Cambridge IGCSE™: Enterprise 0454/11 May/June 2021

Cambridge IGCSE™
ENTERPRISE 0454/11
Paper 1 Case Study May/June 2021
MARK SCHEME
Maximum Mark: 100
Published
This mark scheme is published as an aid to teachers and candidates, to indicate the requirements of the
examination. It shows the basis on which Examiners were instructed to award marks. It does not indicate the
details of the discussions that took place at an Examiners’ meeting before marking began, which would have
considered the acceptability of alternative answers.
Mark schemes should be read in conjunction with the question paper and the Principal Examiner Report for
Teachers.
Cambridge International will not enter into discussions about these mark schemes.
Cambridge International is publishing the mark schemes for the May/June 2021 series for most Cambridge
IGCSE™, Cambridge International A and AS Level components and some Cambridge O Level components.
This document consists of 24 printed pages.
© UCLES 2021 [Turn over

0454/11 Cambridge IGCSE – Mark Scheme May/June 2021
PUBLISHED
Generic Marking Principles
These general marking principles must be applied by all examiners when marking candidate answers. They should be applied alongside the
specific content of the mark scheme or generic level descriptors for a question. Each question paper and mark scheme will also comply with these
marking principles.
GENERIC MARKING PRINCIPLE 1:
Marks must be awarded in line with:
• the specific content of the mark scheme or the generic level descriptors for the question
• the specific skills defined in the mark scheme or in the generic level descriptors for the question
• the standard of response required by a candidate as exemplified by the standardisation scripts.
Marks awarded are always whole marks (not half marks, or other fractions).
Marks must be awarded positively:
• marks are awarded for correct/valid answers, as defined in the mark scheme. However, credit is given for valid answers which go beyond the
scope of the syllabus and mark scheme, referring to your Team Leader as appropriate
• marks are awarded when candidates clearly demonstrate what they know and can do
• marks are not deducted for errors
• marks are not deducted for omissions
• answers should only be judged on the quality of spelling, punctuation and grammar when these features are specifically assessed by the
question as indicated by the mark scheme. The meaning, however, should be unambiguous.
Rules must be applied consistently, e.g. in situations where candidates have not followed instructions or in the application of generic level
descriptors.
© UCLES 2021 Page 2 of 24

PUBLISHED
Marks should be awarded using the full range of marks defined in the mark scheme for the question (however; the use of the full mark range may
be limited according to the quality of the candidate responses seen).
Marks awarded are based solely on the requirements as defined in the mark scheme. Marks should not be awarded with grade thresholds or
grade descriptors in mind.

PUBLISHED
Social Science-Specific Marking Principles

(for point-based marking)
1 Components using point-based marking:
• Point marking is often used to reward knowledge, understanding and application of skills. We give credit where the candidate’s answer
shows relevant knowledge, understanding and application of skills in answering the question. We do not give credit where the answer shows
confusion.
From this it follows that we:
(a) DO credit answers which are worded differently from the mark scheme if they clearly convey the same meaning (unless the mark
scheme requires a specific term)
(b) DO credit alternative answers/examples which are not written in the mark scheme if they are correct
(c) DO credit answers where candidates give more than one correct answer in one prompt/numbered/scaffolded space where extended
writing is required rather than list-type answers. For example, questions that require n reasons (e.g. State two reasons …).
(d) DO NOT credit answers simply for using a ‘key term’ unless that is all that is required. (Check for evidence it is understood and not used
wrongly.)
(e) DO NOT credit answers which are obviously self-contradicting or trying to cover all possibilities
(f) DO NOT give further credit for what is effectively repetition of a correct point already credited unless the language itself is being tested.
This applies equally to ‘mirror statements’ (i.e. polluted/not polluted).
(g) DO NOT require spellings to be correct, unless this is part of the test. However spellings of syllabus terms must allow for clear and
unambiguous separation from other syllabus terms with which they may be confused (e.g. Corrasion/Corrosion)
2 Presentation of mark scheme:
• Slashes (/) or the word ‘or’ separate alternative ways of making the same point.
• Semi colons (;) bullet points (•) or figures in brackets (1) separate different points.
• Content in the answer column in brackets is for examiner information/context to clarify the marking but is not required to earn the mark
(except Accounting syllabuses where they indicate negative numbers).

PUBLISHED
3 Calculation questions:
• The mark scheme will show the steps in the most likely correct method(s), the mark for each step, the correct answer(s) and the mark for
each answer
• If working/explanation is considered essential for full credit, this will be indicated in the question paper and in the mark scheme. In all other
instances, the correct answer to a calculation should be given full credit, even if no supporting working is shown.
• Where the candidate uses a valid method which is not covered by the mark scheme, award equivalent marks for reaching equivalent stages.
• Where an answer makes use of a candidate’s own incorrect figure from previous working, the ‘own figure rule’ applies: full marks will be
given if a correct and complete method is used. Further guidance will be included in the mark scheme where necessary and any exceptions
to this general principle will be noted.
4 Annotation:
• For point marking, ticks can be used to indicate correct answers and crosses can be used to indicate wrong answers. There is no direct
relationship between ticks and marks. Ticks have no defined meaning for levels of response marking.
• For levels of response marking, the level awarded should be annotated on the script.
• Other annotations will be used by examiners as agreed during standardisation, and the meaning will be understood by all examiners who
marked that paper.

PUBLISHED
Question Answer Marks Guidance
1(a) Describe two ways of being enterprising at home or at school, 4 AO1 – 4

other than by taking the initiative.
Each way should be marked as follows:

Identification of a way [1]
Description showing understanding [+1]
Examples might include:

• developing new skills
• making reasoned evaluations
• organising activities/yourself
• problem solving
• taking the initiative
• thinking creatively
• using technology for learning
• working as part of a team.
1(b) Identify three of the six stages in the enterprise process. 3 AO1 – 3
1 mark per correct stage.
Answers might include:

• identifying the problem or need
• exploring creative solutions
• (Action) planning
• implementing (the plan)
• monitoring progress
• evaluation (of successes and failure).

PUBLISHED
1(c) Explain how one of the six stages in the enterprise process 3 AO2 – 1
helped in the operation of your enterprise project. Use an AO3 – 2
example to support your answer.
Basic explanation of how stage assists enterprise [1]

Detailed explanation showing how the stage assists enterprise to
operate effectively [+1]
Example from own enterprise experience showing how stage was
used [1]
Example:
We spent a lot of time identifying what people wanted from a cupcake
[1] this meant we only made the products that people wanted [1]
therefore we avoided wasting money. [+1]
2(a) Explain one purpose of the action plan that Josiah wrote. 2 AO1 – 2
Correct identification of a purpose [1]

Explanation of the purpose [+1]

• helps to organise all the tasks Josiah needed to do [1] so the
right thing done at the correct time [+1]
• identify key stages of the enterprise [1] to stop any waste of effort
[+1]
• identifies risks/obstacles [1] so they can be tackled [+1]
• lists who is responsible for each task [1] so you can check if they
have done their work [+1]
• provides a checklist [1] so you can identify delays before it is too
late. [+1]

PUBLISHED
2(b) Identify one document produced for formal meetings. 1 AO1 – 1

• meeting notification/notice
• agenda
• minutes.
2(c) Describe two financial records which are usually produced by 4 AO1 – 4
enterprises.
Each financial record should be marked as follows:

Identified financial record [1]
Description showing understanding of the financial record. [+1]

• cashflow forecast/statement [1] predicts / shows money going
into and out of an enterprise [+1]
• income statement [1] records the income and expenditure
(finances) of an enterprise to calculate profit or loss [+1]
• budget [1] estimates income and expenditure/ attempts to limit
overspending [+1]
• receipt [1] acts as proof of purchase. [+1]

PUBLISHED
2(d) Explain how one financial record helped, or could have helped, 3 AO2 – 1
in the success of your enterprise project. Use an example AO3 – 2
to support your answer.
Identification of how the financial record helps an enterprise [1]

Explanation showing developed understanding [+1]
Example from own enterprise experience. [1]
Income statement:
• shows profit to be reinvested
• if turnover is sufficient to carry on the enterprise
• areas where costs need to be cut.
Cashflow statement:
• identified when costs would be highest so we could arrange
finance
• when revenue would be highest so we could plan to purchase
items then.
Example:
The budget helped us to avoid overspending [1] when we bought
ingredients for the cupcakes [1] because it gives the maximum
amount available for us to spend. [+1]

PUBLISHED
3(a) State two possible problems with email communication. 2 AO1 – 2
1 mark per correct point.

• easily misunderstood/ tone misunderstood
• system may be hacked so not secure
• may not know they have been read/ people do not check emails
frequently
• failure of internet may mean they are not delivered
• seen as junk mail /spam.
3(b) Explain one way that the language Josiah used when 2 AO1 – 1
communicating with students could be different from the AO2 – 1
language used with teachers.
Identifies a difference [1]

Explains why the difference [+1]
communication with teachers:

• should be formal/ professional [1] to be polite to an elder [+1]
• may contain subject related jargon [1] because the teachers will
understand the terminology. [+1]
communication with students:

• maybe informal/casual [1] because they are friends/peers [+1]
• should not contain jargon [1] which they may not understand [+1]
• may contain slang [1] which they will understand. [+1]

PUBLISHED
3(c)(i) Explain one possible reason why profit was not important to 3 AO1 – 1
Josiah’s study buddy enterprise. Use an example to support AO2 – 1
your answer. AO3 – 1
Identification of a reason profit was not needed [1]

Explanation showing why this was not important [+1]
Example from Josiah’s enterprise. [1]
Answers for knowledge might include:

• finance not required for provision of service [1]
• items are not sold (no revenue) [1]
• other methods used to measure success [1]
Example:
Josiah’s is a social enterprise [1] he wants to help his fellow students
[1] so money is not important to his enterprise. [+1]

PUBLISHED
3(c)(ii) Explain one reason why profit was, or was not, important in your 3 AO1 – 1
enterprise project. Use an example to support your answer. AO2 – 1
AO3 – 1
Identification of a reason profit was /was not needed [1]
Explanation showing why this was important [+1]
Example from own enterprise. [1]
Answers for knowledge might include:

• evidence of success
• a source of finance (reinvested)
• used as evidence that loan can be repaid
• main aim of the enterprise
• reward for entrepreneur’s effort.
Example:
We could not keep the profit [1] the school insisted all money go to
charity [1] because we were a social enterprise [+1]
Making a profit was our main aim [1] as a new school enterprise [1]
we would need the funds to reinvest [+1]
Our food enterprise was successful as we made the biggest profit. [2]

PUBLISHED
4(a) Explain two disadvantages of operating as a sole trader. 4 AO1 – 4
Each point should be marked as follows:

Identification of a disadvantage [1]
Explanation showing why this is a disadvantage [+1]
Answers may include:

• unlimited liability [1] so the owner risks losing their own assets
[+1]
• difficult to raise finance [1] as only one person provides capital/it
is seen as risky [+1]
• lack of expertise [1] as only one person to organise the
enterprise. [+1]

PUBLISHED
4(b) Explain how two enterprise skills helped an entrepreneur you 6 AO1 – 2
have studied to become successful. AO2 – 2
AO3 – 2
Each point should be marked as follows:
Identification of a skill [1]
Explanation showing understanding of the skills use [+1]
Example related to entrepreneur [1]
Answers may include:

• creativity
• delegation
• innovation
• initiative
• leadership
• perseverance /determination
• practical skills
• problem solving
• self confidence
• taking calculated risks
• taking responsibility
• teambuilding
• time management / prioritising
Example:
Richard Branson was innovative [1] he developed new ways to
promote his products [+1] for example completing stunts such as
flying a balloon around the world. [1]

PUBLISHED
5(a) Explain two reasons why marketing was needed for Josiah’s 4 AO1 – 2
enterprise. Use an example from the case study to support each AO2 – 2
reason.
Each reason should be marked as follows:

Identification of a reason for marketing [1]
Explanation of a reason in the context of the case study [2]

• inform customers [1]
• create interest/ awareness [1]
• persuade people. [1]
Examples:
• inform [1] students that the mentors service was available [+1]
• to persuade [1] students to sign up for tuition [+1]
• create awareness [1] that students could become tutors. [+1]

PUBLISHED
5(b) Explain two methods of market research which were, or could 6 AO1 – 2
have been, appropriate for your enterprise project, other than a AO2 – 2
questionnaire. Use an example to support each answer. AO3 – 2
Each method should be marked as follows:

Identification of a method of market research [1]
Example showing how it was /or could have been used in context [1]
Explanation showing why appropriate in this context [+1]
Answers will depend upon their own enterprise experience but might
include:
• surveys
• interviews
• focus groups/consumer panels
• observations
• test marketing
• sales records
• government statistics
• published articles in newspapers or magazines
• trade journals
Example:
We observed [1] where students bought their snacks [1] so we knew
who our main competitors were. [+1]

PUBLISHED
6(a) Josiah identified a need within his school. 10
Analyse the importance of considering the needs and wants of

two stakeholders to the success of Josiah’s enterprise. Use
examples from the case study to support your analysis.
Level Description Mark
3 Good analysis consistently applied to the case 8–10

study
Demonstrates good knowledge of concepts
2 Some analysis supported by good application to the 4–7

case study
Demonstrates knowledge of concepts
1 Limited application to the case study 1–3
0 No creditable response 0
Knowledge may include:

• identifying stakeholders
• understanding the needs and wants of different groups
• measurements of success
Phrases which demonstrate some analysis may include:

Josiah needs to have the skills to teach the subjects that students
require.

PUBLISHED
6(a) Phrases which demonstrate good analysis will show why

considering the needs of stakeholders is important to Josiah.
These may include:
Teachers need students to be taught the correct subject content. If
Josiah does not do this, teachers will not support his enterprise and it
may be stopped.

PUBLISHED
6(b) Josiah had used leaflets and social media to persuade students 15
to be involved in his enterprise, but Ms Wood wanted him to
consider his methods carefully.
Evaluate the appropriateness of leaflets and social media as

methods to persuade students to become involved in the
enterprise. Use examples from the case study to support your
evaluation.
4 Clear reasoned evaluation is present 12–15
Good analysis applied consistently to the case

study
Demonstrates good knowledge of relevant

concepts
3 Good analysis applied consistently to the case 8–11

study is leading to evaluation
Demonstrates knowledge of relevant concepts
2 Some application to the case study supported by 4–7

some analysis
1 Limited application to the case study 1–3
Demonstrates some knowledge of relevant

concepts

PUBLISHED
6(b) Knowledge may include:

The content of leaflets/social media
Other communication methods.
Phrases which demonstrate some analysis will explain how the

methods would persuade students and may include:
Leaflets are more appropriate as they can be placed all over the
school so no student will miss them.
Phrases which demonstrate good analysis will show why this is

appropriate:
Leaflets are more appropriate as they can be placed all over the
school so no student will miss them, therefore all students who may
require help will be made aware of the study buddy enterprise.
Evaluation maybe shown by a two sided approach considering

the negative aspects of each method.

PUBLISHED
7(a) Analyse the effectiveness of two sources of help and support 10

used within your enterprise project.
3 Good analysis consistently applied to their own 8–10

enterprise experience
Demonstrates good knowledge of concepts
2 Some analysis supported by good application to 4–7

their own enterprise experience
1 Limited application to their own enterprise 1–3

experience
Knowledge may include:

• sources of help and support
• the types of help that they offer
Phrases which demonstrate some analysis explain the advice

given in context, this may include phrases such as:
Previous enterprise students explained which retailers were willing to
give discounts on snack foods to students.

PUBLISHED
7(a) Phrases which demonstrate good analysis will show how the
sources of help and support assisted the enterprise. These may
include:
The principal of our school posted an electronic advert to all parents
and students. This resulted in many customers and was the way we
earnt most of our sales.

PUBLISHED
7(b) There are a number of different sources of finance that are 15

available for start-up funding. These include:
• bank loans
• crowdfunding
• family and friends.
Evaluate which two of these sources of finance would have been
most suitable for the start-up of your enterprise project. Justify
your choice, including why you rejected the other source.
4 Clear reasoned evaluation is present 12–15
Good analysis applied consistently to their

enterprise
Demonstrates good knowledge of relevant

concepts
3 Good analysis applied consistently to their 8–11

enterprise is leading to evaluation
2 Some application to their enterprise supported by 4–7

some analysis
1 Limited application to their enterprise 1–3
Demonstrates some knowledge of relevant

concepts

PUBLISHED
7(b) Knowledge may include:

• understanding of the features of the methods identified
• knowledge of other methods of finance.
Phrases which demonstrate some analysis will show how the

sources would be used in their enterprise, for example:
We only required a small amount of money for buying ingredients,
and family and friends were willing to lend the amount.
Phrases which demonstrate good analysis will show why the

source was /was not suitable in their situation. For example:
We only required a small amount of money for buying ingredients,
and family and friends were willing to lend the amount. As they did
not charge interest this reduced out costs allowing us to charge lower
prices for the cakes.
A bank loan was not possible because we are all under 18 years of
age and this is the minimum age to apply for a bank loan.

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This document consists of 24 printed pages.

© UCLES 2021 [Turn over

GENERIC MARKING PRINCIPLE 1:

Marks must be awarded in line with:

GENERIC MARKING PRINCIPLE 2:

GENERIC MARKING PRINCIPLE 3:

Marks must be awarded positively:

GENERIC MARKING PRINCIPLE 4:

© UCLES 2021 Page 2 of 24

GENERIC MARKING PRINCIPLE 6:

© UCLES 2021 Page 3 of 24

Social Science-Specific Marking Principles

1 Components using point-based marking:

From this it follows that we:

2 Presentation of mark scheme:

© UCLES 2021 Page 4 of 24

© UCLES 2021 Page 5 of 24

1(a) Describe two ways of being enterprising at home or at school, 4 AO1 – 4

Each way should be marked as follows:

Examples might include:

1 mark per correct stage.

Answers might include:

© UCLES 2021 Page 6 of 24

Basic explanation of how stage assists enterprise [1]

Question Answer Marks Guidance

Correct identification of a purpose [1]

Answers might include:

© UCLES 2021 Page 7 of 24

2(b) Identify one document produced for formal meetings. 1 AO1 – 1

Answers might include:

Each financial record should be marked as follows:

Answers might include:

© UCLES 2021 Page 8 of 24

Identification of how the financial record helps an enterprise [1]

Answers might include:

© UCLES 2021 Page 9 of 24

3(a) State two possible problems with email communication. 2 AO1 – 2

1 mark per correct point.

Answers might include:

Identifies a difference [1]

communication with teachers:

communication with students:

© UCLES 2021 Page 10 of 24

Identification of a reason profit was not needed [1]

Answers for knowledge might include:

© UCLES 2021 Page 11 of 24

Answers for knowledge might include:

© UCLES 2021 Page 12 of 24

4(a) Explain two disadvantages of operating as a sole trader. 4 AO1 – 4

Each point should be marked as follows:

Answers may include:

© UCLES 2021 Page 13 of 24

Answers may include:

© UCLES 2021 Page 14 of 24

Each reason should be marked as follows:

Answers might include:

© UCLES 2021 Page 15 of 24

Each method should be marked as follows: