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Which statement best shows the broad role of an entrepreneur?

Answer and explanation

Correct answer: Identifies opportunity arranges resources takes risk and runs enterprise

The direct answer is A: the entrepreneur identifies an opportunity, arranges resources, takes calculated risk and runs the enterprise. Entrepreneurship is a complete process, not merely having an idea. First, the person notices a need or opportunity; second, plans a product or service; third, gathers money, people, materials and knowledge; fourth, makes decisions and accepts reasonable risk; finally, operates the venture and learns from results. Option A is correct because it includes the main connected responsibilities of an entrepreneur. Option B, only remaining a spectator, is wrong because an entrepreneur acts and takes responsibility. Option C, delaying every decision, is wrong because timely decisions are necessary in changing markets. Option D, staying away from the market, is wrong because understanding customers and competition is essential. A useful cue is: opportunity plus resources plus risk plus action equals entrepreneurship.

Related tags

Home-ScienceEntrepreneurshipEntrepreneur-Role

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