MNE3701
ASSIGNMENT 2 SEMESTER 2 2026
UNIQUE NO.
DUE DATE: 30 SEPTEMBER 2026
, MNE3701 Assignment 2 Semester 2 2026
Due 30 September 2026
QUESTION 1
Using real-world examples, critically explain how you would fund your business.
Justify why you would select certain financing options rather than alternatives.
Introduction
Obtaining appropriate finance is an important decision for an entrepreneur because the
wrong financing structure can place unnecessary pressure on a new business. A
business requires money not only to start operating, but also to purchase assets, obtain
stock, pay employees, market its products and survive periods when customers have
not yet paid. I would therefore not depend on a single source of finance. Instead, I
would combine different sources according to the purpose of the funds, the cost of
finance and the level of risk involved.
For purposes of this discussion, I would establish a South African small enterprise
producing and selling environmentally friendly household cleaning products. The
business would initially require approximately R450,000. I would use a combination of
my own contribution, government-supported funding, supplier credit and carefully
selected external finance. The choice would be based on maintaining ownership,
controlling financing costs and ensuring that monthly repayments remain manageable.
1. Personal contribution
My first source of finance would be my own savings. I would contribute approximately
R70,000 towards the business.
This money would be used for relatively small initial expenses such as registration,
market research, product development, branding and the first purchases of raw
materials. Personal finance is useful at the beginning because it does not create an
ASSIGNMENT 2 SEMESTER 2 2026
UNIQUE NO.
DUE DATE: 30 SEPTEMBER 2026
, MNE3701 Assignment 2 Semester 2 2026
Due 30 September 2026
QUESTION 1
Using real-world examples, critically explain how you would fund your business.
Justify why you would select certain financing options rather than alternatives.
Introduction
Obtaining appropriate finance is an important decision for an entrepreneur because the
wrong financing structure can place unnecessary pressure on a new business. A
business requires money not only to start operating, but also to purchase assets, obtain
stock, pay employees, market its products and survive periods when customers have
not yet paid. I would therefore not depend on a single source of finance. Instead, I
would combine different sources according to the purpose of the funds, the cost of
finance and the level of risk involved.
For purposes of this discussion, I would establish a South African small enterprise
producing and selling environmentally friendly household cleaning products. The
business would initially require approximately R450,000. I would use a combination of
my own contribution, government-supported funding, supplier credit and carefully
selected external finance. The choice would be based on maintaining ownership,
controlling financing costs and ensuring that monthly repayments remain manageable.
1. Personal contribution
My first source of finance would be my own savings. I would contribute approximately
R70,000 towards the business.
This money would be used for relatively small initial expenses such as registration,
market research, product development, branding and the first purchases of raw
materials. Personal finance is useful at the beginning because it does not create an
