Entrepreneurial qualities consist of vision, inspiration, creativity, willingness to take risks and a focus on achievement. An entrepreneur is a visionary person who takes risks by starting a new business, putting together and coordinating various resources to generate uncertain profits.
Entrepreneurs perform several functions in order to carry out their activities. The most important functions of an entrepreneur are:
Planning determines the future, which sets the goal of turning new ideas into reality. Through the planning, entrepreneurs take on the following functions:
For new ventures, goals are set that can relate to growth, profit, leadership and services. Long-term goals are set.
Development of a business plan
A business plan is developed for the new company, which consists of action plans for production, marketing and finance. Contingency plans are developed to deal with risks.
The organization creates a structure for the new company. Through the organization, entrepreneurs perform the following functions:
Grouping of tasks
Tasks required to achieve the goals are defined and grouped into positions. The authority and responsibility of each position is fixed.
Coordination is the key to business success. Mechanisms are thus established to achieve a harmony of efforts.
3. Mobilize resources
Entrepreneurs determine the required resources and mobilize them. Resources can be:
Financial resources can be existing resources of the entrepreneurs or they can be mobilized from friends, relatives, banks or other sources.
Entrepreneurs acquire the necessary human resources to fill the positions foreseen in the organizational structure.
Entrepreneurs deal with new technologies. They set up production facilities and procure machines and devices. They update the technology to keep up with the changes in technology.
4. Relationship management
Entrepreneurs manage a wide variety of relationships, which are as follows:
They relate to the procurement of inputs and the marketing of outputs. These relationships mainly affect suppliers and customers. Exchange relationships are business-oriented.
Entrepreneurs manage the professional relationship within the company. This is important to motivate employees to be more productive. They provide guidance and solve work problems. Such relationships exist with employees, bankers, insurance companies, accountants, lawyers and consultants.
Entrepreneurs maintain relationships with government and regulatory agencies for licenses, facilities, funding, and tax breaks. Dealing with public bureaucracy is an important task for entrepreneurs.
Membership in clubs, professional associations, and relationship with the local community are used to cultivate social relationships.
Control is the measurement and correction of performance to reach the new company's foals based on feedback. Control can be:
Entrepreneurs ensure the proper allocation and use of the financial resources necessary to control costs and minimize waste.
Entrepreneurs achieve the right combination of inputs for production. Quality control is ensured and efficiency is improved.
Entrepreneurs ensure management control in the new company. You make important decisions yourself to solve problems.