Describe the role of an entrepreneur in business promotion. How does an entrepreneur differ from a promoter?
The role of an entrepreneur is of an initiator and a promoter. He must possess expert knowledge of product, market conditions and practical aspects in order to run and promote a business. He is got a crucial role to play in order to make the business successful. He should be an imaginative thinker and should have proper knowledge of the ideal form of business.
Once the entrepreneur launches a business and it proves to be a profit oriented business, he may decide to leave it, give up the ownership rights and give it in the hands of others to run it. Many entrepreneurs have been found doing so due to the coming of new opportunities and more profit oriented lines of business. His main duty is to take care of the business in the initial stages.
An entrepreneur has got, many responsibilities like the ability to seize an opportunity, .to innovate, explore the aspects of profitable business, to complete legal formalities, raise funds and last but not the least manage the business. He may face many problems while promoting the business. Sometimes, long-run implicated decisions have to be taken. He is required to undertake various things. Above all, innovation and risk bearing are the two elements of entrepreneurship.
He is the one who collects the total demand and degree of competition for the proposed product. He collects the preferences of the consumers regarding design, colour, size and shape. After going through the research, he finally finds out the saleability of the proposed product. He even has to take proper decisions regarding the promotional techniques. He can launch a business after fulfilling various formalities.
Difference between Entrepreneur and Promoter
Entrepreneur is the person who takes the risk of starting and managing business. Whereas promoter is the person who undertakes to form a company with reference to a given project and to get it going, takes the necessary steps to accomplish that purpose. The work of the entrepreneur is to bear the risk and make innovation in business. On the other hand, promoters work in order to set up the business and make it operational. But this is not very true in actual practice.
Entrepreneurs may or may not be specialists in the field of business. Promoters are basically specialists who work to set up a new business., expand an existing business or combine two or more business firms. An entrepreneur can be a promoter but a promoter may or may not be an entrepreneur.