THE BMZ ACADEMY
THE BMZ ACADEMY
053 8213
BMZ ACADEMY 061 262 1185/068 053 8213Page 1 of 17
, THE BMZ ACADEMY
Table of Contents
1. Based on the National Small Business Act, classify the size of enterprise that GI
represents by referring to its number of employees. (1) .................................................. 3
2. Identify and discuss the key challenges that Sakhe experienced both during the initial
stages of establishing his business and in the ongoing operation of his enterprise, as
presented in the case study. (7) ...................................................................................... 3
3. Drawing on the strategies outlined in your prescribed textbook, propose three
strategies that Sakhe could implement to address the challenges currently affecting his
business. (3) .................................................................................................................... 5
4. With reference to the concept of enterprise development and the various growth
strategies available to small businesses, describe the way Sakhe expanded his enterprise
in 2013. Support your response with specific evidence from the case study. (2) ............ 7
5. Provide a definition of bootstrapping as a financing method and illustrate with examples
from the case study how Sakhe applied this approach to fund his business. (5) ............ 8
6. Sakhe intends to diversify into sports management. Explain two (2) aspects of technical
feasibility he is currently exploring in preparation for this new venture. (4) ................... 10
7. Identify the funding agency that granted Sakhe a loan and explain the role that it plays
in supporting entrepreneurs. (3) .................................................................................... 11
8. Define the concept of resource sufficiency as per your prescribed textbook. Then,
identify the key resources Sakhe utilized in building his business and support your answer
with examples from the case study. (5) ......................................................................... 12
BMZ ACADEMY 061 262 1185/068 053 8213Page 2 of 17
, THE BMZ ACADEMY
1. Based on the National Small Business Act, classify the size of enterprise that GI
represents by referring to its number of employees. (1)
According to the National Small Business Act, Gwabeni Incorporated (GI) qualifies as a
very small enterprise because it employs seven full-time staff members, which is
more than the micro-enterprise threshold (fewer than five employees) but below the limit
of ten for very small enterprises.
2. Identify and discuss the key challenges that Sakhe experienced both during the
initial stages of establishing his business and in the ongoing operation of his
enterprise, as presented in the case study. (7)
Challenges in Establishing and Operating Gwabeni Incorporated
Entrepreneurship is often associated with significant opportunities but also considerable
challenges, particularly in developing economies such as South Africa. Sakhe Gwabeni,
founder of Gwabeni Incorporated (GI), faced numerous obstacles in both the
establishment and operation of his law firm. These challenges highlight the difficulties
many small businesses encounter, including limited managerial experience, resource
constraints, financing difficulties, competitive pressures, and regulatory burdens.
Challenges During the Initial Stages
Lack of Business Experience
One of Sakhe’s most pressing challenges was his limited business experience. Although
he had the legal expertise, having established GI only two years after his admission as
an attorney, he lacked the managerial skills required to run a business. Many small-
business owners face similar difficulties, as they often possess technical skills but lack
formal management training (Longenecker et al., 2017). This left him feeling ill-prepared
to compete with more experienced attorneys and to instill confidence in prospective
clients.
BMZ ACADEMY 061 262 1185/068 053 8213Page 3 of 17
THE BMZ ACADEMY
053 8213
BMZ ACADEMY 061 262 1185/068 053 8213Page 1 of 17
, THE BMZ ACADEMY
Table of Contents
1. Based on the National Small Business Act, classify the size of enterprise that GI
represents by referring to its number of employees. (1) .................................................. 3
2. Identify and discuss the key challenges that Sakhe experienced both during the initial
stages of establishing his business and in the ongoing operation of his enterprise, as
presented in the case study. (7) ...................................................................................... 3
3. Drawing on the strategies outlined in your prescribed textbook, propose three
strategies that Sakhe could implement to address the challenges currently affecting his
business. (3) .................................................................................................................... 5
4. With reference to the concept of enterprise development and the various growth
strategies available to small businesses, describe the way Sakhe expanded his enterprise
in 2013. Support your response with specific evidence from the case study. (2) ............ 7
5. Provide a definition of bootstrapping as a financing method and illustrate with examples
from the case study how Sakhe applied this approach to fund his business. (5) ............ 8
6. Sakhe intends to diversify into sports management. Explain two (2) aspects of technical
feasibility he is currently exploring in preparation for this new venture. (4) ................... 10
7. Identify the funding agency that granted Sakhe a loan and explain the role that it plays
in supporting entrepreneurs. (3) .................................................................................... 11
8. Define the concept of resource sufficiency as per your prescribed textbook. Then,
identify the key resources Sakhe utilized in building his business and support your answer
with examples from the case study. (5) ......................................................................... 12
BMZ ACADEMY 061 262 1185/068 053 8213Page 2 of 17
, THE BMZ ACADEMY
1. Based on the National Small Business Act, classify the size of enterprise that GI
represents by referring to its number of employees. (1)
According to the National Small Business Act, Gwabeni Incorporated (GI) qualifies as a
very small enterprise because it employs seven full-time staff members, which is
more than the micro-enterprise threshold (fewer than five employees) but below the limit
of ten for very small enterprises.
2. Identify and discuss the key challenges that Sakhe experienced both during the
initial stages of establishing his business and in the ongoing operation of his
enterprise, as presented in the case study. (7)
Challenges in Establishing and Operating Gwabeni Incorporated
Entrepreneurship is often associated with significant opportunities but also considerable
challenges, particularly in developing economies such as South Africa. Sakhe Gwabeni,
founder of Gwabeni Incorporated (GI), faced numerous obstacles in both the
establishment and operation of his law firm. These challenges highlight the difficulties
many small businesses encounter, including limited managerial experience, resource
constraints, financing difficulties, competitive pressures, and regulatory burdens.
Challenges During the Initial Stages
Lack of Business Experience
One of Sakhe’s most pressing challenges was his limited business experience. Although
he had the legal expertise, having established GI only two years after his admission as
an attorney, he lacked the managerial skills required to run a business. Many small-
business owners face similar difficulties, as they often possess technical skills but lack
formal management training (Longenecker et al., 2017). This left him feeling ill-prepared
to compete with more experienced attorneys and to instill confidence in prospective
clients.
BMZ ACADEMY 061 262 1185/068 053 8213Page 3 of 17
