SPECIFICS OF THE ECONOMICS OF ENTREPRENEURSHIP
in modern times the entrepreneur is considered as one of the most important factors of production. Entrepreneur is the process of discovering new ways of combining resources. The concept of entrepreneurship was first established in 1700s and the meaning has evolved ever Since. In general times, entrepreneurship is a process of developing, organizing, running, and setting up one's own business and taking up financial risk to make profit. Entrepreneurs are by nature and definition job creations. When you become an entrepreneur, you provide employment for multiple job seekers. This kind of job creation by new and existing business is again is one of the basic goals of economic development.
In organization, an organizer bring all other factors of production, land, labour and capital together and makes production possible. To collect these factors, to co-ordinate them in a proper promotion, to supervise work, to purchase now materials and sell finished goods l etc are the functions of an organizer. Sometimes, he invests capital by borrowing from others to earn profits and thus the isk of profit or loss. According to Frank H. Knight "An entrepreneur is a person who performs the dual function risk-taking & control." Thus an entrepreneur is man who starts production by bringing together other factor, co-ordinate, Supervises and manages them and bears the risk of profit or loss. In these days, an entrepreneur is described as the 'captain of Industry'. Functions of the entrepreneur :
The entrepreneur performs certain specific functions which are explains as below-
1. To prepare plans is the first and foremost function of an entrepreneur i.e, the scale of production, types of goods to be produced and its quantity.
2. The entrepreneur makes the selection of the site for the factory to be installed. The place should be near the market, railway station or bus stand. The selection of the place has an important bearing on the cost of production.
3. Provision of capital is required to install a factory or an industry. Capital is required at all the stages of business. He tries to capital at the lowest possible rate of interest.
4. Provision of land. Land is either purchased or hired.
5. In modern times, different type of labour are required to produce one type of commodity. The entrepreneur has to make provision for labour from different places.
6. It is the function of the entrepreneur to purchase machines and tools or order to start and continue the production.
7. It is the entrepreneur who makes provision for raw materials. He purchase the quality of raw materials at the minimum cost.
8. One of the main function of the cntrepreneur is to co-ordinate different factors of aroduction in proper combinau0n, SO tnat the cost ot production is reduced to the minimum.
9. It is the duty of an entrepreneur to do advertisement explaining the superiority and quality of his goods through newspaper, magazines, radio, TV etc.
10. One of the main jobs of an entrepreneur is to supervise all the factors engaged in the production process.
11. The entrepreneur has to make contact With the government because the modern production system 1s controlled by the government in several ways.
12. Risk-taking is the most important function of an entrepreneur. There are chances that he may be rewarded with a handsome profit or he may suffer a heavy loss. Risk-bearing is the final responsibility of an entrepreneur.
Entrepreneurship and its importance in Economy:
Great entrepreneur have the ability to change the way we live and wotk. If success ful, their innovations may improve standard of living and in addition to creating wealth with entrepreneurial ventures, they also create job and contribute to a growing economy. Entrepreneurship is thus important for a number of reasons, from prompting social change to deriving innovation.
Entrepreneurship spur an economic growth. New products and service created by entrepreneurship can produce a cascading effect, where it stimulates related businesses on section that need to support the new venture, furthering economic development.
From the highly qualified programmer to the construction worker, entrepreneurship benefits a large part of the economy new and improved products, services or technology from entrepreneurs enable new markets to be developed and new wealth to be created.
Additionally, increased employment and higher earnings contribute to better national income in the form of higher tax revenue and higher government spending. Through offeringunique goods and services, entrepreneurs break away from tradition and reduce dependence on obsolete systems and technologies.
In recent times, as the grow of the smartphone market continues, technological entrepreneurship can have a profound, long-lasting impact on the world. In economy, higher carnings from entrepreneurship can help boost national income and tax revenue. It contributes In other ways as well, such as investing in community projects and supporting local charities. Entrepreneurship, thus is an important as it has ability to improve standards of living and create wealth not only for the entrepreneurs but also for related businesses.
