The 10 main functions of an entrepreneur are listed below;

1. Innovation

2. Planning the Project

3. Organizing

4. Risk-taking and Uncertainty bearing

5. Procuring and mobilizing resources

6. Taking business decisions

7. Perception of Marketing opportunities

8. Financial Management

9. Upgrading process and product quality

10. Developing social atmosphere



These are explained below;

1. Innovation

Innovator is a person who does or creates something new. It can be a new product or service, a new source of raw material, a new marketing strategy or a new process of production.

An entrepreneur continuously thinks of doing something unique and better than his competitors. He searches for opportunities in the environment and wants to be the first to seize the opportunity.

An entrepreneur is basically an innovator who introduces new combinations of means of production.

2. Planning the Project

Planning is the most important aspect of project preparation. Planning helps to optimise the use of scarce resources and to achieve the objective.

Project planning consists of overall goals, project purpose, results and output which entrepreneur must achieve and sustain and the activities necessary to achieve the goals.

 The functions of project planning include project identification, project formulation and project appraisal

3. Organizing

The entrepreneur is required to have the ability for assembling all the factors of production in the right proportion in order to achieve the goals.

He has to coordinate and control the activities of his enterprise. He delegates authority and gets the work done by his employee. He makes the final choice concerning the business and takes he responsibility for the decision made.

4. Risk taking and Uncertainty bearing

This implies taking responsibility for the consequences that may occur due to unforseen circumstances in the future. An entrepreneur invests capital in order to run the enterprise.

He needs to make payments to his employees, Shareholders, Suppliers and lenders. Sometimes he may have little or nothing left for him. 

For an entrepreneur, business is a game of skills where risks and reward both are great. He knows to visualize opportunities and handle uncertainties. He is an enterprising individual willing to assume risks involved in innovation, new ventures and expansion of existing ventures

5. Procuring and mobilizing resources

An entrepreneur has to procure and mobilize resources in the best possible manner for achieving the business objectives.

He should be able to minimize the cost of production without reducing the quality of the product or service. He should be good at forecasting and have knowledge about business.


6. Taking business decisions

An entrepreneur, most of the time takes all major and routine decisions concerning business. Once he finalizes on the enterprise which he wants to undertake, he takes all the managerial and financial decisions.

He formulates an action plan with regards to production process, marketing, and personnel. 

He also takes decisions when suitable changes require to be made. He also takes decisions for the future with regards to expansion, diversification and so on.

7. Perception of Marketing opportunities

Understanding the market for the product is important and detailed study must be undertaken. An entrepreneur makes an analysis of the market, to give a comprehensive idea of the market opportunity as well as of a marketing strategy for converting opportunity into reality.

Perception of market opportunities include, demand forecast and market share. 

Hence an entrepreneur needs to formulate strategy which helps him cope with the uncertainties in the market place more effectively.

8. Financial Management

Finance is one of the most important essential to start an enterprise. An entrepreneur has to decide on his capital structure. He should know the sources of fixed and working capital. He should have a plan to utilize the funds effectively.

His main objective should be maximum returns for the amount of capital he has invested.

9. Upgrading process and product quality

Quality control is an aspect of production management. Maintaining and raising the quality of goods is a matter of great importance to an entrepreneur.

Supervisor quality goods enable an entrepreneur to capture the market and create goodwill. The process of production should also be standardized by using latest technology which fetches maximum returns at low cost.

10 .Developing social atmosphere

An entrepreneur during the course of his activities comes across different types of people whom he has to deal with.

He should create an atmosphere of belongingness at his work place by maintaining cordial relationships with all the people he is in contact with. He should win their trust and confidence.