Role of an Entrepreneur in an Enterprise

Entrepreneurs play different roles in an enterprise. These include:

1. Initiator

The entrepreneur as the prime mover of the business.  He/she is the director of the enterprise and comes up with ideas which he convinces the members of the organization to follow.  He/she is therefore the promoter of the business.

2. Director

The entrepreneur as a person who engages the participation of others. They knows that they cannot run the enterprise single handedly. To effectively manage the enterprise, he requires the knowledge and skills from diverse persons.  The entrepreneur incorporates shareholders incase;

• The enterprise is too large for him/her to purchase.
• They is not able to purchase the enterprise alone.
• They does not want to commit his/her time wholly in the business.

3. Manager

The entrepreneur as the person in charge of coming up with the organizational structure.

The entrepreneur is in charge of developing an effective organizational structure showing the distribution of the employees’ posts and responsibilities.  The organizational structure is important for effective control and monitoring operation in the firm and facilitates communication with workers.

–         The entrepreneur as the person in charge of developing an organizational design. He has the role of establishing an effective organizational design reflecting the daily activities of the organization in relation to time, beliefs and philosophies and how the business relates with the external environment.

4. Financier

The entrepreneur and the director.   They is the controller of all the enterprise activities.   He mobilizes resources needed to start and run a business i.e finances, raw materials, human effort among others.