1. What is the primary driver of the social entrepreneur?-The primary driver of the social entrepreneur is social need. They are driven to make the world a better place and addressing social issues.
2. Should green or cleantech ventures be classified as social enterprises? If so ,why?-I do believe that they should be classified as social enterprises simply because Draytons definition of a social entrepreneur are those individuals who use innovative solutions to solves societies most pressing social problems, which exactly what green/cleantech ventures strive to accomplish.
3.  What are some of the negatives of forming the social venture as a nonprofit?-Complicated tax and corporate governance issues, inability for founders to participate financially, difficult to sustain over time, inability to attract equal investments, difficult to attract top talent.
4. Why do stakeholders view the social venture differently from a traditional venture? -Social ventures tend to have greater stakeholder issues and challenges than a traditional venture. The emotional components are heightened and everything feels more intense. External stakeholders place a stronger scrutiny on the venture asking more questions seeing that the venture provides accurate information. Internal ventures look at growth and the challenges social ventures are faced with such as hiring and communication.
5. What are some of the growth challenges of a social venture?-One of the biggest growth issue for a social venture are employees. Employees who are on the same page as the social venture are driven by a social mission and considered “followers” rather than employees. They are emotionally committed to a very strong degree. This makes it really easy for those followers to feel betrayed if the venture were to do something out of character or “stray” off the mission. Also it will be a challenge to keep those followers motivated through out the course of the venture. As a social entrepreneur, the biggest problem you’ll be asking yourself here is whether you should hire a regular employee who isnt as committed to the businesses goal or hire a follower who believes in the cause.

• Differences between Social Entrepreneurship, Corporate Social Responsibility and Philanthropy.-Corporate social responsibility mainly focuses on following and adhering to social norms within a business. There is no formal responsibility. Philanthropy is different in the sense that it is just charity work and is done out of the goodness of ones own self. A social entrepreneur draws upon business techniques to find solutions to social problems. It uses the profits as a means of tackling issues in society in hopes of changing for the better.
• Differences between Social entrepreneurship and Business Entrepreneurship.-Both fulfill a need in the market and seek to earn a sustainable amount of profit. However, social entrepreneurs measures their performance on the positive impact its had on society whereas a business entrepreneur is solely focuses on revenue.

My venture idea is to open up a fitness center/gym around my neighborhood. In todays society youll find that people tend to place a lot of time and effort into staying fit and being healthy. We aspire to have “summer bodies”, look like our favorite celebrities, be active in our daily lives and be the best that we can be. So why not give them a place where those needs can be met?

So here are a some issues gym goers usually run into (based on secondary and primary market research); Convenience, affordability and quality. I believe that there is no primed time to workout and a gym should be open for most hours of the week. The equipment should be state of the art and broken machines will be periodically replaced for quality assurance. My competitions around me are(results based off of ReferenceUSA); Golds Gym, Planet Fitness, Richies Gym and although it is quite some distance away, LA Fitness. Each one of these gyms come across one or more of the issues stated earlier. These competitors take away a segment of my target market which are those who only wish to life weights. I will use niche marketing concepts to counteract this dilemma by addressing the different needs of the market and not focus on just that one entity. For example I plan on offering classes such as Zumba, yoga, fitness classes, etc. Also there will be basketball courts, trainers and a smoothie bar available.

I am offering an alternative to someone who wants to do more than just lift weights. My target customer is anyone that is just trying to get fit, no matter their age. This business would be able to sustain itself because people place an emphasis on staying fit. Its scalability and profits would go hand in hand as the popularity of the business grows and gaining a steady stream of loyal customers.

1.  What are the factors in deciding what form of ownership is best suited for the potential business?

-The factors that determine what form of ownership is best suited for the potential business are first identifying the legal structure in regards to liability, law and attracting capital. Also you want to decide on the businesses long/short term needs and take into consideration tax payments. You might want to go over how much capital is needed for this business and if there will be any continuity.

2.Briefly describe the advantages and disadvantages of a sole proprietorship and partnership?

-The advantages of a sole proprietorship include: the owner makes all the call, the business can be terminated at any time due to a single ownership, least regulated form of ownership and it has a profit incentive meaning after all debts are paid, all profits go straight to the owner.
The disadvantages of a sole proprietorship are as follows: there can be a lack of skill in certain areas due to there only being one person and most of all, the owner is liable for all debts and creditors can go after personal assets because of this.

-The advantages of a partnership are: they are easy to establish, your partner(s) may compliment each others lacking skill, more flexibility, and they are not subject to federal taxation.
The disadvantages of a partnership include: unlimited liability to one partner usually being the general partner, restrictions on raising capital, and the potential for conflict between partners.

3.Explain the corporate form of ownership and how a business is incorporated.

-A corporate form of ownership is a separate legal entity apart from its owner(s) and may engage in business, sue or be sued, issue contracts and pay taxes. Here the stock holders are the owners. The three primary sections of a corporation are its stock holders, board of directors and the officers.
The incorporation of a business varies from state to state. However generally speaking the easiest route involves you requesting forms and information from the local secretary of state, obtaining an agent for the business, selecting the corporate name (You have 30 days to this part), and preparing a certificate of incorporation with filing fees and your first annual charge.

4.List the differences between the S-Corp. and the limited liability company.

-The differences between the two are as follows: an S-corp doesnt have to pay double taxation and is taxed like a partnership, and has restrictions on ownership. Whereas a LLC can any number of owners, is not owned by the stock holders, easy to form/establish and contributes and distributes property tax free.

After reading this chapter and getting a better insight on the different forms of ownership I believe I might go with a partnership in regards to opening my own local gym.