Understanding The Roles Of An Entrepreneur

In order to perform their functions effectively and operate a successful business, entrepreneurs have to perform certain roles. These roles are the same as the basic managerial roles which are as follows:



Figure Head Role:
The entrepreneur has to act as figure head in the organization, as such; he/she has to perform ceremonial duties. This is done by representing the organization in formal and informal functions.


Leader Role:
The entrepreneur has to act as a leader because the entrepreneur is the one who brings other people together in order to create the business. Thus, he/she has to lead the people in the organization by hiring, firing, training and motivating them.

Liaison Role:
The entrepreneur has to act as the link between the business and the parties outside the business.

Monitor Role: The entrepreneur acts as a monitor; he monitors both the internal and the external environment of the business constantly


Information Disseminator Role:
The entrepreneur has to act as the organizational representative and transmit information both within and outside the business


Spokesman Role:
The manager has to act as the spokesman of the business; he/she is the person for the business both inside and outside.


Entrepreneurial Role:
This is the basic role of the entrepreneur; he/she launches new ideas for the business and bears the risk.




Disturbance Handler:
The entrepreneur also acts as arbitrator in situations of conflict so as to maintain organizational harmony.


Resource Allocator:
The entrepreneur decides on how the scarce resources of the business are allocated among its competing ends so as to achieve organizational goals and objectives.


Negotiator Role:
The entrepreneur has to negotiate on behalf of the business both with the other categories of labour and other outside sources

The specific entrepreneurial roles are classified as follows:


Social Roles of Entrepreneur:
· Transformation of traditional indigenous industry into a modern enterprise.
· Stimulation of indigenous entrepreneurship.
· Job or employment creation in the community.
· Provision of social welfare service of redistributing wealth and income.


Economic Roles of Entrepreneur:
· Bearing the ultimate risk of uncertainty.
· Mobilizing savings necessary for the enterprise.
· Providing channel for the disposal of economic activities.
· Utilizing local raw materials and human resources.


Technological Roles of Entrepreneur:
· Stimulation of indigenous technology in the production process.
· Adapting traditional technology to modern system.
· Adapting imported technology to local environment.
· Developing technological competence in self and the workforce through innovation