The entrepreneur is the one that initiates the process of production by mobilizing the other factors of production. He organizes, manages and controls the affairs of the firm. he is the risk bearer and in consideration of this the profit maker as well. Simply put the entrepreneur is the owner of the bussiness
Functions of an Entrepreneur
One of the other important functions of entrepreneurs is to continuously innovate. This innovation can be in the field of new products, new production methods/technology, new business models, exciting and new promotion tactics, exploring new markets, etc. This will help entrepreneurs with the economic growth of the firm.
Initiating the Business
This is the first function of the entrepreneur, to actually start a business. Firstly the entrepreneur spots business opportunities in the economy he can exploit. Then he develops the project ideas and decides on the scale of the business. Finally, he must obtain the different factors of productions to get the ball rolling
.The entrepreneur has to build up his business dynamically. He must coordinate the factors of production and utilize them in the right proportions.
This is perhaps the most important function of entrepreneurs. The entrepreneurs bear the risks of failure in exchange for the profits of the company. So in dynamic economic model things can change very fast. So the business plans of the entrepreneur should be able to adapt to the changes.
4 four characteristics of an entrepreneur as a factor of production
1) The entrepreneur provides all the factors of production – land, labour, capital and enterprise himself and constantly innovates his business to stay competitive within the limited resources he has.
2) The entrepreneur has the ability to take on big companies with the help of a single, powerful idea.
3) The entrepreneur also provides employment to many others in his business and increases economic activity.
4) It is the entrepreneur who ventures into new businesses and ideas rather than any established company because the entrepreneur believes in taking risk to establish himself.
Characteristics of production factors
All the gifts of nature used to produce goods and services belong to the land. Here the land is not just the earth but all the gifts of nature that can be used for the production pro
Forms of capital
Social public working capital
School buildings in the field of education, hospital buildings in the field of health, operating theaters, medical laboratories, and equipment, as well as waste disposal pipelines and drinking water supply systems, are covered under this and social welfare is achieved through this.
pysical capital provides a certain amount of return to the asset holder throughout the period of use
Advanced labor is called human capital. There are several ways in which labor can be improved
- Social capital is the institutional, normative, values, association membership, and network of relationships that develop the quality and quantity of social interaction
The Importance of Social Capital :
Increasing community productivity.Develop social strength and confidence. and many more