What is Entrepreneur? Meaning
The term 'Entrepreneur' has been derived from a French word 'Entreprendre' meaning to undertake certain activities. Normally, entrepreneur has to perform two types of functions which are explained here with the help of pictures given below.
Factors of production viz. land, labour and capital are scattered at different places. All these factors have to be assembled together. This work is done by enterprise through entrepreneur. This is an 'Organization Function'. Organization function is the work of bringing the required factors together and making them work harmoniously.
Entrepreneur has to bear risks and uncertainties. For facing uncertainties he may get profit or may incur loss. This is the 'Risk Bearing Function' and entrepreneur is the risk bearer.
Qualities / Skills of an Entrepreneur
To be a successful and ideal entrepreneur, one should have certain qualities or skills as given below :-
- Ability to organize : He should be able to organize various factors effectively. He has to understand all the aspects of the business.
- Professional approach : He should be objective and professional in approach.
- Risk bearer : He should be risk taker. He should be ready to bear risk and uncertainties.
- Innovative : Organiser should be innovative. He should adopt modern techniques of production. He should not be reluctant to changes.
- Decision Making : One has to take right decision at a right time by showing his promptness. Quick decisions are expected but hasty decisions shouldn't be taken. Delay in decisions may increase cost of project and reduce the profits.
- Negotiation skills : Businessman regularly comes into contact with various persons like consumers, workers, government officials, etc. so he should communicate tactfully.