OTE2601
ASSIGNMENT 2
DUE DATE: 15 JUNE 2025
, OTE2601
Assignment 2 2025
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.
1. Incompetent Management
Many entrepreneurs have great business ideas but lack managerial skills. Poor decision-
making, inadequate planning, poor location choices, weak staff management, and the
absence of a marketing strategy are signs of weak management. Without solid leadership,
the business struggles to grow or even survive.
2. Lack of Experience
Transitioning from being an employee to managing a business is a major leap. Many new
business owners have limited experience in their industry and are not prepared for the
responsibilities of running a business, such as handling finances, operations, and
customer relations.
ASSIGNMENT 2
DUE DATE: 15 JUNE 2025
, OTE2601
Assignment 2 2025
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.
1. Incompetent Management
Many entrepreneurs have great business ideas but lack managerial skills. Poor decision-
making, inadequate planning, poor location choices, weak staff management, and the
absence of a marketing strategy are signs of weak management. Without solid leadership,
the business struggles to grow or even survive.
2. Lack of Experience
Transitioning from being an employee to managing a business is a major leap. Many new
business owners have limited experience in their industry and are not prepared for the
responsibilities of running a business, such as handling finances, operations, and
customer relations.
