- Why do ethics matter in entrepreneurship?
a. Ethics matter in entrepreneurship because it is ultimately good for business. If a
company or a product utilizes poor ethics, then clients and investors will be less
likely to want to be involved with you. Good ethical behavior can be a criteria that
people have when looking at business or product. Having that ethical behavior is
good for the company, for the advertising, for the investors, and for the
consumers. - How does my own personal budget relate to an entrepreneurship budget? How are they
different?
a. Both a personal budget and a entrepreneurship budget calculate what financial
dues are required and how much remains from the income. For example, every
month an individual may have a set amount of bills and other financial obligations
that take from their income. This is their budget. Similarly, a business or
entrepreneurship has a set amount of money they are due to spend every month
which is their monthly budget. How they differ though is that the business or
entrepreneurship budget can have sub-budgets based on whether they have
departments or expenditures while the personal budget may be very linear and
based on an individual or family - Why do businesses need a budget or financial forecast?
a. Businesses need both a budget and a financial forecast so that they utilize their
finances strategically. A budget creates a constant or updated amount of spending
that will be required for a company or business. This is important because it
shows how much money is being routinely spent. A financial forecast can grow or
provide better analysis for a budget because it predicts a expected amount of
revenue and income for the company. Combing the information from a financial
forecast with a budget allows a company to update their budget to reflect their
financial gains or losses for growth or preservation. - 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).
a. Social entrepreneurship is when an entrepreneur develops and funds a solution to
address a societal issue. This is using the entrepreneurship method in solving a
problem. An example of this would be the Sekem Group, a initiative that sought
to develop biodynamic farming in Egypt which brought economic and agricultural
growth. This enabled for organic produce to be more accessible in the region. - What are the most significant legal issues entrepreneurs face?
a. The legal issues that entrepreneurs face range from various topics and problems
throughout their business journey. From wage and employee laws, to tax laws,
there can be a variety of laws that may challenge a company. The most significant
though are compliance laws as well as establishing a Founder’s Agreement.
Compliance laws are a set of laws that are imposed on companies by various
government agencies and departments. These laws can range from a variety of
topics and fields which require businesses to be well coordinated in these various
topics. A Founder’s Agreement is especially important to the founding of a
company as it is the legal contract that the founders set that lay out the rights,
liabilities, and dues of each founder. This can break a company if not written right
as it could create conflict or division within a company if misused or breached.