OTE2601 Assignment 2 2025
Unique Number:
Due date: 15 June 2025
QUESTION 1
In South Africa and around the world, many small businesses face challenges that lead to
failure. Learning from successful entrepreneurs like Patrice Motsepe—who overcame
financial and strategic obstacles—can help young entrepreneurs avoid common mistakes.
Below are ten reasons why many businesses fail:
1. Incompetent Management
Many business owners lack essential management skills such as planning, marketing, and
staff management. This often results in poor decision-making, inefficient operations, and
weak leadership, which can cause the business to fail.
2. Lack of Experience
Some entrepreneurs start businesses without understanding the industry or how to manage
a business. Transitioning from being an employee to a manager requires different skills, and
DISCLAIMER & TERMS OF USE
Educational Aid: These study notes are intended to be used as educational resources and should not be seen as a
replacement for individual research, critical analysis, or professional consultation. Students are encouraged to perform
their own research and seek advice from their instructors or academic advisors for specific assignment guidelines.
Personal Responsibility: While every effort has been made to ensure the accuracy and reliability of the information in
these study notes, the seller does not guarantee the completeness or correctness of all content. The buyer is
responsible for verifying the accuracy of the information and exercising their own judgment when applying it to their
assignments.
Academic Integrity: It is essential for students to maintain academic integrity and follow their institution's policies
regarding plagiarism, citation, and referencing. These study notes should be used as learning tools and sources of
inspiration. Any direct reproduction of the content without proper citation and acknowledgment may be considered
academic misconduct.
Limited Liability: The seller shall not be liable for any direct or indirect damages, losses, or consequences arising from
the use of these notes. This includes, but is not limited to, poor academic performance, penalties, or any other negative
consequences resulting from the application or misuse of the information provided.
, For additional support +27 81 278 3372
QUESTION 1
In South Africa and around the world, many small businesses face challenges that
lead to failure. Learning from successful entrepreneurs like Patrice Motsepe—who
overcame financial and strategic obstacles—can help young entrepreneurs avoid
common mistakes. Below are ten reasons why many businesses fail:
1. Incompetent Management
Many business owners lack essential management skills such as planning,
marketing, and staff management. This often results in poor decision-making,
inefficient operations, and weak leadership, which can cause the business to fail.
2. Lack of Experience
Some entrepreneurs start businesses without understanding the industry or how to
manage a business. Transitioning from being an employee to a manager requires
different skills, and without this experience, they struggle to lead effectively.
3. Poor Financial Planning
New businesses often lack enough funds to survive the first few months. During this
time, sales may be low, but expenses continue. If entrepreneurs do not plan how to
cover their costs during this period, they may run out of money.
4. Poor Financial Control
Without proper financial controls, such as cash flow management and
recordkeeping, entrepreneurs may lose track of spending and income. Giving credit
to customers without clear terms also increases the risk of financial loss.
5. Inflexibility
Unique Number:
Due date: 15 June 2025
QUESTION 1
In South Africa and around the world, many small businesses face challenges that lead to
failure. Learning from successful entrepreneurs like Patrice Motsepe—who overcame
financial and strategic obstacles—can help young entrepreneurs avoid common mistakes.
Below are ten reasons why many businesses fail:
1. Incompetent Management
Many business owners lack essential management skills such as planning, marketing, and
staff management. This often results in poor decision-making, inefficient operations, and
weak leadership, which can cause the business to fail.
2. Lack of Experience
Some entrepreneurs start businesses without understanding the industry or how to manage
a business. Transitioning from being an employee to a manager requires different skills, and
DISCLAIMER & TERMS OF USE
Educational Aid: These study notes are intended to be used as educational resources and should not be seen as a
replacement for individual research, critical analysis, or professional consultation. Students are encouraged to perform
their own research and seek advice from their instructors or academic advisors for specific assignment guidelines.
Personal Responsibility: While every effort has been made to ensure the accuracy and reliability of the information in
these study notes, the seller does not guarantee the completeness or correctness of all content. The buyer is
responsible for verifying the accuracy of the information and exercising their own judgment when applying it to their
assignments.
Academic Integrity: It is essential for students to maintain academic integrity and follow their institution's policies
regarding plagiarism, citation, and referencing. These study notes should be used as learning tools and sources of
inspiration. Any direct reproduction of the content without proper citation and acknowledgment may be considered
academic misconduct.
Limited Liability: The seller shall not be liable for any direct or indirect damages, losses, or consequences arising from
the use of these notes. This includes, but is not limited to, poor academic performance, penalties, or any other negative
consequences resulting from the application or misuse of the information provided.
, For additional support +27 81 278 3372
QUESTION 1
In South Africa and around the world, many small businesses face challenges that
lead to failure. Learning from successful entrepreneurs like Patrice Motsepe—who
overcame financial and strategic obstacles—can help young entrepreneurs avoid
common mistakes. Below are ten reasons why many businesses fail:
1. Incompetent Management
Many business owners lack essential management skills such as planning,
marketing, and staff management. This often results in poor decision-making,
inefficient operations, and weak leadership, which can cause the business to fail.
2. Lack of Experience
Some entrepreneurs start businesses without understanding the industry or how to
manage a business. Transitioning from being an employee to a manager requires
different skills, and without this experience, they struggle to lead effectively.
3. Poor Financial Planning
New businesses often lack enough funds to survive the first few months. During this
time, sales may be low, but expenses continue. If entrepreneurs do not plan how to
cover their costs during this period, they may run out of money.
4. Poor Financial Control
Without proper financial controls, such as cash flow management and
recordkeeping, entrepreneurs may lose track of spending and income. Giving credit
to customers without clear terms also increases the risk of financial loss.
5. Inflexibility
