What is the Work of an Entrepreneur?
The entrepreneur is the one who has the ability to develop, organise, and run a business enterprise along with the risk entitled to it in order to make profits. The role of an entrepreneur with relation to the enterprise is as follows:
Employment Generator
An entrepreneur provides employment opportunities to the various segments of the society whether in rural or urban areas.
Idea Creator
An entrepreneur is a fresh source of brainstorming ideas through which he develops multiple product lines.
Capital Creator
An entrepreneur adds capital formation in the business and the economy as well and is responsible for the creation and management of an enterprise.
Contributor in Industry
Boons in the creation of an industry which leads to the development of new markets and industries.
Importance of the Entrepreneur
Importance of an entrepreneur is discussed below:
The more the risks are associated with the business, the more profits it will generate. Every country requires that there must be a huge base of entrepreneurs so that the economy can shift from the phase of developing to the developed stage.
For being developed, there is a need for innovation so that the products remain in huge demand through their excellency. So, entrepreneurship is the sole medium of innovation, and hence, the government provides various means to boost entrepreneurship in the economy.
There is massive unemployment across the country; hence, the entrepreneur plays a major role in curbing these practices.
Commercial Functions of The Entrepreneur
First of all, the entrepreneur must have a business plan.
After drafting the business plan, the entrepreneur must procure the funds available from the various sources of finance available.
Then, he must hire the workforce required for production.
After their hiring, he must plan the production process and acquire all the essential materials necessary for the production process.
In the fifth stage, he must market the products produced in the market and sell them to ultimate consumers.
Government Initiative to Foster Entrepreneurship
The various initiative to strengthen entrepreneurship in India in the form of various schemes are listed below:
Make In India
An initiative by the Modi Government as soon as they came into power In September 2014. To transfer India into the global village by identifying 25 key areas. This scheme also includes the increase of various limits of FDI in various sectors of the economy.
Stand Up India
This scheme was introduced to facilitate financing for SC/ST and women entrepreneurs. The loan could be repaid in 7 years along with a moratorium period of a maximum of 18 months.
Startup India
To generate wealth and employment opportunities, this scheme was introduced. It provides various benefits to the person concerned, such as financial, income tax, registration, tender, and much more.
Skill India
This scheme was started in the year 2015 with the view of training Indians in different job segments. It is also known as the National Skills Development Mission of India and was launched by Prime minister Narendra Modi.
Case Study
After completing IIT, Shubham wants to have his own startup, but he has no idea about the management function of an entrepreneur. He approaches his friend to help him with a management function to be performed. So his friends give him an idea in brief about the management functions to be performed.
Ans: The various management functions that Shubham needs to perform are as follows:
He had to plan for the entire organisation.
After drafting the plan, he needs to develop the organisational structure as per the plans drafted.
Then he needs to recruit the staff as per the needs of the organisation.
Then he needs to monitor the organisation and motivate the employees to achieve the organisational goals.
If there is any deviation in the outcomes planned, he needs to evaluate and control them as per the organisation's needs.
Summary
An entrepreneur is an imagination who fulfils not only his dreams but also the dreams of others through the advancement of technologies. He not only serves as an innovator but also promises luxurious life to the individuals in the society concerned. Hence, he must be encouraged to get a revolution in the world.
FAQs on Role of Entrepreneurs in Economic Growth
1. What are the various characteristics of a good entrepreneur leader?
The various characteristics of the entrepreneur are listed below:
He should have a good knowledge of his business.
He must possess a high level of integrity and honesty.
He should be a good communicator to explain his business ideas to the people.
He must be a good motivator to employees to achieve organisational goals.
He must be self-confident as it is a startup, so it may or may not be successful.
He must be comfortable with failure in order to succeed.
2. Explain the need for entrepreneurship in India.
The need for entrepreneurship in India can be summarised as:
It serves as an important element in economic development by promoting exports to generate foreign reserves in the economy.
Establishing industries creates backward and forward linkages and hence fosters the economy's development.
It helps maintain the concentration of economic power in the country and reduces economic disparities among the various sections of the society.
It promotes regional developments by establishing units of industries in rural areas.
3. Explain the bottlenecks in entrepreneurial growth.
The bottlenecks in the entrepreneurial growth are listed below:
They fail to manage time as they do not properly plan the time and the acquisition of the resources.
Despite various sources of finance available, they fail to acquire money from the market and hence may not be able to start a business.
Due to being a newcomer in the existing market, the entrepreneur fails to develop an understanding of the market, thereby leading to failure to continue.
