Organization

Economics

The man behind organizing the business is called as ‘Organizer’ or ‘Entrepreneur’. An organiser is the most
important factor of production. He represents a special type of labour. Joseph Schumpeter says that an entrepreneur innovates, coordinates other factors of production, plans and runs a business. He not only runs the business,but bears the risk of business. His reward is residual. This residual is either positive (profit) or negative (loss) or zero.

Functions of an Organizer (Entrepreneur):

*Initiation: An organizer is the initiator of the business, by considering the situation and availability of resources and planning the entire process of business or production.
*Innovation: A successful entrepreneur is always an innovator. He introduces new methods in the production process.
*Coordination: An organizer applies a
particular combination of the factors of production to start and run the business or production.
*Control, Direction and Supervision: An organiser controls so that nothing prevents the organisation from achieving its goal. He directs the factors to get better results and supervises for the efficient functioning of all
the factors involved in the process of
production.
*Risk-taking and Uncertainty-bearing:There are risk-taking and uncertainty-bearing obstacles. Risks may be insured but uncertainties cannot be insured. They reduce the profit.

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