based on generation
1. Identify Opportunities and Take Initiative
An entrepreneur identifies business opportunities in society and takes initiative to start a business that fulfills needs or solves problems (fills the gap between demand and supply).
2. Arranging Resources
The entrepreneur arranges and organizes all required resources such as:
Human resources (workers, managers)
Non-human resources (capital, machinery, tools, raw materials)
3. Risk-Taking Function
Entrepreneurs take calculated risks.They:
Guarantee payments to workers, suppliers, and lenders
Bear losses if the business fails
Accept uncertainty about success or failure
4. Decision-Making Function
An entrepreneur makes important decisions such as:
What to produce (product/service)
How much to produce (quantity)
Quality standards
Capital structure
Type of machinery
Organizational structure
Feasibility of the project
5. Innovation and Adaptation
An entrepreneur:
Develops new products and services
Improves processes and strategies
Introduces new technology
Adapts existing technology to suit the environment
Innovation helps create better alternatives and keeps the business competitive.