(i) Production or Manufacturing: Under production function, entrepreneur has to take decision relating to selection of factory site, design and layout, type of products to be manufactured, research and development, product design, etc. The efficient and effective performance of production function depends on the proper production planning and control to a major extent.
(ii) Marketing: Entrepreneur has to carry out following functions pertaining to marketing aspect namely consumer research, product planning and development, standardisation, packaging, pricing, warehousing, distribution, promotion etc. The term marketing mix denotes the combination of four components namely product, price, promotion and physical distribution in the case of physical products and three more components are included in the case of service products namely people, process and physical evidence.
(iii) Accounting: Entrepreneur has to arrange to prepare trading and profit and loss account in order to know the profit or loss incurred out of operation of the business and prepare balance sheet to know the financial status of business at a particular day. Besides, cash flow and fund flow statements are prepared to ensure the adequacy of funds and cash for meeting various working capital needs of the business.
(iv) Finance: In the sphere of financial function, an entrepreneur has to take decisions like choosing the right type of financing, framing the best dividend policy, acquiring of funds, efficiently managing fixed and current assets, maximising shareholders wealth and investing of funds efficiently and effectively.
(v) Human Resource Management: Entrepreneur has to estimate the manpower needs of the enterprise and accordingly decide the size of manpower required for various slots of organisational structure. After determining the required manpower, the entrepreneur has to organise for recruitment procedure
selecting manpower, induction and training, determining compensation structure and incentives, designing motivation programmes, structuring wellbeing measures for employees, putting in place safety mechanism at workplace, performance evaluation and career advancement and structuring social security programmes.
