MNE3701
ASSIGNMENT 2
SEMESTER 2 2026
UNIQUE NO.
DUE DATE: 30 SEPTEMBER 2026
, Entrepreneurship and Small Business Management - MNE3701
Assignment 2 Semester 2 2026
QUESTION 1: USING REAL-WORLD EXAMPLES, CRITICALLY EXPLAIN HOW
YOU WOULD FUND YOUR BUSINESS. JUSTIFY WHY YOU WOULD SELECT
CERTAIN FINANCING OPTIONS RATHER THAN ALTERNATIVE ONES.
(10 MARKS)
Introduction
Finance is one of the most important resources required when starting and developing a
small business. An entrepreneur needs finance to acquire equipment, purchase raw
materials, pay employees, market the business and maintain sufficient working capital.
However, obtaining finance is not simply a question of finding the largest possible
amount of money. The entrepreneur must select sources of finance that are appropriate
for the size, stage, risk and cash-flow requirements of the business.
For this assignment, I would establish a South African small business called EcoClean
SA, which would manufacture and distribute affordable environmentally friendly
household and institutional cleaning products. The business would initially operate in
Gauteng and sell to households, small businesses, guesthouses, restaurants and
offices. My financing strategy would combine internal finance with carefully selected
external finance.
1.1 Personal savings
My first source of finance would be personal savings. I would use approximately
R80,000 of my own savings to cover initial expenses such as registration, basic
production equipment, raw materials, packaging, branding and initial marketing.
Personal savings would be appropriate because the business would not immediately
have to make loan repayments or pay interest. It would also allow me to retain full
ASSIGNMENT 2
SEMESTER 2 2026
UNIQUE NO.
DUE DATE: 30 SEPTEMBER 2026
, Entrepreneurship and Small Business Management - MNE3701
Assignment 2 Semester 2 2026
QUESTION 1: USING REAL-WORLD EXAMPLES, CRITICALLY EXPLAIN HOW
YOU WOULD FUND YOUR BUSINESS. JUSTIFY WHY YOU WOULD SELECT
CERTAIN FINANCING OPTIONS RATHER THAN ALTERNATIVE ONES.
(10 MARKS)
Introduction
Finance is one of the most important resources required when starting and developing a
small business. An entrepreneur needs finance to acquire equipment, purchase raw
materials, pay employees, market the business and maintain sufficient working capital.
However, obtaining finance is not simply a question of finding the largest possible
amount of money. The entrepreneur must select sources of finance that are appropriate
for the size, stage, risk and cash-flow requirements of the business.
For this assignment, I would establish a South African small business called EcoClean
SA, which would manufacture and distribute affordable environmentally friendly
household and institutional cleaning products. The business would initially operate in
Gauteng and sell to households, small businesses, guesthouses, restaurants and
offices. My financing strategy would combine internal finance with carefully selected
external finance.
1.1 Personal savings
My first source of finance would be personal savings. I would use approximately
R80,000 of my own savings to cover initial expenses such as registration, basic
production equipment, raw materials, packaging, branding and initial marketing.
Personal savings would be appropriate because the business would not immediately
have to make loan repayments or pay interest. It would also allow me to retain full
