Why do ethics matter in entrepreneurship?

Ethics is very important in entrepreneurship because it is how an entrepreneur (or group of entrepreneurs) conducts themselves. Ethical decisions display the trustworthiness of a business and thus, determines how confident their customer base will be in their services. Companies that have an organized method for deciding what’s best for their business while keeping good morals high in their consideration are more likely to grow to be more successful in the long run than businesses that have poor ethical consideration.

How does my own personal budget relate to an entrepreneurship budget? How are they different?

Whether or not it is for an entrepreneurship budget, everyone has an organized way they handle their personal funds and income. Whether it be assessing how much is made from a job or budgeting for payments such as groceries, bills, and other payments, financing is an important aspect of everyday life. Personally, after going through the module, I can relate to some of the strategies used such as basic budgeting to ensure I have enough money to fulfill each of my necessary tasks. Of course, personal financing and financing for an entrepreneurship has its differences such as needing to assess profit from sold assets, making a yearly plan to ensure the company has enough resources with the budget they are given, and how to assess when there needs to be changes in the way the company functions to ensure money does not become scarce.

Why do businesses need a budget or financial forecast?

Businesses need a financial forecast so they may estimate trends in an economic venture. This helps them make long-term plans and strategies to prepare for  potential fluctuations or other financial conditions that may come about. This is done by comparing past and present financial conditions to estimate what will happen next.

What is your definition of social entrepreneurship? Give an example of an enterprise you read about from the Schwab Foundation website.

Rather than being an entrepreneurship that focuses on monetary wealth above all else as a result as a business, social entrepreneurship focuses on applying business tactics toward innovating solutions for the overall betterment of society.  While these businesses may also acquire financial value, their main goal is to invoke some sort of major social change. From the Schwab Foundation website, I found a business that was begun by Helmy Abouleish called Sekem. Sekem is an initiative to develop methods for biodynamic farming in Egypt. This is to restore and maintain the vitality of the soil to allow for sustainable agriculture.

Source(s):

https://en.wikipedia.org/wiki/SEKEM

https://www.schwabfound.org/awardees/helmy-abouleish

What are the most significant legal issues entrepreneurs face?

One of the most significant issues entrepreneurs face is potentially choosing the wrong legal form to follow for their business. If they do not take into account all the details of a particular legal form, they may face issues regarding tax benefits and may have to pay more taxes than they need to, thus resulting in the business being low on money. Additionally, entrepreneurs need to take into account the information they are giving out to potential customers in their advertisements. For example, a customer could find that a specific piece of information is misleading and could potentially sue the business as a result.