, OTE2601 Assignment 2 (COMPLETE ANSWERS)
Semester 1 2025 - DUE 15 June 2025; 100%
TRUSTED Complete, trusted solutions and
explanations.
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]
The failure of many businesses, especially startups and small enterprises,
can be attributed to several interrelated factors. Understanding these
reasons is crucial for aspiring entrepreneurs, who can benefit from the
mentorship of experienced business leaders like Patrice Motsepe.
1. Lack of Planning and Strategy
Many entrepreneurs dive into business without a clear business plan or
long-term strategy. This includes poor market research, unclear goals,
and a lack of understanding of the competitive environment. Without
strategic direction, businesses struggle to adapt to changing market
conditions.
2. Poor Financial Management
Financial literacy is essential. Businesses often fail due to
mismanagement of funds—such as overspending, poor budgeting, not
tracking expenses, and failing to reinvest profits wisely. Inadequate
pricing strategies and lack of emergency reserves also contribute to cash
flow problems.
Semester 1 2025 - DUE 15 June 2025; 100%
TRUSTED Complete, trusted solutions and
explanations.
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]
The failure of many businesses, especially startups and small enterprises,
can be attributed to several interrelated factors. Understanding these
reasons is crucial for aspiring entrepreneurs, who can benefit from the
mentorship of experienced business leaders like Patrice Motsepe.
1. Lack of Planning and Strategy
Many entrepreneurs dive into business without a clear business plan or
long-term strategy. This includes poor market research, unclear goals,
and a lack of understanding of the competitive environment. Without
strategic direction, businesses struggle to adapt to changing market
conditions.
2. Poor Financial Management
Financial literacy is essential. Businesses often fail due to
mismanagement of funds—such as overspending, poor budgeting, not
tracking expenses, and failing to reinvest profits wisely. Inadequate
pricing strategies and lack of emergency reserves also contribute to cash
flow problems.
