Solution
Dr. Saloni answered on
Apr 28 2022
Risks and Ethical Issues
Contents
Introduction 1
Hyper Anna 1
Part One: Risks 1
Risks When Launching 2
Team Risk 2
Product Risk 2
Execution Risk 3
Risks When Investing 3
Security Risks 3
Investment Risks 4
Business Risks 4
Part Two: Ethical Issues 5
Ethical Issues when Launching 5
Cultural and Societal Impact 5
Desire for Achievements 5
Shortage of Infrastructure 6
Ethical Issues when Investing 6
Short-termism 6
Information 7
Bargaining Power 8
Conclusion 8
Reference list 8
Introduction
Start-ups and entrepreneurship are critical to the growth of the economic system. Several investors are drawn to entrepreneurs with revolutionary knowledge and skills, and they make investments only in this kind of entrepreneurial endeavor. A major proportion of the entrepreneur venture is driven by business ethics. There are still specific risks involved with the launch of entrepreneurial ventures and start-ups. As a consequence, investors and entrepreneurs must make sure that the associated ethics and risks are identified early on so that they do not negatively impact the business later on (Bena et al. 2019).
This paper elaborates on the various risks as well as ethical implications attributed to start-ups. Moreover, the scenario of Hyper Anna has been considered for the same.
Hyper Anna
Hyper Anna is a renowned start-up that works primarily in data analysis driven by artificial intelligence, which assists an individual or an individual with varying sorts of tedious and technical work such as code writing, data analysis, chart production, as well as other substantial concepts involved in data analytics. This start-up enables individuals to pose questions about the driving forces of the company in simple English (Thomsen 2021).
Part One: Risks
Risks When Launching
Team Risk
There is a strong possibility that the team member will not open up or even be prepared to take all the risks. As a result, it is necessary to make sure that the entrepreneur acquires efficient leadership abilities to effectively manage the workforce and serve as a coach, confidante, and, if necessary, the start-up incubator to assist team members in preparing for any issues that may occur during the launch of the new enterprise (Couto et al. 2021). Furthermore, disagreements between teammates emerge, and as a consequence, the entrepreneur needs to deliver every team member with the requisite coaching and training concerning the venture and also its business expansion outlook, so that every team member can work collaboratively with others. As an entrepreneurial venture, Hyper Anna's management needs to provide team members with the opportunity to incorporate their greatest talents and work accordingly (Giese, Nagy & Rauis 2021).
Product Risk
When the entrepreneur has settled on the service or product to be provided through the company, it is essential to consider the services' or products' feasibility in the sector where they will be launched. This is assumed to be the greatest concern of any commercial venture because it determines whether the venture succeeds or fails. Moreover, the entrepreneur must be confident in its service or product, as future investments will be based on it. In the instance of the Hyper Anna start-up, the AI-powered data analysis resource will be responsible for supplying highly crucial data on which users and clients will base their different strategies (Ruliputra et al. 2019).
Execution Risk
Several entrepreneurs commonly become engrossed in the details of their enterprises and lose sight of the overall business trajectory and strategy. Conversely, several of the company's founders and entrepreneurs remain at a high standard and, as a consequence, overlook sensitive and crucial details that may inevitably lead to significant issues (Ruliputra et al. 2019). To minimise the risk of possible loss, the co
ect response is to use management control systems. The Hyper Anna founders are contemplating the utility of AI technology for data analytics, but there is a big question regarding whether it is possible to recognise the trend depending on the information. Moreover, there is a danger of data protection in the procedure that cannot be overshadowed by a start-up organisation (Giese, Nagy & Rauis 2021).
Risks When Investing
Security Risks
The significant safety risks that come with investing in a new enterprise encompass dilution, instrument risks, valuation risk, and minority stake. Start-up businesses may necessitate financial financing in the long term, and investors may face security issues as a result. Securities are regarded less...