, MNM2615 Assignment 1
Semester 2 2025
DUE 2025
Use this document as a guide and for references to answer your assignment
QUESTION 1
Describe the background of the chosen SME/SMME. Your answer should not
exceed half a page (5 marks for the background). (5)
The chosen SME is a locally owned retail business operating within the South
African township economy. It emerged in response to the growing need for
accessible consumer goods in underserved communities, where large retailers often
have limited presence. Like many African SMEs, it was established through
entrepreneurial initiative rather than large-scale capital investment, relying instead
on personal savings, family support, and community-based networks. The
enterprise reflects typical characteristics of small businesses in African markets:
informality in structure, adaptability to changing customer demands, and a close
relationship with its immediate consumer base.
Operating within a highly competitive and resource-constrained environment, the
business focuses on offering essential goods at affordable prices while maintaining
customer loyalty through personalized service. Challenges include limited access to
financing, fluctuating supply chains, and pressure from established retail chains.
Despite these constraints, the SME plays a critical role in local economic
development by generating employment, circulating income within the community,
and providing goods that meet both cultural and social needs. Its resilience and
responsiveness to consumer behavior illustrate how small enterprises remain central
to African market dynamics.
Semester 2 2025
DUE 2025
Use this document as a guide and for references to answer your assignment
QUESTION 1
Describe the background of the chosen SME/SMME. Your answer should not
exceed half a page (5 marks for the background). (5)
The chosen SME is a locally owned retail business operating within the South
African township economy. It emerged in response to the growing need for
accessible consumer goods in underserved communities, where large retailers often
have limited presence. Like many African SMEs, it was established through
entrepreneurial initiative rather than large-scale capital investment, relying instead
on personal savings, family support, and community-based networks. The
enterprise reflects typical characteristics of small businesses in African markets:
informality in structure, adaptability to changing customer demands, and a close
relationship with its immediate consumer base.
Operating within a highly competitive and resource-constrained environment, the
business focuses on offering essential goods at affordable prices while maintaining
customer loyalty through personalized service. Challenges include limited access to
financing, fluctuating supply chains, and pressure from established retail chains.
Despite these constraints, the SME plays a critical role in local economic
development by generating employment, circulating income within the community,
and providing goods that meet both cultural and social needs. Its resilience and
responsiveness to consumer behavior illustrate how small enterprises remain central
to African market dynamics.
