ETP3701/101/3/2018

Tutorial Letter 101/3/2018

Entrepreneurship IIIA
ETP3701

Semesters 1 and 2

Department of Entrepreneurship, Supply

Chain, Transport, Tourism & Logistics
Management

This tutorial letter contains important information

about your module.

BARCODE

Open Rubric
 CONTENTS

Page

1 INTRODUCTION .......................................................................................................................... 3
2 PURPOSE AND OUTCOMES ...................................................................................................... 3
2.1 Purpose ........................................................................................................................................ 3
2.2 Outcomes ..................................................................................................................................... 3
3 LECTURER(S) AND CONTACT DETAILS ................................................................................... 4
3.1 Lecturer(s) .................................................................................................................................... 4
3.2 Department ................................................................................................................................... 4
3.3 University ...................................................................................................................................... 5
4 RESOURCES ............................................................................................................................... 6
4.1 Prescribed books .......................................................................................................................... 6
4.2 Recommended books ................................................................................................................... 6
4.3 Electronic reserves (e-reserves) ................................................................................................... 6
4.4 Library services and resources information ................................................................................... 6
5 STUDENT SUPPORT SERVICES ................................................................................................ 6
6 STUDY PLAN ............................................................................................................................... 7
7 PRACTICAL WORK AND WORK-INTEGRATED LEARNING ..................................................... 7
8 ASSESSMENT ............................................................................................................................. 7
8.1 Assessment criteria....................................................................................................................... 7
8.2 Assessment plan .......................................................................................................................... 7
8.3 Assignment numbers .................................................................................................................... 8
8.3.1 General assignment numbers ....................................................................................................... 8
8.3.2 Unique assignment numbers ....................................................................................................... 7
8.4 Assignment due dates ………………………………………………………………………………… …8
8.5 Submission of assignments .......................................................................................................... 8
8.6 The assignments .......................................................................................................................... 9
8.7 Other assessment methods ........................................................................................................ 11
8.8 The examination ......................................................................................................................... 11
9 FREQUENTLY ASKED QUESTIONS ........................................................................................ 12
10 SOURCES CONSULTED ........................................................................................................... 12
11 IN CLOSING ............................................................................................................................... 12
12 ADDENDUM ............................................................................................................................... 13

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 ETP3701/101/3/2018

Dear Student

1 INTRODUCTION
It is our pleasure to welcome you to this module in Entrepreneurship IIIA (first module) and trust
that you will find it a rewarding and interesting area of study. We shall do our best to make your
study of this module successful. You will be well on your way to success if you start studying
early in the year and resolve to do the assignments properly.
You will receive a number of tutorial letters during the year. A tutorial letter is our way of
communicating with you about teaching, learning and assessment.
Tutorial Letter 101 contains important information about the scheme of work, resources and
assignments for this module. We urge you to read it carefully and to keep it at hand when
working through the study material, preparing the assignments, preparing for the examination
and addressing questions to your lecturers.
In Tutorial Letter 101, you will find the assignments and assessment criteria as well as
instructions on the preparation and submission of the assignments. This tutorial letter also
provides all the information you need with regard to the prescribed study material and other
resources and how to obtain it. Please study this information carefully and make sure that you
obtain the prescribed material as soon as possible.
We have also included certain general and administrative information about this module. Please
study this section of the tutorial letter carefully.
Right from the start we would like to point out that you must read all the tutorial letters you
receive during the year immediately and carefully, as they always contain important, and
sometimes, urgent information.
Some of this tutorial matter may not be available when you register. Tutorial matter that is not
available when you register will be posted to you as soon as possible, but all study material is
available on myUnisa.

2 PURPOSE AND OUTCOMES

2.1 Purpose
The purpose of this module is to demonstrate the importance of a strategic approach to
entrepreneurship. Furthermore, it will help you to acquire a basic understanding of
entrepreneurship and to develop an understanding of general entrepreneurship concepts. This
module will prepare you to start your own business in South Africa. It will also provide a
foundation for all later modules in entrepreneurship.
2.2 Outcomes
After working through the various topics of this module, you should be able to
• discuss entrepreneurship in a strategic management context
• discuss entrepreneurship in a South African context
• identify the requirements for becoming a successful entrepreneur
• explain the entrepreneurial process and how to start a business
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This module is based on the outcomes-based approach to education and training. You will
therefore find a number of learning outcomes at the beginning of each topic. These learning
outcomes guide you through the learning material and inform you of what you may be expected
to demonstrate in the assessment process, that is, in the assignments and the examination.

3 LECTURER(S) AND CONTACT DETAILS

3.1 Lecturer(s)
The names and contact details of the lectures for this module are as follows:

Primary Lecturer
Ms WT Sami samiwt@unisa.ac.za

Secondary Lecturer
Mrs MS Radebe radebes@unisa.ac.za

Entrepreneurship Section Coordinator

Ms NM Mmako mmakonm@unisa.ac.za

You may want to write to us. Letters should be sent to:

Postal address The Module Leader (ETP3701)

Department of Entrepreneurship, Supply
Chain, Transport, Tourism & Logistics
Management
P O Box 392
UNISA
0003

Only queries that are about the content of this module – not administrative queries –should
be directed to the primary lecturer.
LECTURER AVAILABILITY
The lecturer for this module will be available to take phone calls on academic matters and/or to
attend to students who may prefer to visit personally for academic engagement. However, the
days and times of lecturer’s availability will be communicated in the module page on myUnisa.
These days and times are subject to change from time to time in order to accommodate the
lecturer’s work schedule and other commitments. The changes on the days and times will be
communicated by the lecturer in advance through the announcement option on myUnisa as
and when this happen. Students are advised to check the module page on myUnisa before
making phone calls or visiting the lecturer’s office for academic enquiries/engagements.
Please have your study material with you when you contact us.
3.2 Department
The details of the Departmental Help Desk are as follows: DESTTL@unisa.ac.za.

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 ETP3701/101/3/2018

3.3 University
Any enquiries about administrative matters should be addressed to the section concerned with
your problem. Consult the Study @ Unisa brochure in this regard.

The contact details are as follows:

Unisa website http://www.unisa.ac.za & http://mobi.unisa.ac.za

All student-related information is now available on the new Unisa corporate
website in both web and mobi formats.
myUnisa https://mu.unisa.ac.za/portal & https://my.unisa.ac.za/portal/pda
Students can access their own information via myUnisa website or mobi
site.
E-mail info@unisa.ac.za
Students may send an e-mail to info@unisa.ac.za for information on how to
contact Unisa via e-mail.
SMS 32695 – only for students in South Africa
Students may send an SMS to 32695 for more information on how to
contact Unisa via SMS. The sender will receive an auto response SMS with
the various SMS options. The cost to the student per SMS is R1.00.
Fax 012 429 4150
Students will be able to fax their enquiries to this number, whereafter it will
be distributed to and processes by the relevant department.
Physical University of South Africa
address Preller Street
Muckleneuk
Pretoria
Postal address University of South Africa
PO Box 392
UNISA
0003
Assignments Short SMS code: 43584
E-mail address: Assign@unisa.ac.za
Students may send an SMS or e-mail to either of these contacts to enquiries
about assignments (e.g. whether or not the University has received your
assignment or the date on which an assignment was returned to you).
Assignments enquiries must not be addressed to the lecturer but the
University.

Always include your student number when corresponding with the University.

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4 RESOURCES
4.1 Prescribed books
You cannot complete this module successfully without the prescribed book. This book is not
included in your study pack and you need to buy it. Your prescribed textbook for this module for
this year is:

Nieman, G & Niewenhuizen, C (eds). 2014. Entrepreneurship, A South African Perspective.

3rd edition. Pretoria: Van Schaik. (Chapters 1–9)

Please consult the list of official booksellers and their addresses listed in Study @ Unisa. If you
have any difficulties in obtaining books from these bookshops, please contact the Prescribed
Book Section at telephone (012) 429 4152 or e-mail vospresc@unisa.ac.za
4.2 Recommended books
Thera are no recommended textbooks for this module.
4.3 Electronic reserves (e-reserves)
There are no electronic reserves for this module.
4.4 Library services and resources information
For brief information, go to www.unisa.ac.za/brochures/studies

For detailed information, go to http://www.unisa.ac.za/library. For research support and services

of personal librarians, click on "Research support".

The library has compiled a number of library guides:

 finding recommended reading in the print collection and e-reserves –

http://libguides.unisa.ac.za/request/undergrad
 requesting material – http://libguides.unisa.ac.za/request/request
 postgraduate information services – http://libguides.unisa.ac.za/request/postgrad
 finding, obtaining and using library resources and tools to assist in doing research –
http://libguides.unisa.ac.za/Research_Skills
 how to contact the library/finding us on social media/frequently asked questions –
http://libguides.unisa.ac.za/ask

5 STUDENT SUPPORT SERVICES

For information on the various student support systems and services available at Unisa (e.g.
student counselling, tutorial classes, language support), please consult the Study @ Unisa
brochure.
Predatory providers of classes and examination support
Please be aware of the existence of multiple fraudulent and predatory providers of classes and
examination guidance to Unisa students. Please note that Unisa do not have agreements with
any of these agencies/schools/colleges to provide tuition or support to our students. Unisa also
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 ETP3701/101/3/2018

do not provide these predators with study material, guidelines or your contact information.
These providers may not have the necessary expertise to assist you and often charge
exorbitant fees. If you receive an invitation from any agency or College, it is best to confirm with
your lecturer if the provider is a legitimate Unisa partner.

6 STUDY PLAN
The study plan is such that at least one learning unit should be completed per week.

7 PRACTICAL WORK AND WORK-INTEGRATED LEARNING

There are no practicals for this module.

8 ASSESSMENT
8.1 Assessment criteria
Assessment criteria are explained in this document and in various tutorial matters. Please
ensure that you fully understand what is required from you in both your formative and
summative assessments.
8.2 Assessment plan
Unlike residential universities, Unisa does not require students to write tests to gain admission
to the examination. Assignments are seen as part of the learning material for this module. As
you do the assignments, study the reading texts, consult other resources, discuss the work with
fellow students or tutors or do research, you are actively engaged in learning. Looking at the
assessment criteria given for each assignment will help you to understand what is required of
you more clearly.
Three assignments are set for this module. Both Assignments 01 and 02 for ETP3701 are thus
compulsory assignments. You must submit ASSIGNMENT 01 in order to obtain admission to
the examination.
Admission will be obtained by submitting the assignment and not on the strength of the
marks you obtain for it. Failure to submit Assignment 01 will mean that you will not be admitted
to the examination, regardless of whether you submit Assignment 02. Assignment 03 is a
self-assessment assignment and may not be submitted to the University for Assessment.
Assignment 01 consists of multiple-choice questions, while Assignment 02 and 03 contain
essay questions and case studies.
You will receive feedback on both Assignments 01 and 02 (via myUnisa) in Tutorial Letter
ETP3701/201/3/2018. As soon as you have received the commentaries, please check your
answers. The assignments and the commentaries on these ETP3701/101 assignments
constitute an important part of your learning and should help you to be better prepared for the
examination.
The commentary on the self-evaluation assignment will be included in the same tutorial letter
(ETP3701/201/3/2018). This will enable you to mark your assignment as soon as you have
completed it.

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8.3 Assignment numbers
8.3.1 General assignment numbers
Assignments are numbered consecutively per module, and per semester starting from 01. The
closing dates for the submission of the assignments are:

2018 First Semester Assignments

Assignment Due Date Unique Number

01 Compulsory (Multiple- 09 March 2018 896540

choice)

02 Compulsory (Written) 09 April 2018 728726

2018 Second Semester Assignments

Assignment Due Date Unique Number

01 Compulsory (Multiple- 24 August 2018 701401

choice)

02 Compulsory (Written) 14 September 2018 753972

8.3.2 Unique assignment numbers

Both Assignments 1 and 2 have been allocated unique assignment numbers. These numbers
must be used on all correspondences regarding assignments. Please ensure that you have
completed the correct assignment and also that you have completed the correct unique number.
No special arrangements will be made if you fail to complete the correct assignment.
8.4 Assignment due dates
VERY IMPORTANT: Please ensure that your assignments reach us on or before the relevant
due dates. You will not be admitted to the examination if Assignment 01 is submitted later than
the due date. Please do not phone us with a request to be admitted to the examination if
you have not submitted Assignment 01 or you submitted it after the due date.
8.5 Submission of assignments
You may submit written assignments either by post or electronically via myUnisa. Assignments
may not be submitted by fax or e-mail. However, we highly recommend that you submit via
myUnisa.
For detailed information and requirements as far as assignments are concerned, see the
brochure Study @ Unisa that you received with your study material.
Do not contact your lecturer for administrative information on your assignments. For any
administrative information on your assignments contact the relevant administrative sections.
PLEASE KEEP A COPY OF YOUR ASSIGNMENT IN A SAFE PLACE.

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 ETP3701/101/3/2018

For detailed information on assignments, please refer to the Study @ Unisa brochure, which
you received with your study package.
Also, MCQ assignments may be submitted in one of three ways: either via the internet
using myUnisa or via cellular phone or by means of a mark-reading card.
To submit an assignment via myUnisa:
 Go to myUnisa at https://my.unisa.ac.za.
 Log in with your student number and password.
 Select the module.
 Click on assignments in the left-hand menu.
 Click on the assignment number you want to submit.
 Follow the instructions on the screen.
To submit an assignment by means of an sms from your cellular phone:
 Download and install the Unisa Mobile application from
https://my.unisa.ac.za/portal/pda.
 Install and start the application on your phone.
 Select the “MCQ Assignment” option.
 Log in with your myUnisa credentials.
 Select your module.
 Select the appropriate unique assignment number.
 Select appropriate answers to the assignment questions.
 Send your answers.
 Receive immediate onscreen confirmation.
 Only if you do not have access to the internet should you submit your
assignment by means of a mark-reading sheet and mail it to Unisa. If you are
using a mark-reading sheet, remember to:
 use an HB pencil
 indicate your student number and the above-mentioned unique number on the
mark-reading sheet
 follow the instructions for completing mark-reading sheets. Incomplete mark-
reading sheets will be returned to you unmarked.
 Submit the assignment in good time. It must have reached the Unisa Main
Campus by the above-mentioned date. Otherwise it might not be in time to be
marked by the Assignment Section.

8.6 The assignments

The main purpose of the assignments is to encourage you to study the prescribed book, to read
certain sections over and over again, and to think about the tutorial matter in terms of its
practical application. With these remarks in mind, the questions may sometimes be difficult, and
some may seem ambiguous. The idea is not to try to trick you or catch you out, but to make you
think.
Formative assessment for ETP3701 takes place through a year mark system. Both
Assignments 01 and 02 are compulsory and you will be allocated a separate mark for each of
these assignments. The marks of the two assignments will be taken to calculate your year mark.

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Your final assessment mark for this module will therefore be a combination of the assignment
mark and the examination mark.
The year mark (the weighted mark of the two assignments) will contribute a maximum of 20% to
the final assessment mark for the module, while the examination mark will contribute 80%.
Assignments 01 and 02 carry a weight of 10% and 90% respectively towards the year mark.
Irrespective of the year mark obtained, a subminimum of 40% must be obtained in the
examination. You will therefore not pass the module if your examination mark is less than 40%.
In addition, if your examination mark is less than 40%, your year mark will not be used in the
calculation of your final assessment mark. The examination mark will be the final assessment
mark in this instance.
Please study the following examples to see how the assignment mark will contribute to the final
assessment mark:
Example 1:
If you obtain 50% in Assignment 01, this mark is multiplied by 0.1 to give you 5% towards your
year mark. If you obtain 60% in Assignment 02, this mark is multiplied by 0.9 to give you 54%
towards your year mark. The total mark of Assignments 01 and 02 (5% plus 54%) will constitute
your final year mark of 59%. This figure is then calculated to give you a weight of 11.8% year
mark (59 x 0.2%). If then you obtain 50% in the examination, this figure is then multiplied by 0.8
to give you a weight of 40% examination mark. The two results are then combined to give a final
assessment mark of 51.8% (11.8% + 40%) for the module.

Assessment % Obtained Multiplier Mark

Assignment 01 50% 0.1 5%

Assignment 02 60% 0.9 54%

Year mark (weighted mark) 59% 0.2 11.8%

Examination mark 50% 0.8 40%

Final assessment mark 51.8%

Example 2: No marks for assignments; to pass need 62% in the examination

If you get an assignment mark of 0% for both assignments, you would have to obtain 62% in the
examination to pass as this percentage is multiplied by 0.8, which equals 49.6% (50%), your
final assessment mark.

Assessment % Obtained Multiplier Mark

Assignment 01 0%

Assignment 02 0%

Year mark (weighted mark) 0% 0.2 0%

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 ETP3701/101/3/2018

Examination mark 62% 0.8 49.6%

Final assessment mark 50%

Example 3: Examination mark below sub-minimum of 40%; year mark does not count

Assessment % Obtained Multiplier Mark

Assignment 01 100%

Assignment 02 100%

Year mark (weighted mark) 0.2 0%

Examination mark 39% 0.8 31.2%

Final assessment mark 31%

8.7 Other assessment methods
There are no other assessment methods for this module.
8.8 The examination
The examination is your opportunity to demonstrate that you have achieved the outcomes of
this module. Use your Study @ Unisa brochure for general examination guidelines and
examination preparation guidelines.
You must submit ASSIGNMENT 01 in order to obtain admission to the examination. Admission
will be obtained by submitting the assignment and not on the strength of the marks you obtain
for it. Failure to submit Assignment 01 will mean that you will not be admitted to the
examination, regardless of whether you submit Assignment 02.
This module is offered in two semester periods. This means that if you registered at the
beginning of the year, you will write the examination in May/June 2018. Should you qualify for
supplementary examination for this module, you will only write it October/November 2018. If you
registered at the middle of the year, you will only write the examination in October/November
2018. Please note that the supplementary examination thereof will be written in May/June 2019.
The Examination Section will provide you with the exact information regarding the examination
in general, examination venues, examination dates and examination times to that effect.
The duration of the examination paper is two hours. The examination paper is set in English.
The question paper counts 70 marks and consists of two sections. Section A (30 marks) is
compulsory and the questions will be based on a case study. Section B (40 marks) will consist
of three questions, of which you will have to do two. Multiple-choice questions will not be asked
in the examination paper. Therefore, the marks that you obtain for the compulsory Assignment
01 is not an indication of your level of understanding of the study material or what marks you
can expect in the examination.
Limited copies of old examination papers are placed on myUnisa by the Examination
Department. Please note that these examination papers are provided to give you an idea of the
expected format of your examination and you should not regard it as an indication of questions
that are likely to appear in the examination you will write.

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Please refer to the specific examination guidelines provided in this tutorial letters as the format
of examination papers may vary from semester to semester. No further previous examination
papers will be provided, nor can we provide you with memoranda for the example papers
provided.
Please do not contact your lecturers for copies of previous examination papers or the availability
of examination papers on myUnisa, as this is a function performed by the Examination
Department.
The Study @ Unisa brochure contains important information on the final year concession
procedure to assist students with one or two modules outstanding.
The Department of Examination Administration (DEA) will inform all students who qualify for a
final year (FI) concession per SMS/e-mail.
For this module, FI students have the option to be referred to the next formal examination
opportunity or to engage in an alternative method of assessment. For this module, the
alternative method of assessment is the submission of a portfolio of evidence.
More information on the alternative method of assessment will be communicated directly to the
qualifying students.
NB: Alternative methods of assessment are subject to stringent academic rules and processes
and should not be considered an easier option. Failure to meet the learning outcomes of the
module, through the alternative method of assessment, will result in a fail and you will need to
re-register for the outstanding module.

9 FREQUENTLY ASKED QUESTIONS

The Study @ Unisa brochure contains an A-Z guide of the most relevant study information.

10 SOURCES CONSULTED
Nieman, G & Niewenhuizen, C (eds). 2014. Entrepreneurship, A South African Perspective. 3rd
edition. Pretoria: Van Schaik.
Guidelines for Tutorial Letter 101

11 IN CLOSING
You are now ready to begin with this module. We trust that you will approach your studies with
enthusiasm and commitment. You are welcome to contact us should you experience any
problems with your studies. Should you apply yourself to your studies, it is more likely that you
will attain success with your studies.
Kind regards,
Entrepreneurship III Lecturers
School of Public and Operations Management
College of Economic and Management Sciences
University of South Africa

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12 ADDENDUM
Please note that the next sections contain the 2018 assignments (Assignments 01 & 02) for
both the first and second semester periods.

COMPULSORY ASSIGNMENT 01: FIRST SEMESTER 2018

Assignment 1 (Multiple-choice)

Due date Unique number

09 March 2018 896540

Please note that this assignment has 20 questions.

This assignment consists of twenty (20) multiple-choice questions and must be completed on a
mark-reading sheet, or you can submit it via myUnisa. Your prescribed book will help you with
this assignment.

1. Starting a business for the sole purpose of furthering personal goals and ensuring security
best describes a/an …
1 entrepreneurial venture.
2 small business.
3 entrepreneur.
4 opportunity.

2. Entrepreneurship can be found at various levels of entrepreneurial sophistication based

on their entrepreneurial activities. An entrepreneur selling crafts on the side of the road
along with ten other entrepreneurs selling the exact same thing at the same price best
describes a … entrepreneur.
1 micro-
2 basic
3 pre-
4 subsistence

3. Goffee and Scase (1985) distinguish women entrepreneurs on the basis of two criteria,
namely attachment to entrepreneurial ideas and acceptance of traditional gender roles.
Women business owners who are highly entrepreneurial but not committed to gender
roles may be described as …
1 innovative
2 domestic
3 radical
4 traditional

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 4. The window of opportunity describes the time period available to create new ventures.
In a holistic view of the window of opportunity, when an entrepreneur enters the
market and starts with business activity this is regarded as … the window.
1 seeing.
2 locating.
3 measuring.
4 opening.

5. There are three primary reasons for compiling a business plan, namely to obtain
funding, to serve an internal purpose and to ...
1 reduce risk.
2 reduce loss.
3 increase profit.
4 increase growth.

6. Individuals with innovative solutions to society’s most pressing social problems are
referred to as ... entrepreneurs.
1 technology
2 youth
3 tourism
4 social

7. Which of the following individuals are not entrepreneurs?

a) Martha and Sue buy old books which they resell at their book stall.
b) Johan resigns from his job as a teacher to manage his uncle’s restaurant.
c) Suzy turns part of her home into a day-care centre.
d) Brian sells snacks at a soccer match. He gets paid R20 an hour.

1 a and b
2 c and d
3 b and d
4 a and d
8. A number of myths and misconceptions surround creativity. Which one of the following
is a myth/misconception about creativity?
1 Creativity is an innate skill and cannot be acquired through training.
2 Artists are not the only creative beings.
3 The majority of new products are a result of in-depth research.
4 You do not need to be highly intelligent to be creative.

9. There are obstacles to thinking and acting creatively which includes environmental
barriers. The physical environment can act as a barrier to creativity through …
1 routine.
2 rewards.
3 culture.
4 finance.

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10. There are many reasons or push factors which may force South Africans to become
entrepreneurs. Which option below represents such push factors?
1 unemployment and achievement
2 retrenchment and job insecurity
3 recognition and independence
4 none of the above.

11. An entrepreneur needs to take the following into consideration when establishing a home-
based business.
1 feet count
2 maintenance
3 accessibility
4 security

12. Sikulume wants to start Sikulume’s Motors, and will be in the business on his own. Which of
the following legal forms could Sikulume use?
1 sole proprietorship, private company
2 close corporation, sole proprietorship
3 partnership, close corporation
4 private company, partnership

13. Small business owners may need to conclude several contracts in the starting and running
of their business. Which one of the following is something the small business owner must
NOT do when concluding a contract?
1 Check the fine print as it also contains stipulations and terms of agreement.
2 Make sure that the contracting company is indeed the real contracting company.
3 Always request a signed copy of the agreement and keep it in a safe place.
4 Sign a draft contract for where pages are omitted for amendment by the contracting
company.

14. Medium term finance refers to finance that is repayable between one and three years.
Which one of the following is the most correct form of medium-term finance?
1 shipper’s finance
2 equity capital
3 acceptance credit
4 leasing finance

15. Networking is an important resource for any entrepreneur. Networking is built on the
principles of network sustainability, reciprocity and networking …
1 relationships.
2 benefits.
3 support.
4 functions.

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16. The manufacturing, producing or making any goods, whether in South Africa or elsewhere,
without the authority of the owner of the intellectual property rights in the protected goods is
referred to as …
1 copyright.
2 counterfeit.
3 intellectual property.
4 trademark.

17. Why does a small business need a quality system?

1 to maintain source documents and provide an audit trail
2 for accurate reporting of financial information
3 to improve performance, coordination and productivity
4 to manage the venture through ethical behaviour

18. An entrepreneur can incur costs in preparing the proposal for raising finance. This
may require inputs from specialists such as accountants, financial consultants and
possibly an investment banker. These costs are referred to as … costs.
1 upfront
2 back-end
3 advertising
4 legal

19. The management plan section of the business plan …

1 provides details of the organisational structure of the business.
2 focuses on facilities and manufacturing capabilities of the business.
3 describes how many products can be produced by the business.
4 focuses on customers, industry and competition.

20. Which one of the following is not a condition that affects the selection of a business
location?
1 availability of raw materials
2 labour legislation
3 infrastructure
4 accessibility to the market

Total [20]

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COMPULSORY ASSIGNMENT 02: FIRST SEMESTER 2018

Assignment 2 (Written)

Due date Unique number

09 April 2018 728726

Question 1
Read the case study below and answer the questions that follow.

Ina Paarman was inspired by her grandmother’s cooking, and her own interest and talent
guided her to study to become a home economics teacher. She pursued her career as teacher
and lecturer, and also travelled extensively to learn as much as possible about food in other
cultures. With the support of her husband and her mother, herself an entrepreneur who started
a business at age 56, she then ventured into her own business in 1982 and started a cookery
school. After extensive planning Ina’s Kitchen began operating from the converted garage of her
family home with only six pupils and one employee. Owing to good exposure through an
opportunity to present a TV show, she became well known and many more enrolled in her
school. These were the days before TV celebrity chefs but in effect Ina Paarman became South
Africa’s first one. The school grew and so did Ina’s business. She started to develop new food
products, the first being her Seasoned Sea Salt. She also self-published her first cookbook after
all the publishers she approached turned it down, which became and remains a bestseller. In
1990 her son Graham, a finance graduate with excellent financial knowledge and expertise,
joined the business. He recommended a new strategy for growth, and they began to focus on
large-scale production, expanding into manufacturing by extending the product range,
revamping the packaging and relocating to factory premises. Today the factory employs 120
workers and produces a wide range of products including seasonings; spices; sauces;
marinades; salad dressings; soups; gravy and stock powders and concentrates; icing kits; cake,
biscuit, dessert and muffin mixes; and many more. They managed to get their products into Pick
n Pay and Spar, and they also started to export to the UK and Australia in 1995. The
international expansion caused some serious problems and setbacks, through which they
learned valuable lessons, so currently their international involvement is limited and
conservatively managed. In 1998 they expanded further by developing customised products for
restaurants and franchised food groups. Today Paarman Foods is a multimillion-rand South
African brand, servicing local and overseas markets with a diverse product offering. They are
constantly innovating, and invest in high-technology equipment to ensure that their products are
tasty, fresh and healthy, and have a high nutritional value.
Source: Nieman, G & Nieuwenhuizen, C (eds). 2014. Entrepreneurship: a South African Perspective. 3rd edition. Van Schaik: Pretoria

1.1. Would you classify Ina as an entrepreneur? Provide a reason for your answer. (2)
1.2. Entrepreneurs need to possess certain managerial success factors that will enable
them to manage a business successfully. Discuss any five of these managerial
factors and support your answer with examples from the case study. (10)
1.3. Describe how Ina followed the entrepreneurial process in establishing her
business. (8)

1.4. There are certain commonalities with regard to the background of entrepreneurs.
Discuss Ina’s background as an entrepreneur and support your answer with
examples from the case study. (6)

17
1.5. Ina was a woman entrepreneur. List the different types of women entrepreneurs. (4)
[30]
Question 2
2.1. A business plan is drawn up for different reasons. Describe what a business plan to
attract shareholders or partners should focus on. (5)
2.2. Discuss a partnership as a legal form a business can take in South Africa. (10)
2.3. Explain the aims and objectives of business incubation. (5)
[20]
Question 3
3.1. The process of starting up is based on the fundamentals of management, which are
planning, organising, leading and control. Briefly discuss the fundamentals of
management. (8)
3.2. Discuss the three different sources of finance for an entrepreneur and give three
examples of each. (12)
[20]
TOTAL {70}

18
 ETP3701/101/3/2018

COMPULSORY ASSIGNMENT 01: SECOND SEMESTER 2018

Assignment 1 (Multiple-choice)

Due date Unique number

24 August 2018 701401

1. The customers that make up a niche market tend to be accessible and willing to purchase the
product or service. When speaking of market structure, as one of the determinants of the
attractiveness of a market, reference is made to …
a low cost goods and services.
b management culture.
c product differentiation.
d entry and exit conditions.

1 ab
2 bd
3 cd
4 ac

2. Ensuring that a product/service possesses a competitive advantage will help solve the
problem of … when compiling a business plan.
1 a lack of objectivity
2 a lack of a unique product/service
3 understatement of expenses
4 disregard for legal requirements

3. An individual who intends to pursue a business opportunity within the next three years is
known as a/an … entrepreneur.
1 established
2 potential
3 start-up
4 intentional

4. There are hundreds of creativity techniques that will assist you to think more creatively,
generate ideas and even analyse opportunities in the marketplace. The following method
forces you to see things backwards, inside out and upside down, thus enabling you to
analyse the whole concept or problem.
1 random input
2 association technique
3 problem reversal
4 discontinuity principle

19
5. The result of a leapfrog or significant breakthrough in, for instance, technology is called …
innovation.
1 incremental
2 modular
3 radical
4 architectural

6. Which one of the following markets would be attractive for an entrepreneur to enter?
1 where demand outweighs current supply
2 declining cost conditions on a continual basis
3 a small and stagnant market
4 where there is a high concentration of buyers and sellers

7. Making a list of all existing and potential competitors and conducting a SWOT analysis for
each competitor will help avoid the problem of … when compiling a business plan.
1 lack of logical sequence
2 failure to anticipate obstacles
3 inappropriate market research
4 ignoring competition

8. Which one of the following refers to techniques or processes that assist in producing final
products and services as a type of creativity?
1 innovative
2 productive
3 expressive
4 inventive

9. An entrepreneur must deliberately come up with creative ideas that can be converted into a
business opportunity. Which of the following can be used to generate ideas from?
1 common needs
2 business plan
3 locus of control
4 planning

10. In addition to entrepreneurial success factors and personal characteristics, successful

entrepreneurs also need managerial success factors or skills. Which of the following are part
of managerial success factors?
1 planning, confidence, responsibility
2 flexibility, the use of experts, client service
3 client service, planning, knowledge of competitors
4 knowledge of competitors, commitment, flexibility

11. The entrepreneur should be able to determine specific success factors impacting on a
chosen business. A general factor in the physical establishment of a business is …
1 good location.
2 access to the target market.
3 a rich suburb.
4 a bus stop nearby.

20
 ETP3701/101/3/2018

12. This strategy is considered if the possibility of a loss cannot be eliminated completely.
1 avoidance
2 transfer
3 retention
4 All of the above.

13. The type of network where an exchange of information takes place is referred to as a ...
network.
1 professional
2 personal
3 social
4 extended

14. John, Kate and Maria own and manage J & M’s Kitchen, a take-away restaurant. Kate
suddenly becomes ill and resigns from the business. Maria and John are willing to continue
to run the business but their legal advisor informs them that legally the business has ceased
to exist. Which form of business ownership is J & M’s Kitchen?
1 partnership
2 close corporation
3 company
4 sole proprietorship

15. The form of business an entrepreneur chooses is influenced by the following considerations:
a) number of owners
b) market demand
c) tax considerations
d) the level of formality required
e) competition

1 a, b, d
2 b, c, e
3 a, c, d
4 b, d, e

16. The process of starting up a business is based on the fundamentals of management.

Record keeping, risk management, quality, ethics and internal control systems are part of …
1 planning.
2 control.
3 leading.
4 organising.

17. Quite often business ventures pay insufficient attention to risk management. Risk exists
because valuable resources are committed to a venture. Which one of the following is an
example of property risk?
1 natural disasters
2 bad debts
3 employee dishonesty
4 product liability

21
18. What do venture capitalists look for in terms of a competitive business venture?
1 unique product or service
2 large operating margins
3 global growth potential
4 size of the investment

19. The break-even point refers to the level of turnover where the …
1 cost of sales = gross profit.
2 net profit = gross profit.
3 gross profit = estimated operating cost.
4 gross profit = budgeted sales.

20. An invoice-based tax levied on supplies of goods and services by registered businesses is
called …
1 stamp duty.
2 value-added tax.
3 transfer duty.
4 excise duties.

Total [20]

22
 ETP3701/101/3/2018

COMPULSORY ASSIGNMENT 02: SECOND SEMESTER 2018

Assignment 2 (Written)

Due date Unique number

14 September 2018 753972

Question 1
Read the case study below and answer the questions that follow.

It is a courageous move to take over a failing company and try to resuscitate it. Twenty-two
year-old Peter Roberts saw potential in the almost bankrupt Saratti Motor Spares company in
Mitchell’s Plain. Saratti Motor Spares had been in existence since 2000, and Peter took over the
spares shop in 2006 in the belief that he could turn it around. He had been watching the
company and saw that the reasons for its slide were not terminal, but rather caused by
mismanagement and financial carelessness. The beginning was tough, and the business ran at
a loss for about two-and-a half years, but Peter sweated it out until he started making a profit.
This year has been his first profitable period and it is time for expansion, he feels. Saratti sells a
wide variety of motor spares to the public, and Peter believes it has been his competitive pricing
structure and determination to shop around for the best prices that have helped turn the
business around. At this stage he is a one-man shop, but is looking to employ two salespeople
within the next few months and expand not only in size but laterally too. In the short term, Peter
wants to have an operating workshop as well as a car wash business by about September. His
plans for the next few years are extensive: he wants to open another retail motor spares shop
next year, and in the next two years or so he wants to open a wholesale operation and expand
into other African markets. “There is little or no spares infrastructure in Africa,” says Peter, “so I
see it as a viable option in the long run as most of those economies are on the verge of rapid
growth and I would like to hit those markets as soon as possible.”
Source: Nieman, G & Nieuwenhuizen, C (eds). 2014. Entrepreneurship: a South African Perspective. 3rd edition. Van Schaik: Pretoria

1.1. Discuss the actions an entrepreneur needs to take when seeing the window of
opportunity. Identify from the case study how Peter saw a window of opportunity for
his business venture. (5)

1.2. Explain to Peter what actions he should take in measuring the window of opportunity
in expanding his business. (2)

1.3. Peter approaches you to assist him in coming up with a plan for his expansion.
Advise Peter on what aspects he should include in a business plan for expanding a
business. (6)

1.4. Together with characteristic and success factors, entrepreneurs also need essential
skills for them to run and manage their businesses successfully. Discuss any six of
these essential skills and support your answer with examples from the case study.
(12)

1.5. Define sustainable competitive advantage and give the basis for Peter’s competitive
advantage. Support your answer with examples from the case study. (5)

[30]
23
Question 2

2.1. Discuss the steps to be taken in order to avoid the problem of ignoring competition
when compiling a business plan. (5)

2.2. Define networking and explain the benefits of networking. (9)

2.3. Briefly explain any three (3) creative techniques that an entrepreneur can use to think
and act more creatively. (6)
[20]

Question 3

3.1. To ensure quality in a business venture, it is important to have a quality system in

place. Briefly explain why a small business needs a quality system. (8)

3.2. Discuss the criteria an entrepreneur can use in selecting a form of business
ownership. (12)
[20]

TOTAL {70}

24