Ethics are a code of procedures that people and organizations follow to maintain positive relations with both customers and peers alike. It is important to set an ethical standard when it comes to an enterprise because in business, public view of morality sets interest people will have when deciding whether to purchase the product or services your company will provide. There are several companies that have had their products drop in value because of the unethical practices of said company. An example of this happening would be Activision Blizzard, a gaming company, losing many followers and gamers on their platform because of the unethical workplace environment they were creating for women, and the sexual assault allegations made against the upper management of the company.
For my budget, I have many expenses that could relate to how a business owner would run a company. To accurately show a cash flow in the green, you must first start with the fixed expenses that need to be paid, and then follow that with the variable expenses. For the home, this includes, games, subscriptions, books, etc., and with a business it is licenses, subscriptions, and investments. The primary expenses that can be changed are the variable expenses, due to fixed expenses usually being something that needs to be paid such as rent of building, payments made to beneficial items such as vehicles, insurance, and taxes. The biggest difference in enterprise budgets in comparison to personal budgets are, the taxes for each instance. A company has more taxes to have to pay for employees and sales/service to stay afloat.
We need budgets to give a roadmap and history of cashflow within an enterprise or personal household. Creating a budget allows to have full transparency and easy control over the profit versus the expenses of the enterprise/household. By determining the amount of profit coming from a product or service, it can open doors for expansion of the business, and allow more freedom to invest into aiding the publicity of product/service. Budgeting is such an important asset to companies, there are jobs listed for these companies solely to manage and account the books for the higher up management to see how the business direction can go.
Social entrepreneurship is taking the skills and ideas on how to profit from a product or service and applying it to a field to create substantive change. The key difference is the goal/mission set by the enterprise on how they will proceed with the company. For many companies the main goal is increasing profits, but a social entrepreneur is one who uses the increase in profits to create what the lectures call, “sustainable” change. These types of entrepreneurs are seen contrasted in the old children’s movie “Robots.” The entrepreneur the main character looked up to have the slogan of “see a need, fill a need” implying the business model of using profits to conduct change in the environment, whereas the replacement entrepreneur in their place was only focused on mass producing new products to fill the wallets of himself and the stakeholders in the company.
Entrepreneurs face a multitude of legal challenges both on the public side and on the government side. For many entrepreneurs, businesses that start up (mostly in tech fields) face legal challenges on the copyright front and the labor rights front. Many small start ups do not have a public relations team, nor will they have a legal team, which makes them susceptible to labor law infringement suits filed by disgruntled employees. On the government side, taxes and book keeping are the two major legal challenges entrepreneurs will have to learn about because the IRS is the one industry that can ruin a business in court.