Why do ethics matter in entrepreneurship?
Ethics are important in entrepreneurship to keep a business operating in a fair and morally right manner. This means that the business will operate in a way that is in good favor to both their customers and employees. Following ethics will help guide business choices that will be considered fair and moral. Operating with a good set of ethics will help create a positive reputation for the business and its employees. Having a good reputation for treating others fairly and not conducting unethical business will help others see the value in the way a business operates.
How does my own personal budget relate to an entrepreneurship budget? How are they different?
A personal budget can assist a person in understanding where money is being spent in their business. This can aid in understanding the cost of operations, materials, labor, and other supplies in operating a business. Using this information, a business owner can look to reduce this cost and increasing their profit. Understanding the cost of operations can aid in figuring out the break even point that is needed for a business to become profitable. An entrepreneurship budget allows an individual to understand the expenses, available capital, miscellaneous expenses required to operate allowing for an estimation of revenue. These expenses will be used to understand how a business is doing financially.
Why do businesses need a budget or financial forecast?
Businesses need a financial forecast to understand how their business has performed historically to predict how their company might preform in current or future markets. This allows a company to predict and take advantage of future market operations. A business owner should use this information to be aware of their businesses financial health and to understand overall cash flow.
What is social entrepreneurship? Give an example.
Social entrepreneurship is when individuals, groups, or entrepreneurships develop solutions that have the potential to solve social issues. Helmy Abouleish is an Egyptian pharmacologist that helped implement biodynamic farming methods in Egypt. Abouleish help found the Sekem group that works to bring climate change awareness and food security to Egyptian farmers. The Sekem group has worked to increase production of Egyptian farms through educating on new methods of pest control and other biodynamic methods. This has dropped pesticide use by 10 percent in the area and lead to a ban of crop dusting in Egypt. The success of the Sekem group has lead to long lasting partnerships and the overall success of the groups mission.
What are the most significant legal issues entrepreneurs face?
Choosing the correct legal form for your business is one of the most important legal issues faced by all businesses. This is important to protect your business and to have your business be more resilient to legal issues that will arise. The type of legal form that a business selects come with several advantages and disadvantages. Sole proprietorships and partnerships provide the least legal protection but are the cheapest to start. Corporate forms are more difficult to start but offer greater legal protection.