OTE2601
ASSIGNMENT 2 2025
UNIQUE NO.
DUE DATE: 15 JUNE 2025
, OTE2601 Assignment 2 (2025)
QUESTION 1
Discuss the reasons why most businesses fail.
[20 Marks]
1. Lack of Planning
Many entrepreneurs start businesses without a solid business plan. This leads to
poor decision-making and lack of direction.
2. Inadequate Capital
Insufficient funds limit business operations, making it hard to cover startup costs,
operating expenses, and unexpected emergencies.
3. Poor Management
Business owners may lack the necessary managerial skills, such as financial
management, marketing, and human resources.
4. Lack of Market Research
Without proper market research, businesses may offer products or services that
are not needed, poorly priced, or wrongly targeted.
5. Poor Location
A bad business location, such as one with low foot traffic or poor accessibility,
negatively affects sales and customer acquisition.
6. Failure to Adapt
Businesses that fail to respond to market trends, consumer preferences, and
technological changes risk becoming obsolete.
7. Overexpansion
Expanding too quickly without adequate infrastructure or market demand can
strain resources and disrupt operations.
ASSIGNMENT 2 2025
UNIQUE NO.
DUE DATE: 15 JUNE 2025
, OTE2601 Assignment 2 (2025)
QUESTION 1
Discuss the reasons why most businesses fail.
[20 Marks]
1. Lack of Planning
Many entrepreneurs start businesses without a solid business plan. This leads to
poor decision-making and lack of direction.
2. Inadequate Capital
Insufficient funds limit business operations, making it hard to cover startup costs,
operating expenses, and unexpected emergencies.
3. Poor Management
Business owners may lack the necessary managerial skills, such as financial
management, marketing, and human resources.
4. Lack of Market Research
Without proper market research, businesses may offer products or services that
are not needed, poorly priced, or wrongly targeted.
5. Poor Location
A bad business location, such as one with low foot traffic or poor accessibility,
negatively affects sales and customer acquisition.
6. Failure to Adapt
Businesses that fail to respond to market trends, consumer preferences, and
technological changes risk becoming obsolete.
7. Overexpansion
Expanding too quickly without adequate infrastructure or market demand can
strain resources and disrupt operations.
