1.     Why do ethics matter in entrepreneurship?

Ethics is important in entrepreneurship because having a good reputation is necessary for any business to succeed.  Having unethical entrepreneurship business practices can lead to loss of trust and customers.  The loss of trust and customers results in a loss of profit and even the failure of the business to recover.  Ethical entrepreneurs are more likely to achieve growth and returning customers by doing the right things like obeying laws and setting an example for the business and employees.  In order for entrepreneurs to succeed, ethics should be prioritized throughout the business.

2.     How does my own personal budget related to an entrepreneurship budget? How are they different?

Personal budgets and entrepreneurial budgets are similar by the fact that they both involve financial management.  For example, I have a monthly budget for my mortgage, utilities, food, gas, and savings, and I will not go over my monthly budget and overspend, resulting in debt.  For an entrepreneurship budget, there is also a monthly budget for expenses like office rent, utilities, marketing, employee pay, etc.  My personal budget differs from an entrepreneurship budget in that my personal budget is intended to manage my own money where an entrepreneurship budget is intended to manage the company growth and profits.

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

In the starting process, businesses require a budget to prepare and show investors and business partners on how money will be spent and allocated.  Entrepreneurs need to see the expected expenses and income to ensure that they have enough funds to run their businesses successfully.  Making a monthly financial forecast spreadsheet can help a business in budget planning.  It helps in the allocation of funds to make sure that there is enough money to cover expenses and not run into any financial issues.

4.     What is your definition of social entrepreneurship?

My definition of social entrepreneurship is a business approach to address social problems in communities.  Social entrepreneurship seeks creative solutions to pressing societal challenges.  For example, on the Schwab Foundation website, I read about a social entrepreneur named Kyle Zimmer who distributed 225 million free books to low-income families.  Kyle Zimmer founded First Book in the United States because she believed that having books to read at home was a good predictor of future success.  To support their activities, First Book also operates an entirely non-profit online book marketplace, through which over 15 million books are moved each year.  Kyle Zimmer is a great example of a social entrepreneur who has helped change children’s lives.

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

The most significant legal issue that entrepreneurs face is choosing the incorrect legal form for a new business, which leads to tax issues.  Entrepreneurs must understand the distinctions between sole proprietorships, corporate forms, and C-corporations because they provide different legal protection and tax obligations.  For example, sole proprietorships provide the least legal protection, whereas corporate forms provide more legal protection.  Entrepreneurs must also follow industry-specific regulations and licensing requirements at both the state and federal levels or face legal issues.