The Role of the Entrepreneur

The definition of an entrepreneur is a business person who organizes and operates a business or businesses, while taking on more intense than normal financial risks out of mere business speculation at times, in order to do so in hope of making profit. This person must first learn how to prioritize discretely and keep business/ profit first. However, with doing this, a business man and/ or woman must also know how to pick and choose their battles wisely and know when to leave things alone as well as knowing when to pursue them. Knowledge is key, the more you know, the more advantage you have over the people you deal with and have good instincts as well.

The actions of firms earning profits influence the value of resources in many ways but the main way is supply and demand for a product, and know how and when to shift the price ceiling and price floor of a product in order to gain profit in the given market of choice. When losses are present and resources lose value, the demand of the product goes down as well along with profit from the product which could result in an overstock of product that can’t be gotten rid of and increases the loss in money and time especially if the product has a short shelf life thus the unbalancing of price equilibrium. In the terms of the entrepreneur, it would cost a significant loss in revenue.

If a firm making losses goes out of business, this can be both good and/ or bad. It can be good in the sense that thing will close before risking losing everything and being left with nothing to show for it at the end. However it can have a potential of being bad if at the end when the business is closing, there is still money owed or there is a deficit that cannot be made up or balanced back to zero.

References

* http://www.forbes.com/sites/scottshane/2012/05/24/what-makes-entrepreneurs-successful/

* http://www.writersincharge.com/successful-entrepreneur/

* http://www.entrepreneur.com/article/204220