[TYPE THE COMPANY NAME]
OTE2601
Assignment 2
(COMPLETE
ANSWERS) 2025
- DUE 15 June
2025
NO PLAGIARISM
[Pick the date]
,[Type the abstract of the document here. The abstract is typically a short summary of the contents of
the document. Type the abstract of the document here. The abstract is typically a short summary of
the contents of the document.]
, Exam (elaborations)
OTE2601 Assignment 2 (COMPLETE
ANSWERS) 2025 - DUE 15 June 2025
Course
Orientation to teaching Economic (OTE2601)
Institution
University Of South Africa (Unisa)
Book
Teaching Economics
OTE2601 Assignment 2 (COMPLETE ANSWERS) 2025 - DUE 15 June 2025;
100% TRUSTED Complete, trusted solutions and explanations.. Ensure your
success with us. ..
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]
Patrice Motsepe, a prominent South African billionaire mining magnate and entrepreneur,
embodies the spirit of overcoming challenges in the business world. His journey from a humble
background to immense success makes him an ideal mentor for young entrepreneurs.
Understanding why most businesses fail is crucial for aspiring entrepreneurs, as it allows them to
identify potential pitfalls and strategically plan to avoid them.
Here are the key reasons why most businesses fail, drawing from general business principles and
specific challenges often faced in a South African context:
I. Financial Mismanagement and Lack of Capital:
Insufficient Funding (Under-capitalization): Many businesses start with insufficient
capital to cover initial operating costs, unexpected expenses, or to sustain operations until
profitability. This leads to premature cash flow crises.
Poor Cash Flow Management: Even profitable businesses can fail due to poor
management of incoming and outgoing cash. This includes late invoicing, ineffective
collection of receivables, holding excessive inventory, or not managing payables
strategically.
Lack of Financial Expertise and Budgeting: Many entrepreneurs lack basic financial
literacy, leading to poor budgeting, inability to track expenses, and failure to understand
crucial financial statements. This makes it impossible to make informed financial
decisions.
OTE2601
Assignment 2
(COMPLETE
ANSWERS) 2025
- DUE 15 June
2025
NO PLAGIARISM
[Pick the date]
,[Type the abstract of the document here. The abstract is typically a short summary of the contents of
the document. Type the abstract of the document here. The abstract is typically a short summary of
the contents of the document.]
, Exam (elaborations)
OTE2601 Assignment 2 (COMPLETE
ANSWERS) 2025 - DUE 15 June 2025
Course
Orientation to teaching Economic (OTE2601)
Institution
University Of South Africa (Unisa)
Book
Teaching Economics
OTE2601 Assignment 2 (COMPLETE ANSWERS) 2025 - DUE 15 June 2025;
100% TRUSTED Complete, trusted solutions and explanations.. Ensure your
success with us. ..
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]
Patrice Motsepe, a prominent South African billionaire mining magnate and entrepreneur,
embodies the spirit of overcoming challenges in the business world. His journey from a humble
background to immense success makes him an ideal mentor for young entrepreneurs.
Understanding why most businesses fail is crucial for aspiring entrepreneurs, as it allows them to
identify potential pitfalls and strategically plan to avoid them.
Here are the key reasons why most businesses fail, drawing from general business principles and
specific challenges often faced in a South African context:
I. Financial Mismanagement and Lack of Capital:
Insufficient Funding (Under-capitalization): Many businesses start with insufficient
capital to cover initial operating costs, unexpected expenses, or to sustain operations until
profitability. This leads to premature cash flow crises.
Poor Cash Flow Management: Even profitable businesses can fail due to poor
management of incoming and outgoing cash. This includes late invoicing, ineffective
collection of receivables, holding excessive inventory, or not managing payables
strategically.
Lack of Financial Expertise and Budgeting: Many entrepreneurs lack basic financial
literacy, leading to poor budgeting, inability to track expenses, and failure to understand
crucial financial statements. This makes it impossible to make informed financial
decisions.
