1.     Why do ethics matter in entrepreneurship?

Ethics matter in entrepreneurship because good ethics build trust and confidence and make people want to do business with an entrepreneur whose ethical reputation is good.

2.     How does my budget relate to an entrepreneurship budget? How are they different?

My budget relates to an entrepreneurship budget in the way that both budgets show the source of money and how it will be spent. However, these budgets differ because the entrepreneurship budget requires extra planning to ensure the feasibility of the business.

3.     Why do businesses need a budget or financial forecast?

Businesses need a budget or financial forecast because the forecast helps enterprises anticipate income, expenses, and cash needs, illuminating the feasibility of a new business. Also, companies can use the budget to gain investor’s confidence. Finally, a budget helps firms to grow and avoid losses.

4.     What is your definition of social entrepreneurship? Give an example of an enterprise you read about from the Schwab Foundation website (Module page “Social Entrepreneurship vs. Business Entrepreneurship-2).

Social entrepreneurship is all about innovatively solving social issues, primarily focusing on the social impact. I found the Horn of Africa Development Initiative (HODI) most attractive among all the enterprises from the Schwab Foundation website. Fatuma perceived the legal divide in her society and aimed to provide affordable legal assistance to those who could not afford it.

5.     What are the most significant legal issues entrepreneurs face?

Entrepreneurs’ most significant legal issues are intellectual property, fraud, antitrust, contracts, employment, and torts.