What Is the Function of Entrepreneurs?
Entrepreneurs play a vital role in driving innovation and value in the marketplace. The entrepreneur is responsible for testing markets, inventing new markets and uncovering demands within individual markets. The entrepreneur dynamic is fueled by creativity, competition and the motivation to succeed within a society.
Entrepreneurs are largely responsible for innovation within existing markets and the invention of entirely new markets. The economy without entrepreneurial drive is static and dependent on dated business models. Great examples of entrepreneur innovations are evident in everyday life. Renewable energy is being driven by entrepreneurs capitalizing on cultural desire to reduce carbon emissions through more sustainable energy models. Solar chargers and battery packs for everything from personal electronics to entire households are developing to serve this demand. The technology is constantly improving as entrepreneurs compete to deliver quality products to the marketplace.
Competition among entrepreneurs factors into the innovation category. Entrepreneurs are constantly improving products and services to increase value. The quality of products and services available is driven by the competitive nature of entrepreneurs pushing to capture market share.
The entrepreneur is motivated by a risk-reward model. The risk involved in testing markets and starting a business is great, but the potential for reward is equally great. Successful entrepreneurs stand to earn large quantities of money; failing is always a possibility. In some instances, an entrepreneur will use personal funds to launch a business. The risk involved in this scenario is huge, but the payoff is also controlled by the individual. Often, investors are involved to generate capital to quickly drive and elevate a business. The entrepreneur mitigates personal risk with outside capital, by sacrificing some of the reward. When an entrepreneur is successful, jobs are created and other businesses and markets are often forced to evolve and adapt to changes in market conditions.