Why do ethics matter in entrepreneurship?
Ethics refer to moral principles and values that individuals use to guide themselves from knowing what is right or wrong, or what is unjust. Entrepreneurs can make decisions for their business that may be ethical or unethical. Ethics is important in entrepreneurship because an ethical company builds trust and confidence with their people. Their business will grow when they are known for their reputation as a company that values good ethics. An ethical company values integrity, trust, fairness, and respect. Entrepreneurs that promotes equal opportunities and avoids discrimination is a good example of an ethical company.
How does my own personal budget related to an entrepreneurship budget?
My personal budget is related to an entrepreneurship budget because in order to begin pursuing my entrepreneurial dream, I must figure out how much I need to save to start up my business, how much income will I earn, and how much I can spend on my personal spending from my earnings. My personal budget focuses on how I manage my personal finances like my income, savings, investments, and expenses. An entrepreneurship budget is designed for managing the finances of my business venture such as production cost, salaries, marketing, rent, and other costs to keep the business running. They relate from each other because they are equally important to manage and they must be separated from each other so that expenses do not overlap.
Why do we need budgets?
Budgeting is an important tool to keep track of a person’s finances. It helps us plan and set goals for our future financials. Creating a budget helps us determine how much money we have, our expected earnings, and how do we plan on using the money that we have. This helps us keep track of our financials so we do not use up money that we do not have, as well as having an understanding of how much money we need in able to meet a goal. In simpler words, budgeting helps us avoid overspending and keeps us aligned with the expenses that we have. Decisions can be based on the budget that we have, especially when starting a business. An entrepreneur must have the money they have budgeted to start up the business and they must take in account the profit and expenses in having their business. A poorly planned business will not end up being successful. Budgeting can also help us take a closer look on our remaining balance after taking out all the expenses so that we can put that balance aside for savings or profit.
What is social entrepreneurship?
Social entrepreneurship is a concept that focuses on the combination of entrepreneurial principles with the target of creating a positive impact on the society and the environment. This is when entrepreneurs come up with innovative solutions that can tackle social problems in order to improve society. Compared to traditional entrepreneurs that focuses on maximizing profits, social entrepreneurs focus on how to solve problems that society is facing through their entrepreneurial skills and creativity. Social entrepreneurs build organizations such as non-profit organizations and social enterprises. Their drive and motivation as social entrepreneurs is make a change in the world and make it a better place.
What are the most significant legal issues entrepreneurs face?
There is always a possibility that legal issues may occur in a business ventures even when the business is careful with the way they are running their operation. The most significant legal issues that entrepreneurs face is complaints from their customers. Customers may sue a company for issues that they do not agree on. An example of that is false advertising, where a customer can sue a business for advertising misleading information although a business may not agree to their complaint. Another significant legal issue a business venture may face is through their employees. Companies must comply to the Employment and Labor laws. Failure to follow requirements such as minimum wage, overtime regulations, anti-discrimination laws when hiring, and offering employee benefits can lead to legal actions. It is important for organizations to have knowledge on legal issues they may face before starting a business in order for them to avoid it. Entrepreneurs must seek legal counseling or consult professionals such as lawyers or attorneys to help them with legal forms such as sole proprietor, partnership, s-corp, LLC, C-corp and non-profit in order to have legal protection.