According to Schumpeter, the true function of an entrepreneur is to:

1. Schumpeter held that the true function of an entrepreneur is to introduce innovations, the commercial application of new ideas. 2. So the answer is introducing innovations. 3. Foreseeable risks such as fire or theft can be insured against, so bearing them is not the defining function (Knight emphasised uncertainty, not insurable risk). 4. Supplying natural resources describes land and storing labour is impossible since labour is perishable. _Source: ICAI BoS CA Foundation Paper 4 Business Economics, Ch 3 Unit I "Theory of Production", p.8_