, OTE2601 Assignment 2 (COMPLETE ANSWERS)Semester 1 2025 - DUE 15
June 2025;100% CORRECT AND TRUSTED SOLUTIONS
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]
Starting and running a successful business in South Africa—or
anywhere in the world—requires more than just a good idea. While
mentorship from seasoned entrepreneurs like Patrice Motsepe can be
immensely valuable, many small and medium-sized businesses still fail
due to a combination of internal and external challenges. Below are the
key reasons why most businesses fail, each discussed in detail:
1. Lack of Proper Planning and Strategy
Many entrepreneurs jump into business without a detailed business plan.
A business plan outlines the vision, mission, goals, target market,
competitive analysis, financial projections, and marketing strategies.
Without it, businesses operate blindly, often leading to poor decision-
making. Failing to plan is essentially planning to fail. Entrepreneurs may
not anticipate changes in the market, customer needs, or supply chain
issues, resulting in a reactive rather than proactive approach.
2. Poor Financial Management
Inadequate control over finances is a leading cause of business failure.
This includes:
Mismanagement of cash flow (e.g., not having enough working
capital to cover daily operations)
Overspending on non-essential items
June 2025;100% CORRECT AND TRUSTED SOLUTIONS
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]
Starting and running a successful business in South Africa—or
anywhere in the world—requires more than just a good idea. While
mentorship from seasoned entrepreneurs like Patrice Motsepe can be
immensely valuable, many small and medium-sized businesses still fail
due to a combination of internal and external challenges. Below are the
key reasons why most businesses fail, each discussed in detail:
1. Lack of Proper Planning and Strategy
Many entrepreneurs jump into business without a detailed business plan.
A business plan outlines the vision, mission, goals, target market,
competitive analysis, financial projections, and marketing strategies.
Without it, businesses operate blindly, often leading to poor decision-
making. Failing to plan is essentially planning to fail. Entrepreneurs may
not anticipate changes in the market, customer needs, or supply chain
issues, resulting in a reactive rather than proactive approach.
2. Poor Financial Management
Inadequate control over finances is a leading cause of business failure.
This includes:
Mismanagement of cash flow (e.g., not having enough working
capital to cover daily operations)
Overspending on non-essential items
