Pob Sba
The entrepreneur and entrepreneurship
February 4, 2009 at 12:55 am (P.O.B Lessons)
The entrepreneur is a human factor of production whose main functions are to organise the other factors of production and bear risks.
The entrepreneur consciously moves resources from an area of lower productivity and lower yield to an area of higher productivity and higher yields.
The entrepreneur may also be seen as one who creates a new business in the face of risk and uncertainty, for the purpose of achieving profits, by identifying opportunities and assembling the necessary resources to capitalise on them.
Entrepreneurship is the process or the act of organising resources and acceptance of risk and uncertainty for the purpose of capitalising on opportunities with the aim of achieving profit.
Role of the entrepreneur
1. Conceptualising: The entrepreneur must formulate ideas regarding the type of business and the type of product that can be put on the market. He must also think of the size of the production in order to make a profit.
2. Planning: This means that the entrepreneur will consider the future and what is to be done in the future with regard to what has been conceptualised. The entrepreneur will make short-term as well as long-term plans. Overall, policies and organisational structure will have to be worked out. Planning also includes outlining the duties of managers and setting targets to be met, for example, production and sales targets.3. Accessing funds: The entrepreneur is responsible for raising funds or finances before production begins and whenever the business needs additional capital for expansion. This does not mean that the funds must come from the entrepreneur’s own pocket. Apart from savings, the entrepreneur can use other sources of finance, including: * Borrowing from friends and relatives * Attracting foreign investors * Acquiring partners * Financial institutions.
4. Organising: This involves bringing together the other
February 4, 2009 at 12:55 am (P.O.B Lessons)
The entrepreneur is a human factor of production whose main functions are to organise the other factors of production and bear risks.
The entrepreneur consciously moves resources from an area of lower productivity and lower yield to an area of higher productivity and higher yields.
The entrepreneur may also be seen as one who creates a new business in the face of risk and uncertainty, for the purpose of achieving profits, by identifying opportunities and assembling the necessary resources to capitalise on them.
Entrepreneurship is the process or the act of organising resources and acceptance of risk and uncertainty for the purpose of capitalising on opportunities with the aim of achieving profit.
Role of the entrepreneur
1. Conceptualising: The entrepreneur must formulate ideas regarding the type of business and the type of product that can be put on the market. He must also think of the size of the production in order to make a profit.
2. Planning: This means that the entrepreneur will consider the future and what is to be done in the future with regard to what has been conceptualised. The entrepreneur will make short-term as well as long-term plans. Overall, policies and organisational structure will have to be worked out. Planning also includes outlining the duties of managers and setting targets to be met, for example, production and sales targets.3. Accessing funds: The entrepreneur is responsible for raising funds or finances before production begins and whenever the business needs additional capital for expansion. This does not mean that the funds must come from the entrepreneur’s own pocket. Apart from savings, the entrepreneur can use other sources of finance, including: * Borrowing from friends and relatives * Attracting foreign investors * Acquiring partners * Financial institutions.
4. Organising: This involves bringing together the other