Entrepreneurial functions denote a type of functions which are originated from the tasks of entrepreneurship. The primary functions of an entrepreneur are innovation, rick-taking and organization building.
The functions which are associated with innovation, risk-taking and organization building are termed as entrepreneurial functions.
Innovation is the basic function of entrepreneur. As an innovator, the entrepreneur has to introduce new combinations of means of production, new market for product and new sources of raw material.
Entrepreneurs introduce something new in any branch of economic activity. As an innovator, entrepreneur foresees the potentially profitable opportunity and tries to exploit it.
Innovation refers to doing new things or doing the things that are already being done in a new way. It includes introduction of new products, creation of new markets, application of new process of production, discovery of new and better sources of raw materials and developing a new and better form of industrial organization.
Risk-taking is also the fundamental function of an entrepreneur. It is the specific function of an entrepreneur. Risk-taking refers to take reasonability for loss that may occur due to unforeseen contingencies of the future.
An entrepreneur reduces uncertainty in his plan of investment, diversification of production and expansion of the enterprise. He is an especially talented and motivated person who undertakes the risk of an enterprise.
An entrepreneur visualizes opportunities for introducing new ideas and handles economic uncertainty. He is a self confident and highly optimistic person willing to assume to risks involved in innovations, ventures and expansion of an existing venture.
3. Organization Building:
Organization and management of the enterprises is the main function of an entrepreneur. It refers to bring together the various factors of production. The purpose is to allocate the productive recourses in order to minimize the losses and reduce costs in production.
All the decision relating to enterprise the lines of business to expand and capital to employ. Thus, entrepreneur is the final judge in the conduct of his business.