Question

How does entrepreneurship create some adverse impact on society?

Hint:

Entrepreneurs must balance profit-making with ethical practices to ensure their ventures contribute positively to society.

Answer 1

While entrepreneurship is essential for economic growth and innovation, it can have negative effects on society. Some of the adverse impacts include:
1. Environmental degradation: Entrepreneurs may prioritize profit over sustainability, leading to pollution and resource depletion.
2. Exploitation of workers: In some cases, entrepreneurs may take advantage of cheap labor and poor working conditions to maximize profits.
3. Increased inequality: Entrepreneurs may create wealth for themselves, but without adequate redistribution mechanisms, this can lead to widening income inequality.
4. Cultural erosion: Rapid business expansion can sometimes undermine traditional cultures and local businesses.