Functions of Women Entrepreneurs

The functions of women entrepreneurs are similar to those of any entrepreneur but are often influenced by social, economic, and cultural contexts. Women entrepreneurs play a crucial role in economic development, innovation, and job creation.

Functions of Women Entrepreneurs

Entrepreneurial functions

Innovation

J. Schumpeter has made a substantial contribution to the literature of entrepreneurship she says that an entrepreneur is basically an innovator and she introduces something new in the economy. Innovation is the basic function of an entrepreneur. As an innovator, the entrepreneur has introduced new combinations of means of production, new products, new market for product and new sources of raw material.

As an innovator, entrepreneur identifies the potentially profitable opportunity and tries to exploit it. Innovation refers to doing new things. It includes introduction of new products, creation of new markets, application of new process of production, discovery of new and better sources of raw materials and developing a new and better form of industrial organization.

Risk Taking

Risk taking is also the fundamental function of an entrepreneur. Risk taking refers to take responsibility for loss that may occur due to unforeseen contingencies of the future. An entrepreneur reduces uncertainty in his plan of investment, diversification of production and expansion of the enterprise. She is a self confident and highly optimistic person willing to assume the risks involved in innovations, new ventures and expansion of an existing venture.

Organization Building

Organization and management of the enterprise is the main function of an entrepreneur. It refers to bring together the various factors of production. The purpose is to allocate the productive resources in order to minimize the losses and reduce costs in production. All the decision relating to enterprise is taken by entrepreneurs. She alone determines the lines of business to expand and capital to employ. Thus, entrepreneur is the final judge in the conduct of business.

Promotional Functions

Conception of an idea

The first promotional function of entrepreneur is the conception of a new idea. She visualize that there are opportunities for a particular type of business and it can be profitably run. The idea may be to exploit a new area of natural resources or more profitable ventures in an existing line of business. She develops this idea with the help of technical experts in that field. If they are convinced that profitable avenues are available in that line of business then the idea is taken forward for more exhaustive analysis.

Detailed investigation

The entrepreneur will estimate total demand for the product. There may be certain concerns already in that type of business and so she will determine his share of demand. After determining the prospective demand for goods she will think of arranging finances for the venture. The availability of power, labour, raw materials and machinery is also considered.

The cost structure of the product is analyzed to find out profitability from the venture. An expert opinion is sought of the viability of the project. The work of estimation becomes more difficult if the proposed line of business is new. The estimate should be based on proper analysis of different factors. A guess work creates problems later on.

Assembling the requirements

After making sure that the proposition is practical and profitable, the entrepreneur proceeds to assemble the requirements. She persuades some more persons to join hands with him by becoming directors or founder members. If she has invented something new, she should get it registered in his name. She may also acquire some patent rights.

The entrepreneur selects the factory site, decides about plant and machinery and contacts suppliers or raw materials, etc. She does not purchase all these because it involves huge sums of money. Instead of going for outright purchase he uses option methods. The contracts are finalized by paying option money and the ultimate purchase is done only when the company is incorporated. If the company fails to come up, the entrepreneur only loses option money.

Financing the proposition

The entrepreneur decides about the capital structure of the enterprise. The requirement of finances is estimated first. Then the sources from which this money will come are determined. How much share capital will be issued, the type of the shares to be issued, and the nature of loans, whether debentures or borrowing from financial institutions for a longer period all are finalized.

Generally, commercial banks are helpful only in financing working capital requirements. The financial requirements for short period and long period are estimated separately.

Managerial Functions

Planning

Planning is a basic managerial function of entrepreneur. Planning helps in determining the course of action to be followed for achieving various entrepreneurial objectives. It is decision in advance, what to do, when to do, how to do and who will do it a particular task.

Planning is a process which involves thinking before doing. Planning is concerned with the mental state of entrepreneur. She thinks before undertaking a work. Other managerial functions of entrepreneurs such as organizing, staffing, directing, co-ordaining and controlling are also undertaken after planning.

Hart defines planning as, “the determination in advance of a line of action by which certain results are to be achieved”.

According to Rerry, “planning is the selecting and relating of facts and the making and using of assumptions regarding the future in the visualization and formulations of proposed activities believed necessary to achieve desired results”.

Planning is a process of looking ahead. The primary object of planning is to achieve better results. It involves the selection of entrepreneur objectives and developing polices procedures, budgets and strategies.

Planning is a continuous process. A detailed planning is done in the beginning but the actual performance is reviewed and suitable change era made in plans may be of many kinds, such as short range plans, medium range plan, long, standing plan, single use plan, strategic plan, administrative plan and operational plan.

Organizing

Every business enterprise needs the service of a number of persons to look after its different aspects. The entrepreneur sets up the objectives or goals to be achieved by its personnel. The energy of every individual is channelised to achieve the enterprise objectives. The function of organizing is to arrange, guide, coordinate, direct and control the activities of other factors of production viz. man, material, money and machines so as to accomplish the objectives of the enterprise.

In the other words Koontz and O’Donnell, “organizing is that part of managing that involves establishing and intentional structure of roles for people in an enterprise to fill.’’ Organization provides the necessary framework within which people association for the attainment of business objective.

Staffing

The function involves manning the position ceated by organization process. It’s concerned with human resources of an enterprise. In the words of Koontz and O’Donnel, staffing is filling, and keeping filled, position in the organisation structure through defining workforce requirement, appraising, selecting, compensating and training. Every entrepreneur has to perform the staffing function in one form or the other, in order to get things done through others.

Directing

Directing is concerned with carrying out the desired plans. It initiates organized and planned action and ensures effective performance by subordinate towards the accomplishment of group activities. In the words of George R. Terry. ‘Direction is moving to action and supplying simulative power to the group.’ After planning, organizing and staffing, the entrepreneurship has to guide and supervise his subordinates.

Leadership

An entrepreneur has to issue orders and instructions and guide and counsel his subordinates in their work with a view to improve their performance and achieve enterprise objective. Leadership is the process by which by which an entrepreneur imaginatively direct/guides and influences the work of other in choosing and attaining specified goals by mediating between the individual and organization in such a manner that both will get maximum satisfaction.

Communication

Communication constitutes a very important function of entrepreneur. It is said to be the number one problem of entrepreneur today. It is established fact that entrepreneurs spend 70 to 90 percent of their working time in communicating with others. Communication is the means by which the behaviour of the subordinate is modified and change is effected in their actions.

Communication is a two way process at it involves both information and understanding. It may be written, oral, gestrual. Communication is said to be formal when if follows the formal channels provided in the organization structure. It is informal communication when it does not follow the formal channels. Communication flows downward from a superior to subordinates and upwards from subordinates to a superior.

Motivation

The term motivation is derived from the word ‘motive’ which means a need or an emotion that prompts an individual into action. Motivation is the psychological process of creating urge among the subordinates to do certain things or behave in the desired manner. It is a very important function of entrepreneur. The importance of motivation can be realized from the fact that performance of a worker depends upon his ability and the motivation.

Supervision

It is another important managerial function of entrepreneur. After issuing, instructions, the entrepreneur has to see that the given instructions are carried out. This is the main aim of supervision. It refers to the job of overseeing subordinates at work to ensure maximum utilization of resources, to get the required and directed work done and to correct, the subordinates whenever they go wrong.

Co-ordination

It is one of the most important functions of entrepreneur. It is essential to channelise the activities of various individuals in the organization for the achievement of common goals. Every department or section is given a target to be achieved and they should concentrate only a work and should not bother about the work of other organs.

It is left to the entrepreneur to see that the work of different segments is going according to pre-determined targets and corrective measures have to be taken if there is any decision. It creates a team spirit and helps in achieving goals through collective efforts.

Controlling

It can be defined as, “determining what is being accomplished, that is evaluating the performance, if necessary applying corrective measures so that the performance takes place according to plans”. Control is essential for achieving objectives of an enterprise. The planning of various activities does not ensure automatic implementation of policies.

Control is the process which enables entrepreneur to get its policies implemented and take corrective actions if performance is not according to the pre-determined standards. Control is a line function and entrepreneur assesses the performance of their subordinates. The main purpose of control is to see that the activity if achieving the desired results.

Commercial functions

Production

Production function is a key function of an entrepreneur. The activities of production are independent of the size of the undertaking. In a small concern one person may be undertaking this function whereas in large organisation this activity may be undertaken by various individual or separate teams. Production is the creation of goods and services.

In relation to goods, production is the fabrication of a physical object through the use of men, materials and equipment, whereas, with reference to services, production is the discharge of a function which has some utility. This interpretation of production activity is very broad one and it does not coincide with the commonly used practice of associating it with manufacturing process only. Production function consists of manufacturing, ancillary and advisory activities.

Finance

Finance function is the most important of all enterprises. It remains a focus of all business activities. It is not possible to substitute or eliminate this function because the enterprise fails in the absence of finance. The need for money is continuous. It starts with the setting up of an enterprise and remains at all times.

The development and expansion of enterprise rather needs more commitment for funds. The funds will have to be raised from various sources. The sources will be selected in relation to the implications attached with them. The success of finance function will depend upon its planning. The receiving of money is not enough, its utilization is more important.

Marketing

Marketing is primarily concerned with the movement of goods and services from the producer to the ultimate consumer. It creates place, time and possession utilities. Marketing is a concept, a point of view and a way of thinking. It is directed towards the satisfaction of consumer wants. It begins and ends with customers.

Marketing plays a significant role in promoting the well – being of all business enterprise. In fact the success of any organisation depends upon its successful marketing. Marketing is necessary not only to a producer of goods and services, but also for a customer, to a government and society at large.

Personnel

This function is concerned with people at work and with their relationship with in an organisation. It aims to bring together and develop into an effective organisation of men and women who make up enterprise.

This function is concerned with employment, development and compensation of the personnel and the provision of working conditions and welfare measures to maintain a good working force in the organisation. The enterprise should endeavour to make proper utilization of human resources.

Accounting

Accounting is defined as a systematic, recording of entrepreneurial transactions in order to get a true and fair view of the results of the operations of the enterprise and the financial position of an enterprise.

Supervision

After issuing instruction, the women entrepreneurs has to see that the given instruction are carried out. This is the aim of supervision. Supervision refers to the job overseeing subordinates at work to ensure maximum use of resource, to get the required and directed work done and to correct the subordinates whenever they go wrong.