SECTION A

Read the scenario below and answer ALL the questions in this section.

In a local township, a group of friends has recently started a small business, offering handmade crafts and artisanal

products. Despite their initial enthusiasm, they are encountering several challenges that threaten the sustainability of their

venture. Additionally, the entrepreneurs are struggling with the transition from being craftsmen to effective business

managers.

QUESTION $1$

$(20$ Marks$)$

As a consultant specializing in SMMEs management, discuss the common reasons for the failure of Small,

Medium, and Micro Enterprises $($SMMEs$).$ Additionally, provide recommendations on how these challenges

could be addressed to improve the sustainability of the venture.

QUESTION $2$

$(20$ Marks$)$

Discuss the important personal qualities that an entrepreneur should possess in order to successfully

navigate the challenges faced by the group of friends in the scenario provided. In your response, identify

and explain FIVE $(5)$ key qualities and provide examples of how each quality could be applied in the context

of transitioning from craftsmen to effective business managers in their small business venture.

SECTION B

$[60$ MARKS$]$

Answer ANY THREE $(3)$ questions in this section.

QUESTION $3$

$(20$ Marks$)$

When considering starting a business enterprise, there are numerous factors to consider that can

significantly influence the decision$-$making process. Discuss the factors that would affect your choice of

business enterprise, providing practical examples to support your answer.

QUESTION $4$

A farmer wants to start a new business and produce organic vegetables for the local community. To do so$,$

the farmer needs to understand the different factors of production that are necessary for the business to

operate successfully. What are the FOUR $(4)$ main factors of production required for the farmer to produce

organic vegetables for the local community, and how does each factor contribute to the production process?

QUESTION $5$

$(20$ Marks$)$

In the context of Small, Medium, and Micro Enterprises $($SMMEs$),$ discuss how each of the four functions of

management $($planning$,$ organizing, leading, and controlling$)$ can contribute to the success and sustainability

of such businesses. Provide examples to illustrate your points.