Notesale: Turn your study into money

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A manager gets salary as reward for the services
rendered by him in enterprise
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A manager, however, does only what he is asked to
do
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Entrepreneur
The main motive of an entrepreneur is to start a venture
by setting up an enterprise
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An entrepreneur is an owner of an enterprise
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The reward an entrepreneur gets for bearing risks
involved in the enterprise is profit which is highly
uncertain
...
Hence, he acts as an
innovator also called a ‘change-agent’
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Motive
2
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Risk-bearing
4
...
Innovation

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FUNCTIONS OF AN ENTREPRENEUR :
TYPES OF ENTREPRENEUR
1) Idea Generation: Idea-generation is the process of building new ideas, bringing out the idea into an
innovative
way, developing the process and converting the idea into reality
...
Ideas can be generated by following the entrepreneur’s vision, perception,
experience,
observation, education, exposure and training
...
The major function of the entrepreneur is to select the best out of the many
alternative
ideas such that it is most appropriate idea to be applied for the organisation
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The business objectives should be laid-down clearly
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The nature and type of business identifies the industry it belongs to i
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, manufacturing, trading or
service
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3) Fund Raising: Finance is the life-blood of any business
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There are two sources to raise funds, that is, internal and external
sources
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Governmental assistance
can be provided in form of seed capital, fixed capital and working capital
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There are also
various
financial assistances provided by banks and financial institutions
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Entrepreneur must recognise and allocate economical and constant supply of raw
materials
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5) Procurement of Machinery: Another function of entrepreneurs is to obtain the machinery and
equipment
required for the production of goods and services
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Qualification An entrepreneur needs to possess qualities and
qualifications like high achievement motive, originality in
thinking, risk-bearing ability and so on
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Functions of an Entreporencur
Idea Generation
Fund Raising
Procurement of Machinery
Determination of Ownership
Determination of Objectives
Procurement of Raw Materials
Market Research
Recruitment of Manpower
Project Implementation

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i) Technology description,
ii) Installed capacity of the machines,
iii) Description of manufacturers and suppliers,
iv) Origin of machines, whether indigenously made or foreign made,
v) After-sales service facilities, and
vi) Warranty period
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Intensive research is to be made to ascertain the demand of the product
which
the entrepreneur intends to manufacture, the estimated rate of consumption and also the existing
suppliers if any
...
The
information about a product must include demand and supply of a product, price, size of the target
market, etc
...
e
...
It is the role of an entrepreneur to find out the suitable
form of
business depending upon the product (characteristics, types, quality), size of capital investment, types of
operations,
human resources quality, etc
...

8) Recruitment of Manpower: An entrepreneur is also responsible for the manpower planning of the
organisation
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ii) Outlining of selection process
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iv) Defining the rules of training and development
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It is
a time
bound process
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TYPES OF ENTREPRENEUR
According to the economic development of the country entrepreneurs are classified
...
They
are
classified as:
1
...
It is important to note
that such
entrepreneurs can work only when a certain level of development is already achieved, and people look
forward to
change and improvement
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Imitative Entrepreneurs : These are characterized by readiness to adopt successful innovations
inaugurated
by innovating entrepreneurs
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Such types of entrepreneurs are particularly suitable
for the

under-developed regions for bringing a mushroom drive of imitation of new combinations of factors of
production
already available in developed regions
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Fabian Entrepreneurs : Fabian entrepreneurs are characterized by very great caution and skepticism
in
experimenting any change in their enterprises
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4
...
Such
entrepreneurs may even
suffer from losses but they are not ready to make changes in their existing production method

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5
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In the beginning, most of the entrepreneurs start their enterprises like them
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Active partners : Active partners are those entrepreneurs who start/carry on an enterprise as a joint
venture
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Entrepreneurs who
only
contribute funds to the enterprise but do not actively participate in business activity are called sleeping
partners
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Inventors : Such entrepreneurs with their competence

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