,OTE2601 Assignment 2 SEMESTER 1 (COMPLETE
ANSWERS) 2025 - DUE 15 June 2025;100% trusted,
comprehensive and complete reliable solution with clear
explanation
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. [20]
A successful entrepreneur like Patrice Motsepe can play a
significant role in mentoring young business owners to avoid
common pitfalls that lead to failure. Despite enthusiasm and
innovation, many businesses fail within their first few years. The
reasons for this are diverse and often interrelated. Below are
some of the key reasons:
1. Lack of Proper Planning (3 marks)
Many entrepreneurs fail to develop a comprehensive business
plan. A good plan outlines the business vision, target market,
competitive analysis, marketing strategy, financial projections,
and operational plans.
Without this roadmap, businesses struggle to adapt or scale.
, Planning helps foresee potential challenges and guides
decision-making.
2. Inadequate Financial Management (3 marks)
Financial mismanagement is a leading cause of failure.
Entrepreneurs often:
Miscalculate startup costs or cash flow needs.
Mix personal and business finances.
Fail to maintain proper accounting records.
Overborrow or misuse funds.
A sound understanding of budgeting, pricing, and forecasting
is essential for sustainability.
3. Poor Market Research (2 marks)
Some entrepreneurs launch businesses without understanding:
Customer needs
Market demand
Competitors
As a result, they create products or services that don't solve real
problems or are already available in better or cheaper forms.
Market fit is crucial for survival.
ANSWERS) 2025 - DUE 15 June 2025;100% trusted,
comprehensive and complete reliable solution with clear
explanation
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. [20]
A successful entrepreneur like Patrice Motsepe can play a
significant role in mentoring young business owners to avoid
common pitfalls that lead to failure. Despite enthusiasm and
innovation, many businesses fail within their first few years. The
reasons for this are diverse and often interrelated. Below are
some of the key reasons:
1. Lack of Proper Planning (3 marks)
Many entrepreneurs fail to develop a comprehensive business
plan. A good plan outlines the business vision, target market,
competitive analysis, marketing strategy, financial projections,
and operational plans.
Without this roadmap, businesses struggle to adapt or scale.
, Planning helps foresee potential challenges and guides
decision-making.
2. Inadequate Financial Management (3 marks)
Financial mismanagement is a leading cause of failure.
Entrepreneurs often:
Miscalculate startup costs or cash flow needs.
Mix personal and business finances.
Fail to maintain proper accounting records.
Overborrow or misuse funds.
A sound understanding of budgeting, pricing, and forecasting
is essential for sustainability.
3. Poor Market Research (2 marks)
Some entrepreneurs launch businesses without understanding:
Customer needs
Market demand
Competitors
As a result, they create products or services that don't solve real
problems or are already available in better or cheaper forms.
Market fit is crucial for survival.
