He/She makes plans and strategies for the future moves and actions, as well as takes all the decisions for the firm quickly and logically.An entrepreneur is ready to bear the risks and uncertainties associated with the process of production.He/She is the one who plans, organizes, coordinates, controls and allocates the other means of production.Capital is durable in nature, it is long lasting, but depreciates over time.Īn entrepreneur is the most important factor of production, without which the production process cannot be initiated as the rest of the factors are disorganized or dispersed at various locations and it is the entrepreneur who takes charge of arranging and assembling them, to start the process of production.Īn entrepreneur performs the role of an innovator, manager, organizer, leader, risk-taker, and coordinator.The supply of capital can be increased or decreased according to demand.It has an opportunity cost, as it can be put to alternative uses.It is mobile, as it can easily be transferred from one place to another.It is a secondary and artificial factor of production.It is not a gift of nature, as land, instead is a man-made factor of production. In better words, capital is not an original and principal means of production, rather it is a produced one. which are used for further production of wealth. Further, the supply is based on a number of factors like the size of the population, desire to work, attitude towards work, age and sex composition, etc.Ĭapital can be understood as all the human creations, such as tools, plant and machinery, equipment, money, etc.
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