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Question: Identify and discuss the various risks and ethical issues to be considered when launching and investing in a start-up. Answer: Introduction Business could be everyones cup of tea but succeeding at it, is not. And hence starting a business has been never so easy. Commencing a new venture is a complex task and that comprise of execution of various operations and functionalities and adoption of various approaches and models is also required to be done. There are varied ranges of factors that will be stimulating the business environment and will surely affect the start-up of the business. The prime factors required for starting up a new venture are methods, manpower, material and machines (Arregle, et al. 2015). There are the major ingredients that will be aiding an entrepreneur in the process of commencement of a new venture. Furthermore, the process and operations that are executed for the commencement of the new business venture are also exposed to various risks and ethical issues and the same are required to be dealt in a professional manner for the success and growth of the start-up. The below presented summary has been focused on the various risks and ethical issues faced while launching and investing in start-up. Jet.com and Flatiron health are the two start-ups that will be used in the below presented report as case studies. These business organizations are new ventures and are commencing business operations from last five years stepping towards success. Risk assessment As mentioned above planning for a thinking and planning for a new start-up is an easy task but commencement of the same is not everyones cup of tea. Starting a business has been so easy. The economy has been offering varied range of opportunities but just like everything has its own pros and cons and also has fully high rated risks (Ben-Ari, and Vonortas, 2017). But once the entrepreneurs are able of analyzing the risks associated with the commencement of the new venture they are required to make essential provisions for the same for attaining success and growth in the business: The below presented are the 3 potential risks that can be faced by a new venture and the mentioned risks are demonstrated from the entrepreneurs and investors point of view: Product risk: What to be produced is one of the initial decisions while starting a new venture. This has been considered as one of the most crucial decision while commencing a business as business totally depends upon the delivery of the goods produced and sold. There are various risks that will be faced by an entrepreneur while before and while producing a product. For instance, the management of Jet.com is deciding for the product on the basis of market analysis and other surveys executed, screening of the products for checking the feasibility so as to get aware that the product is enough capable of surviving in market and also making the customers satisfy (Li, 2014). If the products are unable to satisfy the customers demands then it will be considered as a risk on the entrepreneurs perceptive. Moreover, the investors also make their decision of making investments in the venture after monitoring the feasibility aspect of the product. One of the greatest risks from the investors po int of view is that the inefficiency of the products in meeting and accomplishing the demands of the consumers. This risk will be affecting the investors while deciding for investments in new venture (Skripak, 2016). Market risk: This is one of the biggest and common risks that will be affecting both the entrepreneur and investors decisions on large scale. For instance, if Flatiron health is the entrepreneur and founds itself unable in collecting the proper knowledge and data of the market then it will be problematic for the venture. In-appropriate knowledge and data about the market will lead in development of a product that wont be able in satisfying the demands of the customers (Kvedaraite, 2013). And this situation can be considered as a risk for the new venture from the entrepreneurs perspective. Investors also have various market risks such as fluctuations in the market due to the political and governmental interference. Risk of Changing trends: This one of the most stimulating factor or can also be considered as the biggest risk that will be directly affecting the entrepreneur and indirectly to the investors (Van Aardt, and Bezuidenhout, 2014). Such as the changes in the market trends such as any up-gradation in the technological sector, changes in the perception of consumers, fluctuations in the taste and preferences of the consumers will have direct impacts on entrepreneur. For example, Flatiron health is a software company and any of the changes in the IT sector is required to be considered as an essential part for the business firm. And if the business firm fails to capture such data then it will be proven problematic for the entity and will overcome as an issue (Burns, 2016). Change in the norms and regulations relating to the new venture will affect the investors largely. The investors will have to execute detailed research on the related aspects before making investments. Failure in any such aspect will lead to generation of threats and risks for the venture. Ethical issues Business ethics has been considered as one of the integral components and essential requirements for starting a new venture. And this concept has also been considered as one of the biggest issue for an entrepreneur and also for an investor (EuroLogo Marketing, 2018). There are various ethical dilemmas that will be faced as issues by the investors and entrepreneurs in different forms while commencing a new venture and the same are presented as follows: Business licenses and Trademark: Business licenses are the permit that is taken from government of the country. Without getting a legal permit, the business does not have authenticity. So, ignoring the legal documentation can create an ethical issue to the organization and it can halt the business operations permanently. Moreover, it is very important for the companies to trademark the business. Trademark is the representation of the business among clients and customers. Generally, start-up businesses do not consider the trademark protection as a significant factor. It can lead the start-up to an ethical issue of trademark infringement. The major example of this issue is the case of PayPal and PayTM. Currently, PayPal has alleged PayTm of copying its business logo to enhance its customer base (Chell, et al, 2016). It has affected the business of both the companies. If the business does not get trademark copyrighted, then it can shake the base of business. In addition to this, it may influence the sales of business i n the market and it may have adverse impact on the investment decision on investors. It is one of the major issues to entrepreneur that needs to be considered while starting up a new venture (Klotz, et al, 2014). Desire to achieve: An entrepreneur decides for starting a business and or a new venture because he/she has an idea for a new product or services. A passion and commitment is required for that idea and never-give-up attitude for gaining knowledge and learning and also dealing though others might perceive as failure (Kirzner, 2015). High level of courage and strength is required and furnace a new path for the idea of a business. It will also require the entrepreneur to make serious efforts in terms of money, time and energy and will also take him away from his family and other relations for time being. And thus for coming over all these challenges the business entrepreneurs may opt. for shortcuts for heading towards success with a greater speed. And opting for shortcuts will lead in development of an ethical issue. Cultural and societal impact: On the basis of the research executed it has been analyzed that at societal level the entrepreneurship is held responsible in significantly influencing the lives of the individuals in upcoming times (Vonortas Kim, 2015). To the extent that the lives of individuals are molded by the marketing activities will bring a change in the way of living driven by the entrepreneurs. These are the prophets will be developing and commercializing the new products and services for which no presence of market was there. An entrepreneur possesses the power of shaping and shifting the paradigm in ethics and community services by making use of leadership skills. By utilizing these visions the entrepreneur will be able in developing new products, innovations, technologies, concepts or services creating demand for the brand in the new market regions (EuroLogo Marketing, 2018). Such business corporations not only exercise tremendous economic power but also symbolic power as t hey become the role models for the next generation of organizations. Entrepreneurs face arduous encounters and, certainly, leading the societies with values based management, being intensely conscious of some of these burdens and an emphasis on ethical issues in business might aid the creative thinkers in the attainment of their dreams. Top three risks and ethical issues On the basis of the current analysis it has been evaluated Jet.com and Flatiron health ate the two new ventures that are establishing the business in their concerned markets regions. The report has been basically designed and developed on the thought that the new business start-ups face various risks and ethical issues and these ethical issues and risks are classified as per the perceptions of the entrepreneur and investor (Brenkert, 2017). Further, the report has been presented for focusing the most prior risks and threats from the above presented one: The first factor that has been nominated at the top of the list is the ethical issue due to lack of infrastructure and this has been kept at the top most priority. As infrastructure is one of the basic requirements for commencing or starting the business. Building up framework, office premises for staff and execution of tasks at the underlying stage has been considered as a moral issue for the business visionary of any of the new pursuit. The business person should himself oversee and execute the dealing with and observing tasks and functionalities. The business visionary itself will assume a few parts, for example, checking the conduct of group, guaranteeing the bearing of endeavors towards expanding productivity in this manner making a corporate culture (Shaw and Barry, 2015). All of the above are the operations and functionalities that are required to be executed by an entrepreneur for conducting a business in an ethical manner. And hence this is the reason due to which this ethic al issue has been considered on priority. The second one is the risk due to the changing trends in the market that has been considered in the priority list and is held liable in stimulating the business environment for the new venture while launching the business. Market is the place where the outcomes that are the products and the services are expected to be sold and are the revenue generators for the business firms. And hence the trends and fluctuations in the market are required to consider as significant while deciding for launching the new venture and making investments in the same (Hyytinen, Pajarinen, and Rouvinen, 2015). The updated data regarding the changing trends of the markets will enable the business ventures to make changes accordingly and keep them a step ahead in the competitive environment. Maintainable a sustainable position will also be made possible as at the initial stages it will be very tough for the business entity to survive in the business environment. The last but least is the risk due to product point that can be considered in the list of priority. Product is the final outcome of all the efforts made by the team within a business venture and is one of the integral factors that will aid the entity in earning profitability. And hence developing and designing a product, that is enough capable of satisfying the consumers requirements has been considered as an essential process to be executed by the new venture. And if not done, then the business entity will be facing several issues and will be at risk. Conclusion In the limelight of the above executed analysis it has been inferred that commencing a new business venture is a crucial task and this process is associated with number of risks and ethical issues. These risks and ethical issues are required to be considered by the entrepreneur while launching the business and even by the investors while making investments in the same. The above report has been presented focusing towards the ethical issues and risks pertaining that will be faced by the entrepreneur and investors while commencing a new venture. References Arregle, J.L., Batjargal, B., Hitt, M.A., Webb, J.W., Miller, T. and Tsui, A.S., 2015. Family ties in entrepreneurs' social networks and new venture growth.Entrepreneurship Theory and Practice,39(2), pp.313-344. Ben-Ari, G. and Vonortas, N.S., 2007, Risk financing for knowledge-based enterprises: mechanisms and policy options, Science and Public Policy, 34(7), 475-488. Brenkert, G.G., 2017. Entrepreneurship, ethics, and the good society. InEntrepreneurship(pp. 85-128). Routledge. Burns, P., 2016.Entrepreneurship and small business. Palgrave Macmillan Limited. Chell, E., Spence, L.J., Perrini, F. and Harris, J.D., 2016. Social entrepreneurship and business ethics: Does social equal ethical?.Journal of business ethics,133(4), pp.619-625. 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