Impresario VS Entrepreneur 

            Entrepreneurship takes up greater importance in the production process since it's the entrepreneur who decides what to be produced and he is the one who makes decisions to bring the other factors of production together to produce goods and services. Without the entrepreneur, land, labor, and capital are just masses of resources that contain no economic importance. It is the entrepreneur who organizes them for production and decides what to produce, how to produce, and where to produce.

            The entrepreneur also bears numerous risks in a business. There are many uncertainties involved in the running of a business enterprise, for example, there is the possibility of miscalculating the demand for the product, an unexpected shortage of vital factors of production, unexpected competition from another product, risks involved in a decision to vary the proportions of the factors as to how much should be produced and what methods. The main aim of a firm is to earn profit and it is the responsibility of the entrepreneur to gain that objective. Profit/loss is the reward for uncertainty bearing and whoever accepts this ultimate risk is the reticent entrepreneur. The entrepreneur can be an individual, two people, a large limited company, or the government. Whatever the size of the firm, management control is of utmost importance i.e. delegating responsibility to the right person.

            Whereas, organization means to combine other three factors of production i.e. land, labor, and capital. The person who organizes the business is known as an organizer or entrepreneur.

 

The main functions of an entrepreneur are as follows

1. To start the business

2. To employ land, labor, and capital

3. To look after the production

4. To sell the product in the market

5. To pay the reward of land, labor, and capital

6. To take the responsibility of profit and loss

            The reward for the services of an organizer or entrepreneur is known as profit.

Sometimes, the entrepreneurs are distinguished from the organizers. Actually, the entrepreneur is the person who is responsible for the profit and loss. It means he/she is the risk bearer. The organizer is the person who supervises the whole process of production. He acquires the service of land, labor, and capital and then pays their reward. In a small-scale business, the entrepreneur and the organizer are the same people who are also the owner of the business e.g. the owner of a retail shop. In the case of large-scale businesses, the entrepreneurs employ some managers who organize their business. These managers are responsible for the management only. It's not necessary to be an entrepreneur to be an impresario but it's necessary to be an impresario to be an entrepreneur. 

 

By: Riaz Quraish

The writer is a teacher at BELC and is a student of the Economics Department at the University of Turbat

Turbat Kech Balochistan