According to Arian ( 2017), the four main ethical issues in business that every entrepreneur faces include lack of infrastructure, difficulty in finding funders and investors, desire to achieve, and cultural and societal impact. If you compare a startup company managed by an entrepreneur and a small staff to a traditional corporation, there are noteworthy differences that could lead to ethical lapses and oversight. Lack of Infrastructure is a huge contributor to ethical issues in a business environment. Startups have no similar framework within which to address moral problems in business and challenges, unlike large corporations that have hired a Corporate Compliance Officer (CCO) with a budget and monitoring authority and dedicated staff can strive in an organized manner for ethical compliance. The entrepreneur is likely overwhelmed with many roles at the company and has minimal time to dedicate to monitoring the behavior of his/her team and the company as a whole. Entrepreneurs focus their energies predominantly on ensuring profitability, creating a corporate culture, hiring efficient staff and leaders, marketing and more. Team members likely also have numerous roles, each carrying a more massive load than usual to jump-start the company forward. (Arian, 2017) An entrepreneur also struggles with the desire to achieve; she decides to embark on the journey of starting a new company because she believes in her concept for a new product or
service or technology. There is a commitment, determination, and passion to the idea; an attitude to learn and fight through thick and thin to what others might perceive as a failure. It takes plenty of boldness and strength to stand up and establish a path for a new idea. It also takes a lot of sacrifice of time and money and energy taking away from an entrepreneur’s family and friends. Along the way, pressures pile up, and company owners might see shortcuts or fast-track methods to achieve the same success because of their hunger to achieve success; making an unethical decision. (Arian, 2017) Environmental elements also lead to the downfall of many startups, such as the existing trends, limitations in the markets, and legal issues. While a maleficent environment facilitates the failure of startups, a conducive one could result in its failure. The setting for a startup is even more difficult and critical than for a successful company. (Salamzadeh, Aidin & Kesim H.K, 2015) Inability to acquire BusinessLicences is another challenge that entrepreneurs face. Without a legal business permit, there is no authenticity in your business. Not acquiring this legal document while being distracted by the challenges of a new business can halt your business activities permanently. An entrepreneur must consider the collection of business license as their priority.