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Roles of an Entrepreneur
Entrepreneurs fulfill the following three dominant roles −
- Economic Change
- Social Change
- Technological Change
These are referred to as behavioral roles. All entrepreneurs have these common characteristics and decide to become an entrepreneur due to the factors or circumstances in their lives which made them think the way they do.
To do their work effectively and operate a successful business, these entrepreneurs should perform certain roles. These roles are the same as the basic managerial roles. All such roles are listed out in detail as follows −
Figure Head Role
The entrepreneur needs to be the Head in the organization and participate in ceremonial duties, such as representing the organization in formal and informal events or even being the public spokesperson whenever there is a press release, etc.
The entrepreneur should also act as a leader because an entrepreneur may need to bring people with dissenting views and approaches to work together as a team. So, he needs to be good with his people management and leadership skills. He has to lead the people by hiring, firing, training and motivating his resources as and when necessary.
The entrepreneur should also be the liaison officer for his organization. He should be the source of link with the outside world and business houses, always trying to find an opportunity of working together with other big organizations.
The entrepreneur acts as a regulatory body too; he monitors both the internal and the external environment of the business constantly.
Information Provider and Receiver Role
The entrepreneur should also act as the organizational representative and transmit information internally and externally the organization.
The manager should also act as the spokesman of the business and transmit information internally and externally the organization. He needs to be the source of knowledge about his company to potential investors and collaborators.
This is the basic role of the entrepreneur; he/she declares new ideas for the organizations, brainstorms it with the employees and friends and then bears the risk of any unsuccessful implementation.
The entrepreneur needs to act as the mediator and bring people with dissenting thoughts to the table and get them motivated to work together. He needs to handle all conflicts and get the team to focus constantly on the goal.
The entrepreneur needs to find out how the available resources can be allocated between different departments of the organization to suit their demands and necessities. This helps them achieve the organizational goals and the objectives.
The entrepreneur must negotiate on behalf of the organization both internally with the staff as well as with the external investors or collaborators. At such opportunities, the entrepreneurs need to be more focused on their role of being a ‘win-win” deal breaker.
Added Roles of an Entrepreneur
Apart from the above-mentioned roles, there are some specific entrepreneurial roles that a person is supposed to fill up in his duties of an entrepreneur. These are divided into three categories, which are as follows −
- Social Roles,
- Economic Roles, and
- Technological Roles.
Let us now discuss each of them in detail.
Social Roles of Entrepreneur
- Creating opportunities for entrepreneurship.
- Creating job or employment opportunities in the society.
- Engaging in social welfare services of redistributing income and wealth.
- Transforming a standard working procedure into a more modern approach.
Economic Roles of Entrepreneur
- Bearing the risk of failing in business.
- Mobilizing the revenue of the organization properly.
- Utilizing human resources in a cost-efficient manner.
- Providing channels of further economic growth in the organization.
Technological Roles of Entrepreneur
- Changing traditional technology to modern system.
- Adapting improved technology to business environment.
- Utilization of available technology in the production process.
- Developing efficiency and competence in the workforce through technology