Entrepreneurship
An entrepreneur organises resources, takes risks and starts a business.
CAIE IGCSE Business 0264 - Paper 1
1.3 Enterprise, business growth and size
Topical Past-Paper Questions
Why it’s here: Entrepreneurs, business plans, measuring size, growth and reasons businesses remain small.
Key concepts to revise
The main ideas to know for 1.3 Enterprise, business growth and size.
Start-up support
Governments may support start-ups with grants, training, advice, loans or tax incentives.
Business plans
A business plan helps set objectives, forecast finance and reduce the risk of failure.
Measuring size
Size can be measured using employees, sales, capital employed, market share or output.
Business growth
Growth may be internal or external through a merger, takeover or joint venture.
Business failure
Failure may result from poor management, location, competition or weak cash flow.
Exam material
Past-paper questions
Past-paper question
0450/11/M/J/26
Peter wants to start up a small business as a photographer who takes photographs at weddings. He has been told that there is government support available for new businesses. Peter will operate his business as a sole trader. He is considering using crowdfunding as a source of finance. Peter knows that many businesses fail.
a) Identify two ways the size of a business can be measured. [2]
b) Identify two reasons why governments support new businesses. [2]
c) Identify four reasons why a business might fail. [4]