The role that the entrepreneur plays consists in co – coordinating and correlating the other factors of production. He starts the work, organised and supervises it. He undertakes to remunerate all the factors of production: to pay rent to the landlord, interest on the borrowed capital. and wages to labor, and pays them in advance of the sale of goods. The residue, if any, is his. Nothing may be left after he has made the necessary payments. In that case, his venture will have been miscarried. But it is also possible that he may be lucky to make a handsome profit. Whatever may be the outcome, he must be prepared to accept it. He thus takes the final responsibility of the business. If he has anticipated the consumers wishes aright and interpreted them correctly. he is amply rewarded. Organizing and risk-taking, or uncertainty bearing, as it is sometimes called. are the two chief functions of the modern entrepreneur.
Finance, marketing, or human relations inside the business and public relations outside, i.e., with suppliers of materials and customers of products. It is involved, finally, when new forms of business organisation are instituted, such as chain stores, the merger of several establishments, or a monopolistic combination among producers. It will be easily understood that uncertainty is inherent in the making of the decisions like those enumerated above and also in any innovations that may be adopted. The all embracing function that the entrepreneur performs is, therefore, that of uncertainty bearing.
Schumpeter’s concept of Entrepreneur
A. Schumpeter, a German economist, has put more emphasis on the role of entrepreneur. According to him, the entrepreneur can economy during the Meiji Era after 1868 the ‘shiatsu’ (Five main Entrepreneurs) played a vital role in its economic development.
(i) Introduction of a new product
(ii) Introduction of a new machine
(iii) Discovery of a new source of supply of immaterial
(iv) Opening up of a new-market. and
(v) Introduction of scientific methods of organisation As a leader an entrepreneur possess the following motives, whose main aim is not only to earn profit.
(i) Desire to establish private commercial kingdom.
(ii) Will (0 conquer and prove superiority overthrows.
(ill) Joy of creation and getting things done.
Schumpeter said, He does not belong to a particular class, “Because being an entrepreneur is not a profession and as a rule not a lasting condition, entrepreneurs do not form a social class in the technical sense like the class of landowners or capitalists or workers. Summing Up. The Entrepreneur’s functions may be summarized thus:
(i) Initiating a business enterprise by mobilizing and harnessing the necessary productive resources.
(ii) Taking the final responsibility of the business enterprise risk taking and uncertainty bearing.
(iii) The Entrepreneur’s role as an innovator. In the words of Professor Harvey Wallenstein, the entrepreneur’s role is to “search and discover economic opportunities, evaluate economic opportunities, the financial resources necessary for the enterprise, make time-binding arrangements, take ultimate responsibility for management, be the ultimate uncertainty and/or risk – bearer, provide and be responsible for the motivational system within the firm, search and discover new economic information, translate new information into new markets, techniques and goods and provide leadership for the owed groups.