Roles of Entrepreneurs in Business/Wealth Creation

Roles of Entrepreneurs in Business or Wealth Creation

The following are the roles of entrepreneurs in business or wealth creation are;

1. Promoters: Entrepreneurs are promoters because they can scan the environment, identify opportunities, marshal resources and implement the business idea.

2.Partners: Entrepreneurs solicit the participation of other persons in a business project because of the following:

(a) the degree of success or failure factor involved,

(b) the complexity of a business idea may require more than one person to run it,

(c) the influence, experience and capacity of others may be useful, and

(d) friendships or acquaintanceships may be consolidated through joint business association.

3. Shareholders:  Potential entrepreneurs would participate as shareholders under the following circumstances:

(a) when the enterprise requires too much investment,

(b) when they do not want to commit their full time to the enterprise,

(c) when risks may be reduced by spreading their investment portfolio, and

(d) when they do not have the capacity to manage such an enterprise.

4.Directors: Entrepreneurs participate as directors by contributing positive ideas to advance the enterprise's objectives. Such would include:

(a) ensuring compliance with all legal requirements,

(b) safeguarding the interests of employees, especially women, particularly in the context of decent work,

(c) safeguarding the interests of shareholders in the context of return on investment,
(d) ensuring that business is conducted honestly and diligently, and is devoid of fraud and deceit,

(e) ensuring social responsibilities and expectations  are met.

5. Organizers: For an entrepreneur to effectively control or monitor operations and facilitate communication with workers, it is advisable to have an organizational structure for the enterprise. Organizational structures can be formal or informal, for instance:

(a) various members of a family are assigned various positions,
(b) various employed assistants are assigned administrative positions in the running of a small business.

6. Initiating ideas: Entrepreneurs come up with new ideas. This is an important area for an entrepreneur as it determines his/her rate of expansion in business, e.g. newdesigns and use of products.

7. Taking risks: Entrepreneurs take risks in business, e.g. starting businesses    which have an equal chance of success or failure. Resigning from a secure job to start a business is also risk-taking.

8. Planning: Entrepreneurs are aware of the importance of planning and of the limitations of planning in the context of the above roles.

9. Controlling: Entrepreneurs are leaders rather than followers; they make the final decisions and control all aspects of business operations.

10. Coordinating: Entrepreneurs must coordinate all the production factors needed in the business, i.e. capital, labour and land.