involved with the start-up process. |
A manager with running the business over a long period of time. |
|
An Entrepreneur is assumes financial, materials and psychological risks. |
A manager does not have to bear risks |
|
An Entrepreneur is driven by perception of opportunity |
A manager by the resources he currently possesses. |
|
An Entrepreneur initiates change |
A manager follows rules & procedures |
|
An Entrepreneur is his own boss |
A manager is a hired employee. |
|
An Entrepreneur gets uncertain rewards. |
A manager gets fixed rewards and salary. |