OTE2601
Assignment 2
2025 (Answer
Guide) - DUE 15
June 2025
QUESTIONS WITH 100%
VERIFIED AND
CERTIFIED ANSWERS.
,OTE2601 Assignment 2 2025 (Answer Guide) - DUE 15 June 2025
QUESTIONS WITH 100% VERIFIED AND CERTIFIED ANSWERS. WRITTEN IN
REQUIRED FORMAT AND WITHIN GIVEN GUIDELINES. IT IS GOOD TO USE AS A
GUIDE AND FOR REFERENCE, NEVER PLAGARIZE. Thank you and success in
your academics.
UNISA, 2025.
Contents
QUESTION 1: A famous South African entrepreneur like Patrice Motsepe can mentor young
entrepreneurs in running a business. Discuss the reasons why most businesses fail. [20] ........... 2
QUESTION 2 .............................................................................................................................................. 5
2.1 Discuss the role of Trade Unions in the economy of a country (10) ........................................ 5
2.2 Discuss the steps to take before compiling a cash flow plan (10) ........................................... 6
References .............................................................................................................................................. 8
QUESTION 3 .............................................................................................................................................. 8
QUESTION 3.1 ....................................................................................................................................... 8
Introduction.......................................................................................................................................... 9
Creative Methods to Generate Business Ideas ............................................................................. 9
Conclusion ............................................................................................................................................. 11
QUESTION 4 ............................................................................................................................................ 11
4.1 Product (5 Marks) .......................................................................................................................... 12
4.2 Price (5 Marks) ............................................................................................................................... 12
4.3 Place (5 Marks) .............................................................................................................................. 13
4.4 Promotion (5 Marks) ...................................................................................................................... 13
Conclusion ............................................................................................................................................. 14
References ............................................................................................................................................ 14
QUESTION 5 ............................................................................................................................................ 14
Introduction............................................................................................................................................ 14
5.1 Factors that Have a Direct Influence on the Choice of Business (8 Marks) ......................... 15
5.2 Characteristics of a One-Man Business (6 Marks) ................................................................... 16
5.3 Record Keeping in a Business (6 Marks) .................................................................................. 17
Conclusion ............................................................................................................................................. 18
, QUESTION 1: A famous South African entrepreneur like Patrice Motsepe can mentor
young entrepreneurs in running a business. Discuss the reasons why most businesses
fail. [20]
Introduction
In South Africa, entrepreneurship is increasingly being promoted as a solution to
unemployment and poverty. Influential entrepreneurs like Patrice Motsepe, who is not
only a mining magnate but also a philanthropist, serve as role models for aspiring
business owners. Despite this inspiration, many small and medium enterprises (SMEs)
in South Africa fail within the first few years of operation. Understanding the causes of
these failures is critical for prospective entrepreneurs, policymakers, and mentors like
Motsepe who aim to nurture sustainable businesses.
1. Lack of Business and Financial Planning
One of the primary reasons businesses fail is poor planning. Many entrepreneurs start
businesses without a comprehensive business plan that outlines goals, strategies,
financial projections, and market analysis. Financial mismanagement, including poor
budgeting and inadequate cash flow management, is a common downfall (Cant & Wiid,
2013). Without clear financial planning, businesses may overspend or run out of capital
before becoming profitable.
2. Inadequate Market Research
Entrepreneurs often fail to understand the market needs and customer preferences. In
South Africa, cultural, regional, and economic differences greatly influence consumer
behavior. A business that does not conduct thorough market research may launch
products or services that are not aligned with market demands, leading to poor sales
and eventual closure (Fatoki, 2014).
3. Poor Leadership and Management Skills
Assignment 2
2025 (Answer
Guide) - DUE 15
June 2025
QUESTIONS WITH 100%
VERIFIED AND
CERTIFIED ANSWERS.
,OTE2601 Assignment 2 2025 (Answer Guide) - DUE 15 June 2025
QUESTIONS WITH 100% VERIFIED AND CERTIFIED ANSWERS. WRITTEN IN
REQUIRED FORMAT AND WITHIN GIVEN GUIDELINES. IT IS GOOD TO USE AS A
GUIDE AND FOR REFERENCE, NEVER PLAGARIZE. Thank you and success in
your academics.
UNISA, 2025.
Contents
QUESTION 1: A famous South African entrepreneur like Patrice Motsepe can mentor young
entrepreneurs in running a business. Discuss the reasons why most businesses fail. [20] ........... 2
QUESTION 2 .............................................................................................................................................. 5
2.1 Discuss the role of Trade Unions in the economy of a country (10) ........................................ 5
2.2 Discuss the steps to take before compiling a cash flow plan (10) ........................................... 6
References .............................................................................................................................................. 8
QUESTION 3 .............................................................................................................................................. 8
QUESTION 3.1 ....................................................................................................................................... 8
Introduction.......................................................................................................................................... 9
Creative Methods to Generate Business Ideas ............................................................................. 9
Conclusion ............................................................................................................................................. 11
QUESTION 4 ............................................................................................................................................ 11
4.1 Product (5 Marks) .......................................................................................................................... 12
4.2 Price (5 Marks) ............................................................................................................................... 12
4.3 Place (5 Marks) .............................................................................................................................. 13
4.4 Promotion (5 Marks) ...................................................................................................................... 13
Conclusion ............................................................................................................................................. 14
References ............................................................................................................................................ 14
QUESTION 5 ............................................................................................................................................ 14
Introduction............................................................................................................................................ 14
5.1 Factors that Have a Direct Influence on the Choice of Business (8 Marks) ......................... 15
5.2 Characteristics of a One-Man Business (6 Marks) ................................................................... 16
5.3 Record Keeping in a Business (6 Marks) .................................................................................. 17
Conclusion ............................................................................................................................................. 18
, QUESTION 1: A famous South African entrepreneur like Patrice Motsepe can mentor
young entrepreneurs in running a business. Discuss the reasons why most businesses
fail. [20]
Introduction
In South Africa, entrepreneurship is increasingly being promoted as a solution to
unemployment and poverty. Influential entrepreneurs like Patrice Motsepe, who is not
only a mining magnate but also a philanthropist, serve as role models for aspiring
business owners. Despite this inspiration, many small and medium enterprises (SMEs)
in South Africa fail within the first few years of operation. Understanding the causes of
these failures is critical for prospective entrepreneurs, policymakers, and mentors like
Motsepe who aim to nurture sustainable businesses.
1. Lack of Business and Financial Planning
One of the primary reasons businesses fail is poor planning. Many entrepreneurs start
businesses without a comprehensive business plan that outlines goals, strategies,
financial projections, and market analysis. Financial mismanagement, including poor
budgeting and inadequate cash flow management, is a common downfall (Cant & Wiid,
2013). Without clear financial planning, businesses may overspend or run out of capital
before becoming profitable.
2. Inadequate Market Research
Entrepreneurs often fail to understand the market needs and customer preferences. In
South Africa, cultural, regional, and economic differences greatly influence consumer
behavior. A business that does not conduct thorough market research may launch
products or services that are not aligned with market demands, leading to poor sales
and eventual closure (Fatoki, 2014).
3. Poor Leadership and Management Skills
