Nixzele Bernardo 9-Duhat Septemeber 06, 2019 Management Function of an Entrepreneur The four management functions of an entrepreneur Entrepreneurs are broadly classified into/our categories as mentioned below Entrepreneur Functions Managerial Functions ADVERTISEMENT Promotional Functions Commercial Functions P.O.S.D.C of management Planning: the process of setting objectives and determining what needs to be done to successfully accomplish the assignment-mission of an organization. Organizing: the process of task assignment, the coordination of resources, team structuring, and work activities for the organization. Staffing: the process of building the team by attempting to attract and retain qualified people to the organization. Directing: the process that provides leadership, arranges motivational opportunities, and builds a good working environment. Controlling: the process of establishing enterprise-wide standards, analyzing results, measuring actual performance and monitoring to see whether standards have been met. Controlling also includes making the right decisions and corrective actions, if needed. Investigating Entrepreneurial Opportunities

3. Planning Leading
Controlling Organizing

4.  Planning – Planning requires the entrepreneur to have objectives that they set. They will determine
in advance how the objectives will be seen to. In the planning stages it is very important that goals
are outlined in a clear and concise manner so that the rest of the team can follow how the goals will
be met.
 Leading – Leading is most important for an entrepreneur because they need to be able to pass
their vision on and motivate their employees to see the same goals. Leading will influence
employees towards achieving the goals created in the planning stage. Without proper leadership
employees may not be able to follow through on the objectives and goals.
 Controlling- Controlling is a mechanism that will help the goals be achieved. It means considering
what mechanisms can be established and then implementing them towards reaching those goals. In
the controlling stage the entrepreneur has to know when they can let the person go on their own to
work on the project and when it is time to reign everyone in.
 Organizing- Organizing is when the entrepreneur delegates certain functions to employees,
providing tasks and allocating resources in order to help reach the objectives that were devised in
the planning stage.

5. Entrepreneur Functions
Managerial Functions
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Promotional Functions
Commercial Functions

6.  Entrepreneur Functions- The major entrepreneurial functions include risk bearing,
organizing, and Innovation. Since these are already discussed under the heading.
Evolution of the Concept of Entrepreneur, the same is, therefore, not discussed
here again for the sake of repetition.
 Managerial Functions- In simple words, management is getting things working with
and through others. Different experts have defined term management differently.
According to Henry Fayol (1949) who is considered the father of “principles of
management,” “management is to forecast, to plan, to organize, to command, to
coordinate, and to control.”

7.  Promotional Functions
 (Identification and selection of Business Idea) Every intending entrepreneur wants to start
the most profitable and rewarding project. The selection of the most suitable business Project
involves a process. The intending entrepreneur, based on his/her knowledge, experience, and
Information gathered from friends and relatives, generates some possible business ideas
which can be Examined and pursued as a business enterprise.
 (Preparation of Business Plan or Project Report) The entrepreneur prepares a statement
called ‘business plan’ or ‘project report’ of what he / she proposes to take up. In other words,
business plan is a well evolved course of action devised by entrepreneur to achieve the
specified objectives within a specified period of time.
 (Requirement for Finance) The entrepreneur prepares requirement for funds with its detailed
structure. The financial requirement is also classified into short-term and long-term
separately. Then, the sources of supply to acquire the required fund are also mentioned. How
much will be the share capital in terms of equity and preference shares and how much will be
borrowed capital from different financial institutions and banks are clearly determined.

8.  Commercial Functions
 (Production/ Manufacturing) Once the enterprise is finally established, It starts producing
goods or offering services, whichever be the case. Production function includes Decisions
relating to the selection of factory site, design and layout, types of products to be produced,
research and development, and design of the product.
 (Marketing) All production is basically meant for marketing. Marketing is the performance of
those business activities that direct the flow of goods and services from producer to consumer
or user. Thus, marketing essentially begins and ends with the customers. It is important to note
that marketing is not just selling. In fact, marketing includes much more than selling. Selling is
the last function in marketing activities.
 (Accounting) The main objective of any business enterprise is to earn profits and create wealth.
Whether the business is fulfilling its objective or not is ascertained through accounting. What is
accounting? According to the American Institute of Certified Public Accountants, “Accounting is
the art of recording, classifying and summarizing in a significant manner and, in terms of
money, transactions and events which are, in part at least, of a financial character and
interpreting the results thereof.”

9.  Planning: the process of setting objectives and determining what needs to be
done to successfully accomplish the assignment-mission of an organization.
 Organizing: the process of task assignment, the coordination of resources,
team structuring, and work activities for the organization.
 Staffing: the process of building the team by attempting to attract and retain
qualified people to the organization.
 Directing: the process that provides leadership, arranges motivational
opportunities, and builds a good working environment.
 Controlling: the process of establishing enterprise-wide standards, analyzing
results, measuring actual performance and monitoring to see whether
standards have been met. Controlling also includes making the right decisions
and corrective actions, if needed.

10. What does it make to be an entrepreneur? Is it hardcoded in to
certain individuals? Or is it jus a matter of changing the way view
opportunities? In this series of audios Emeritus Professor, Collin Gray
Of Enterprise Development at The Open University graduate,
Julian Brouwer, to discuss the practical issues that. When you try to
bring a technological innovation to market.
This material forms part of the course B322 Investigating
entrepreneurial opportunities.

11.  Creativity is defined as the tendency to generate or
recognize ideas, alternatives, or possibilities that may
be useful in solving problems, communicating with
others, and entertaining ourselves and others.
 Creativity is the ability to come up with the new ideas and
to identify new and different ways of looking a problem and
opportunities.
 A process of assembling ideas by recombining elements already
known but wrongly assumed to be unrelated to each other. This
definition has several key elements that are worth considering:
• Process Creativity is also process (implying, among other
things, that it is more like a skill than an attitude, and that
your can get better at it with practice.)
• Ideas Creativity results in ideas that have potential value.
• Recombining The creative process is one things together in
unexpected ways.

12.  Idea germination/recognition - the seeding stage of new idea.
 Preparation/rationalization- conscious search for knowledge.
 Incubation/ fantasizing – subconscious assimilation of information.
 Illumination/realization- recognition of ideas as being feasible.
 Verification/Validation- application or test to prove idea has value.

13. Taking risk is closely linked with entrepreneurship. Leaving
a steady-paying job to start your own business is a risk in
and of itself and often, requires a substantial amount of
money. If your product or service has never been on the
market before, you also put your reputation at risk.

14. My reflection is how to manage the function of an
entrepreneur, I learn how to plan and set the objectives.
Specially to organizing the material, machines, money
etc. need to execute the plan from how to manage it. And
responsibility for a loss like the Risk taking for how to
reduce the risk in business.

15. https://business-finance.blurtit.com/2347209/describe-
the-four-management-functions-of-an-entrepreneur
https://ezinearticles.com/?The-P-O-S-D-C-Of-
Management---A-Student-Aid&id=3885372
https://www.open.edu/openlearn/money-
business/investigating-entrepreneurial-opportunities
https://www.liveplan.com/blog/why-risk-takers-are-
winners-and-why-all-entrepreneurs-should-take-risks/
http://www.yourarticlelibrary.com/entrepreneur/4-main-
functions-of-an-entrepreneur-explained-with-
examples/40646