CAIE IGCSE Business Studies 1.3 enterprise growth and size
Use this enterprise-and-growth page to explain start-up motives, bank planning needs, growth decisions and business-size measures.
- Syllabus
- 2027–2029
- Course
- Business 0264
Exam points
- Identify reasons people start businesses, such as independence, income or using a skill.
- Explain why banks or governments support start-ups using finance and employment context.
- Judge growth, size or failure issues with evidence from the named business case.
Covered syllabus points
1.3. Enterprise, business growth and size question 1
Nancy wants to be an entrepreneur. She has analysed market research data and decided to start up a book shop. Nancy has identified a suitable location and prepared a business plan. Nancy is calculating her total costs. She will use this information to help her complete a break-even chart as shown in Figure 2.1. Nancy is also considering using e-commerce.
Break-even chart for Nancy's new business
Explain two ways having a business plan could help Nancy.
Way 1:
Explanation:
Way 2:
Explanation:
1.3. Enterprise, business growth and size question 2
DNG provides electricity to 16 million customers. It is a limited company which means DNG's shareholders benefit from limited liability. DNG is planning to stop using coal to produce its electricity. Pressure groups had an influence on this decision. The Managing Director knows there will be an opportunity cost to making this change. She is considering the best way to communicate this important information to DNG's 6500 employees.
Identify two limitations of using the number of employees to measure the size of a business.
Limitation 1:
Limitation 2:
1.3. Enterprise, business growth and size question 3
WMH is a business which operates in the secondary sector. It makes furniture including tables and chairs. WMH's employees are all members of a trade union. The Managing Director knows the business is likely to remain small. She is considering introducing new technology into WMH's factory. She also knows it is important for a manufacturing business to choose a suitable location for a factory.
Identify four reasons why a business might remain small.
Reason 1:
Reason 2:
Reason 3:
Reason 4:
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