IGCSE Enterprise Teachers Resource 7P

Medi Houghton, Matthew Bryant
and Veenu Jain
Cambridge IGCSE®
Enterprise
Teacher’s Resource
University Printing House, Cambridge CB2 8BS, United Kingdom
One Liberty Plaza, 20th Floor, New York, NY 10006, USA
477 Williamstown Road, Port Melbourne, VIC 3207, Australia
314–321, 3rd Floor, Plot 3, Splendor Forum, Jasola District Centre, New Delhi – 110025, India
79 Anson Road, #06–04/06, Singapore 079906
Cambridge University Press is part of the University of Cambridge.
It furthers the University’s mission by disseminating knowledge in the pursuit of education, learning and research
at the highest international levels of excellence.
Information on this title: www.cambridge.org/9781108447157
© Cambridge University Press 2018
This publication is in copyright. Subject to statutory exception
and to the provisions of relevant collective licensing agreements,
no reproduction of any part may take place without the written
permission of Cambridge University Press.
First published 2018
20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1
A catalogue record for this publication is available from the British Library
ISBN 978-1-108-44715-7
Additional resources for this publication at www.cambridge.org/education
Cambridge University Press has no responsibility for the persistence or accuracy of URLs for external or third-
party internet websites referred to in this publication, and does not guarantee that any content on such websites
is, or will remain, accurate or appropriate. Information regarding prices, travel timetables, and other factual
information given in this work is correct at the time of first printing but Cambridge University Press does not
guarantee the accuracy of such information thereafter.
®IGCSE is a registered trademark.
All exam-style questions and sample answers in this title were written by the authors. In examinations, the way
marks are awarded may be different.
…………………………………………………………………………………………………………………………………………………………………..……………
NOTICE TO TEACHERS IN THE UK
It is illegal to reproduce any part of this work in material form (including photocopying and electronic storage)
except under the following circumstances:
(i). where you are abiding by a licence granted to your school or institution by the Copyright Licensing Agency;
(ii). where no such licence exists, or where you wish to exceed the terms of a licence, and you have gained the
written permission of Cambridge University Press;
(iii). where you are allowed to reproduce without permission under the provisions of Chapter 3 of the Copyright,
Designs and Patents Act 1988, which covers, for example, the reproduction of short passages within certain
types of educational anthology and reproduction for the purposes of setting examination questions.
© Cambridge University Press 2018 1

Table of contents
Introduction to the Teacher’s Resource .......................................................................................................................3
Introduction to Enterprise ............................................................................................................................................7
Chapter 1 Setting up a new enterprise.......................................................................................................................11
Chapter 2 Skills and behaviours of enterprising people .............................................................................................18
Chapter 3 Opportunities, risk, legal and ethical considerations ................................................................................22
Chapter 4 Market research.........................................................................................................................................27
Chapter 5 Business planning.......................................................................................................................................32
Chapter 6 Sources of finance ......................................................................................................................................36
Chapter 7 The concept of trade credit .......................................................................................................................38
Chapter 8 Cash flow, break-even and income statement ..........................................................................................41
Chapter 9 Marketing...................................................................................................................................................45
Chapter 10 Negotiation ..............................................................................................................................................50
Chapter 11 Communication........................................................................................................................................55
Chapter 12 Help and support for enterprise ..............................................................................................................58
Chapter 13 Evaluation ................................................................................................................................................63
Planning – a scheme of work overview ......................................................................................................................67
Acknowledgements ....................................................................................................................................................83

Introduction to the Teacher’s Resource
This Teacher’s Resource has been written to help students studying Cambridge IGCSE® Enterprise (0454).
This includes a variety of resources that have been designed to provide additional guidance and support to
teachers using the Cambridge IGCSE Enterprise coursebook.
The Teacher’s Resource provides the following support:
1. A sample scheme of work showing one possible approach to delivering the course if teaching it over 2 years.
This outlines skills, activities and resources to help support you when planning your teaching and provides
suggestions for how many weeks to spend on each syllabus section.
2. Teaching ideas, including further activities (with answers) and tips for the topic and ideas for differentiation
where appropriate.
3. Project guidance in each chapter, suggests information you need to give students about their projects and
anticipates some of the things that students may find difficult or challenging about the project.
4. Worksheets for each chapter, linked to activities in the coursebook. These allow students the opportunity to
practice or consolidate a skill or knowledge. When to use them is suggested in the scheme of work and in the
teaching ideas.
5. Suggested answers to all activities and exam-style questions for each chapter – this is a list of bullet
points for more open-ended questions outlining possible areas for discussion. It is not a definitive list of
possible answers.
You can use these resources as presented, or as a basis for creating your own materials, which you can tailor to
suit your students’ individual needs.
Teaching Enterprise
As a teacher your role is not simply to tell students what they need to know, but to encourage them to think
about and, wherever possible, take an active part in their own learning. For example, try to use ideas boards,
group-based activities and discussion or investigations rather than teacher-led talk to introduce and explore concepts.
Using your coursebook

The coursebook has been written to include all the subject content from the syllabus, along with tips, activities
mini case studies and practical project guidance, including templates which students can use at the different
stages in their project. These allow students the opportunity to learn about and develop their understanding and
the skills involved in running a small enterprise. We also hope that the coursebook will continue to be used by
students outside lessons to help them identify, plan, implement and evaluate their enterprise projects.
The concept of each chapter is introduced in the main body of the text and is often accompanied by a helpful
visual representation, and students can then see how the concept is applied in a real-world example in the mini
case studies. The aim is to then give students the opportunity to apply the knowledge and examples from
real-world cases to their own coursework planning.
In the coursebook you will find:
Application of enterprise skills is a key focus. There are a variety of individual and group-based learning activities
to give students opportunities to apply their knowledge and skills in a range of ways. Encourage students to
practise skills outside the classroom to help develop their ability to use skills such as communication, practical
problem-solving and negotiation in a variety of situations.

Mini case studies provide further opportunities for students to develop and apply their knowledge and
understanding in a range of ‘real world’ scenarios. They can be used as the basis for investigation, stimulus for a
discussion to encourage analysis and evaluation or as a way to consolidate learning. They can also help prepare
students for the pre-released case study questions in the exam.
Project prompt boxes appear throughout the chapters. These prompts will give guidance to students on what to
consider when planning the next stage of their project, taking into account the knowledge they have learnt and
the examples they have read.
Exam-style questions are included at the end of every chapter to help prepare students for assessment.
These can be used as a basis for a discussion or activity to generate ideas. Alternatively they can help students
practice how to structure an answer. They can also be used as part of formative assessment to test knowledge
and understanding.
Please note the exam-style questions and sample answers are written by the authors. The way the marks are
awarded in the examination may be different.
Using your Teacher’s Resource

Your Teacher’s Resource is organised into chapters just like the coursebook. At the start of each Teacher’s
Resource chapter, there are brief guidance notes intended to highlight some of the main syllabus themes that
need to be covered, along with possible teaching ideas.
At the start of each chapter, there are brief guidance notes intended to highlight some of the main syllabus
themes that need to be covered, along with some possible ideas on how to help teach the knowledge and skills.
 Teaching ideas provide suggestions and tips on how the content and skills in each chapter can be delivered.
 Project guidance offer help when advising students on what to consider when planning the each stage of
their project, taking into account the knowledge they have learnt and the examples they have read.
 Mini case studies provide further opportunities for students to develop and apply their knowledge and
understanding in a range of ‘real world’ scenarios. They can be used as the basis for investigation, stimulus for
a discussion to encourage analysis and evaluation or as a way to consolidate learning. They can also help
prepare students for the pre-released case study questions.
 Worksheets provide opportunities to explore ideas and/or can be used to help check understanding of
concepts or practise skills. These can be used as presented or adapted to suit your own requirements.
 Suggested answers to activities, case studies and exam-style questions are provided for all the questions in
each chapter. For more open-ended questions, the format is a list of bullet points outlining possible areas for
discussion. Remember there are other possible valid answers for many of the questions.
Please note the exam-style questions and sample answers are written by the authors. The way the marks are
awarded in the examination may be different.
Be flexible in how you use these resources. For example, you might want to switch some of the discussion topics
as the basis for written exercises. Case studies can be used as a starter or consolidation activity. The exam-style
questions can be used to a basis for a discussion or an activity to generate ideas or help students practise how to
structure an answer. They can also be used as part of formative assessment to test knowledge and understanding.
Alternatively, you might want to give more able students the opportunity to explore issues in more depth and
allow them to present their findings to the class. This could also provide an opportunity to practise their
presentation and communication skills.
Adapting resources is important in Enterprise as the opportunities and risks are always changing. Enterprising
people have to be ready to change what they do, so there is always plenty of new material you can use as the

basis for a discussion, activity or mini case study. Be ready to reuse, or adapt the questions so that real-world
examples are kept relevant and familiar. You could also encourage students to write their own case studies based
on researching enterprises in your area.
Assessment
Assessment objectives
These are the skills that will be tested in the examination. Enterprise is a skills-based subject so it is important
that students are able to demonstrate more than knowledge to do well.
Knowledge – requires students to show knowledge and understanding of terms and concepts. This could include
a definition or stating factors, reasons or methods.
Application – using knowledge and understanding in a range of different scenarios. This means using the
information from the case study or evidence from your project in such a way that is clear that the answer is
directly linked to the context.
Analysis and evaluation – presenting developed points and making supported decisions. Students should not
simply list points, but try to develop their answers to explain the effect on the enterprise. For example, encourage
them to use phrases such as ‘because’ and ‘therefore’ to show that they understand the implications of their
suggestions. Focus on developing two or three relevant points (ideally including points both for and against
different ideas).
Evaluation involves making a decision, and then explaining why you hold this view. Remind students that a
decision alone is not evaluation. The explanation should focus on why their final choice is the most appropriate
and include why this option is better than other possible answers, in the given situation.
Method of assessment
Assessment for this course consists of one written exam paper and a coursework project.
Each part counts for half of the final grade. Both components assess all three skills. The paper is marked out of
100 and the coursework is marked out of 60.
The paper is based on a pre-released case study. Part A consists of short answer questions and part B has a
number of open-ended questions.
For the coursework project, students will need to provide a portfolio of evidence which demonstrates tasks
undertaken as part of the enterprise project.
It is important that students do not see the exam paper as separate to the coursework element. Students will be
expected to refer to the experiences gained as part of their project in their answers to some of the questions. The
structure and approach of the student coursebook encourages these connections to be made, with frequent links
between theory and practice.

Pre-release case study
Please note that the pre-released case study is provided to students before the examination. You can help your
students prepare for the pre-released case study in the following ways:
 Ask students to summarise the case study – what type of enterprise is it, what areas does it do well at and
what are the main issues it is facing, what do the people want to do in the future.
 Identify key terms and topic areas covered in the case study – for example, does it cover finance, marketing,
planning, help and support for enterprise?
 Students should think about how they would solve the problems identified in the case study, and how they
managed or would manage any similar issues faced in their project.

Introduction to Enterprise
Teaching ideas
In this chapter students will learn about the meaning and purpose of an enterprise, and how enterprising skills
can be used in different contexts like at school or at home.
 Introduce the idea of enterprise by talking about a local, national or international enterprise that everyone
knows about (let’s call it enterprise A for the purpose of this guidance).
 Talk about the entrepreneur who started enterprise A, or another entrepreneur that students know of, and
highlight their enterprise skills. Groups can research and analyse the chosen entrepreneur’s enterprise skills,
understand what makes them successful and identify skills that they can learn from them. Let students use
recent business magazines or the internet for their research. Each group presents their findings to the class.
 Lead a discussion about characteristics of enterprises producing goods and services. Ask students to find out
if enterprise A is a social or a business enterprise. What goods and services does it produce?
 Discuss enterprise A’s impact on the community and other stakeholders. Alternatively, choose a local
enterprise and the impact it has had on your community.
 A local business person/entrepreneur could be invited to give a talk to the students about how and when they
first came up with the idea of starting an enterprise.
 Ask students to identify two things that they have done successfully at school or at home. It could be a hobby,
a sport or a part-time job. Students individually list what skills made this job successful. These points could be
displayed on a large sheet of paper or mind map in the classroom.
Project guidance
The content in this chapter mainly correlates with the work required in task 1 of the enterprise project:
Identifying your enterprise project. The write-up should show good evidence of knowledge of enterprise skills
using various communication methods. It should include the following:
 Process of identifying and choosing the particular project: a brainstorm of various projects/activities, followed
with a detailed evaluation of each project and justification for their final choice. The justification should be
supported by evidence and detailed analysis.
 Summary of the project chosen, including these key points:
 the need/problem being solved
 the aim of the enterprise
 is the enterprise going to be a social enterprise or profit-making?
 Details of the research methodology as well as a clear analysis and presentation of its findings and conclusions.
It should include the actual questionnaire or research methods used and the data obtained.
 A mind map/visual representation of the skills that students think will be required for this project and
identification of the skills they do and do not possess.
 The different stakeholders of the enterprise and their role.
 The strengths and weaknesses of their solution and evaluation of why they think the solution they have found
is the most effective.

Worksheet 0.1
Use the following worksheet to help you identify needs and challenges facing your school or community and
develop ideas to solve one of them. Brainstorm and note down the possible fundraising events/activities you
could organise and choose one. List the different stakeholders involved and how they will benefit from the
need/challenge being met.
Identifying the needs/challenges Need/challenge chosen:
1.
2. Justify your choice:
3.
Fundraising event/activity Fundraising activity/need chosen:
1.
Justify your choice:

2.
3.
Stakeholders: Benefit to stakeholder 1:
1.
Benefit to stakeholder 2:
2.
3.
Benefit to stakeholder 3:

Suggested answers to activities
Activity 0.1
Students can use Worksheet 0.1 to work through this activity.
Identifying a need or challenge: This can be done individually or as a group of 3 or 4. Students should list their
ideas for a need/challenge in their school or community. Then they should gather some more information on
each need/challenge and choose one.
1 Fundraising event/activity: Get the students to brainstorm possible ways to raise funds, evaluate them, choose
one and justify their choice. Possible ideas include running lunchtime clubs/activities for a fee, cake sales after
school, talent show (funds raised from sale of tickets and snacks sold during the show).
2 Stakeholders: Possible stakeholders are students, parents, teachers, school and the local community. Benefits
could include:
 Students would have more resources to use at school which will benefit their learning.
 Parents would gain by their children having an improved and better education.
 Teachers would benefit by being able to plan more practical and interesting lessons.
 The school would possibly benefit from an enhanced reputation as a result of improved attainment by students.
 The local community may benefit by having the opportunity to use school’s resources, if rented out by the school.
Suggested answers to case study

Nirali Someshwar, India
1 Ms. Nirali Someshwar has been enterprising in the following ways:
 taking the initiative to set up something new.
 having the confidence to take the opportunity when asked by parents and doing something that she had
not planned for.
 following her passion for dance.
 being innovative and creative by running different types of classes; for children, conducting corporate
events, and choreographing dances for weddings. She also teaches different dance forms.
 positive thinking, setting up something new and believing that she will continue to be successful in an
area that she did not have a formal qualification in.
Note to teachers: this is a sample answer based on the syllabus points covered in this chapter only. If students are
answering this question having covered all the syllabus topics, their answer should make specific reference to the
content of topics 2.1, 3.1 and 3.2 in the syllabus (Chapters 1 and 2 respectively in the coursebook).
2 She can continue to be enterprising by continuing her careful plan ning and dedication and
understanding/researching the competition in the market. Developing her skills further in the areas
identified in her research can be helpful.
3 The risks she may have considered are:
 the financial investment required
 the lack of a formal qualification in dance
 the potential cost of not having followed a career in architecture.

Note to teachers: this is a sample answer based on the syllabus points covered in this chapter only. If students are
answering this question having covered all the syllabus topics, their answer should make specific reference to the
content of topic 4.2 in the syllabus (Chapter 3 in the coursebook).
4 The different stakeholders of this enterprise are:
 Nirali herself, due to the returns she gets from the time and money she has invested in this enterprise
 the community (children and parents that both learn from her)
 the employees who work for her
 the competition (other businesses offering similar services)
 the government as they would be gaining taxes from the income of the enterprise.
5 This is a business enterprise as its main aim is to make profit. Though dance can be seen as a way to improve
people’s mental and physical health and so is better for society, that is not the main aim of this enterprise.
Suggested answers to Worksheet 0.1

Students’ own answers

Chapter 1 Setting up a new enterprise
Teaching ideas
In this chapter students will learn what is involved in starting a new enterprise, and the advantages and
disadvantages of different types of business organisations.
The enterprise process

 Introduce the topic. Working in groups of four, ask students to create a mind map (on A3 sheets) of all the
things they would need to consider to set up an enterprise. Pupils who find this difficult can use enterprise A
as an example (they have researched this in the Introduction to enterprise chapter so they should be able to
relate to it more). Support and scaffold the groups as needed to help them come up with ideas that can be
fitted in to the six steps of the enterprise process.
 Question/prompt the class to think if these ideas can be grouped in some way to generate the steps in the
enterprise process, would some things need to be thought of before others?
 Discuss and collect the ideas as a class and write them on the board, in this way having a first go at generating
the enterprise process collectively. Encourage the more able to try to group the ideas and come up with
names for the different steps/stages of the enterprise process.
 Explain the importance of having and following a process; to make sure all important considerations have
been taken into account.
 Reveal the Enterprise process flow diagram and lead a discussion on the stages of the enterprise process and
their considerations. Students can use Worksheet 1.1 to try and order the stages of the enterprise process.
 Organise the students for Activity 1.1. Divide them in to groups and ask them to come up with a club name,
aim and its main activity. Specify that they need to decide whether they are going to invent an idea or
innovate an existing idea. Remind them to go to through all the questions in Activity 1.1. and make a note of
them on a sheet of paper (see suggested answers section and support and guide students accordingly).
 One group at a time can then present to the class, the name of their club, its main aims and its main activity.
 Direct questions 1–4 from Activity 1.1 to the presenting group so that they can explain the factors they
considered as they relate to the enterprise process.
Types of business organisations

 Introduce the topic and question and assess if the students are aware of some of the business types.
What type of a business is enterprise A?
 List and explain the characteristics of sole traders and partnerships, giving examples of typical businesses that
are set up this way. Can they think of any other examples?
 Ask pupils to compare sole trader vs partnership business types and consider which type would they set up
and why. Gather ideas and make a comparative table on the board.
 Question the students on what the biggest problem faced by such business types might be. Direct the
answers towards unlimited liability and difficulty raising finance. Develop the point further by asking what
businesses could do to raise finance.
 Explain the two types of limited companies and their characteristics and how they can help deal with some of
the shortcomings of a sole trader and partnership.
 Explain the remaining types of businesses and give examples of each.

 In pairs, students can then be asked to do Activity 1.2, making notes while answering questions from the
activity. Choose a few pairs to share their research and their findings.
 Students could also do some research finding a business for each enterprise type.
Project guidance
The content in this chapter touches on all four tasks of the enterprise coursework project. The following points
should be considered within each stage of the enterprise process:
Stage of the enterprise Coursework Points to be considered
process project task
Identifying the Task 1: See project guidance for the introductory chapter.
problem/need/want Identifying your Add more detail to the formal written report to be produced as
enterprise project part of task 1.
Exploring creative solutions Task 1: See project guidance for the introductory chapter.
Identifying your Add more detail to the formal written report to be produced as
enterprise project part of task 1.
Action planning Task 2: Creation of action plan, including:
Planning your  Activities to be done
Students can think about the enterprise project  Distribution of work
action plan at a higher level  Timings of activities
and possibly create  Type of enterprise
subheadings. Details should to
be filled in as they cover more Proposed methods of monitoring progress – is it measurable?
content from the book and What are the risks involved?
apply this to their project.
Think about financial plan: how much finance will be needed, how
will it be raised, what will the expenditures be?
Marketing plan should include what methods of marketing to use?

Implementing the plan Task 3: Students can start thinking how they will implement the plan and
Implementing how they will keep a record of the activities carried out.
your enterprise
project They should remember to keep notes on any negotiations they do.
Monitoring Task 3: Students can think about/make notes on how they might measure
To be filled out as more Implementing the progress of their project and how often should they track their
content is covered and your enterprise progress.
applied to their own project. project
Evaluation of successes and Task 4: Students can start to think about how they will evaluate the
failures. Evaluating your success of the project in any two of these areas:
enterprise  Financial success
To be filled out at the end of project.  Success of the marketing methods used
the project.  Success in planning and implementation of the project/activity
 The success of teamwork.

Worksheet 1.1
The stages of the enterprise process below are not in the right order. Write a number next to them to specify the
order in which they should be carried out.
Action planning
Evaluation of successes and failures
Identifying the problem/need or want
Monitoring
Implementing the plan
Exploring creative solutions

Activity 1.1
With their chosen club in mind, students need to walk through the steps in the enterprise process, noting down
all points that they need to consider.
 A comparative analysis of the possible choices and the reasons why the student chose a particular club should
be explained.
 Possible points to be considered are: venue, timing, skills needed to run the club, how many people will run
the club, who will it be for and which teacher can supervise the club.
 Make sure all people involved in running the club, as well as those attending the club are informed of the
timings, venue and their roles. Track progress against milestones and make quick and well-informed decisions
in case of unexpected events.
 Personal judgement and collecting suggestions, comments and feedback from the other students running the
club as well as the participants should be done. If the success is measurable, like an improvement in maths
ability/participation and success in competitions, then that could be used as well.
Activity 1.2
This is a research-based activity and requires students to have access to the internet or business journals. Your
school may have to facilitate this if some students do not have access to the internet. Students can make a fact
file on the enterprise of their choice, covering the following questions:
 What type of an organisation is it? An extension task could be an analysis of why this type of organisation is
suitable for the enterprise.
 What is the main product/service offered by the enterprise?
 What are the risk factors/challenges faced by the enterprise? Research into how the enterprise has overcome
some of its challenges will be a good extension task to stretch students.
 Is the enterprise successful so far? Students wishing to extend on this should explain how they know it is
successful, possibly backing this up with data/financial figures.
Suggested answers to case studies

Betty Makoni, Zimbabwe
1 The characteristics that make it a social enterprise are:
 It is a non-profit organisation so it does not run to make a profit.
 It has a social aim to protect and promote the rights of the girl child all over the world.
2 The main differences between a sole trader and a social enterprise are the objectives, use of profits and the
liability of the owners:
 The objectives of a social enterprise are to bring about environmental or social change incorporating ethical
values aimed at benefitting the community. A sole trader, on the other hand, aims at making maximum profit.
 Having a social motive, social enterprises will either reinvest their profits back into the business for this
purpose or use it for the benefit of the community. Sole traders, on the other hand, will reinvest all their
profits back into the business for future growth and profit maximisation.
 A sole trader has unlimited liability and is responsible for all debts of his business. However, the
owners/shareholders of a social enterprise, if it is a limited company will have limited liability.

3 The main challenges faced by a social enterprise like the Girl Child Network are:
 limited capital
 gaining collaboration
 understanding different laws and regulations in different countries.
4 The main driving factors behind people working for such an enterprise are:
 job satisfaction knowing they have made a difference to often deprived and people in need.
 personal reasons.
Richard and Maurice McDonald, USA

1 The main advantages to a business are:
 The franchisee has a greater chance of success as it sells a well-known product/service, whereas a sole
trader has to build its image from scratch.
 The franchisor may provide some support to the franchisee by providing advice and training. On the other
hand, a sole trader is the sole owner but may hire some employees. Any sort of additional training may be
too costly for a sole trader.
 The franchisor may contribute funds or do some advertising at national level, reducing the franchisee’s
costs, but a sole trader has to bear all the costs themselves.
 It is easier for a franchisee to gain loans from a bank, as the business is seen to be low risk. A sole trader,
however, often has to rely on personal savings.
2 The challenges that may be faced by a McDonald’s franchisee are:
 The franchisee will have to pay a license fee and possibly a percentage of the revenue to the franchisor.
 The initial costs of setting up a franchise business may be high.
 The franchisee will not have full control over how he can run his business as he will have to follow the
controls set by the franchisor.
3 Some of the advantages to McDonald’s of expanding by offering its franchises are:
 There is a greater chance of success in expanding this way, as the franchisee will work hard as they have
invested in the business.
 It is a cost-effective way to expand as the franchisee also contributes capital.
 The franchisor will receive additional income in the form of ongoing fees paid by franchisees.
4 The role of McDonald’s suppliers is to:
 provide quality and timely supplies to McDonald’s outlets.
 provide the supplies at a reasonable cost to McDonald’s as this will have a direct impact on
McDonalds’ profits.
Suppliers are important stakeholders having an impact on McDonald’s performance as well as being impacted
by its success. The importance of the suppliers carrying out their role is:
 assurance that McDonald’s outlets can make products of high and consistent quality leading to good sales
 reasonable costs for McDonald’s and if sales are good then McDonald’s can have good profits.
 if McDonald’s makes good profit, then they can pay their suppliers on time and continue to engage them
in the future, benefitting the suppliers as well.

Suggested answers to exam-style questions
1 Students should mention one advantage, e.g. cheap, quick and simpler to start, the partners can keep all the
profits and have full control, shared decision making and workload. Students should mention one
disadvantage, e.g. partners have unlimited liability, it is difficult to raise finance, disagreements and conflicts
partners can slow down the business, decision made by one partner is legally binding on all the others.
2 Students should state the type of enterprise their business is and explain two of its features, for example if
their enterprise is a partnership of 5 people they can say:
 their enterprise has 5 partners who share the profit equally.
 the partners are liable for all debt known as unlimited liability.
3 Students should mention any two relevant stakeholders with an explanation for each. The possible
stakeholders can be: suppliers, customers, franchisee company, government, competition, lenders and
employees. The explanation can either mention how the stakeholder has an impact on McDonald’s or how
McDonald’s performance has an impact on the stakeholder. Below are some examples:
Suppliers: these are the businesses that supply the ingredients/products needed by McDonald’s. They should
be paid on time in order to ensure a timely and continuous supply of the needed supplies. Quality and timely
delivery of supplies to McDonald’s food outlets, directly impacts McDonald’s reputation and performance.
Suppliers also gain directly from McDonald’s growth and success because the better McDonald’s performance
the more demand for the suppliers’ goods and the more sales and profits they make.
Customers: they are the consumers of the food produced by McDonald’s. It is very important for McDonald’s
to satisfy its customers as they generate revenue for it by buying its food. For the customers to be loyal to
McDonald’s it is important that McDonald’s provides them good quality food and service at a fair price.
Franchisee outlets: the franchisee has the right to sell McDonald’s products and it benefits from the revenue
it makes from the sales. McDonald’s, the franchisor, has a direct interest in the success of its franchisee as it
gets a percentage of the profits made by the franchisee company.
4 The different stages of the enterprise process should be listed and explained.
 Identifying the problem, need or want: A combination of group discussion, brainstorming and individual
reflection should be used to identify and understand the problem, need or want.
 Exploring creative solutions: When aiming to solve a problem or meet a need, creative and innovative
ways need to be looked at and evaluated.
 Action planning: This involves, making plans for the enterprise activity keeping the costs, budget and
financial capability in mind and breaking down goals into achievable tasks.
 Implementing the plan: To be successful, enterprise activities must be carried out efficiently, effectively,
lawfully and with due regard to health and safety.
 Monitoring progress: Constantly monitoring and evaluating progress against the objectives set out is a
way to make sure that projects are tracked and any deviations identified.
 Evaluation of successes and failures: This involves reviewing the final outcomes against achievement
criteria. This is done in order to draw lessons from the activity and come up with suggestions for
improvement in the future.

5 Students should explain the importance of planning in the enterprise process with reference to their own
enterprise. They could say that planning is an important part of the enterprise process and with respect to my
project, it involved making an action plan which considered the following:
 The costs, budget and financial capability.
 Breaking down goals into achievable tasks.
 Use of resources and team members most efficiently. Allocating roles according to people’s strengths,
skills and attributes to increase the chances of success.
 Setting appropriate timescales and milestones, working towards the goals set out earlier.
6 Students should state the characteristics of a sole trader and then compare and highlight the difference with
the characteristics of a limited company.

3 Action planning
6 Evaluation of successes and failures
1 Identifying the problem/need or want
5 Monitoring
4 Implementing the plan
2 Exploring creative solutions

Chapter 2 Skills and behaviours of enterprising
people
Teaching ideas
In this chapter students should develop an understanding that they are enterprising people, capable of utilising
their knowledge and skills to be a success.
 Introduce students to the idea that they are surrounded by enterprising people. Encourage them to
investigate enterprising people at their school, local community and wider community.
 Define the enterprise skills set for students, supporting this with examples from enterprising people in school,
the local community and wider community. Make use of Activities 2.1 and 2.2 to embed this knowledge and
for students to begin to consider which skills may be more important.
 Encourage students to think of themselves as enterprising people by identifying where they have made use of
their skills in the past and reflecting on how successfully they did so. You could ask them to write a report and
practise the skill of report writing.
 Students should undertake the skills audit. Activity 2.3 suggests a simple skills audit framework.
Project guidance
 The coverage of this chapter links to task 1 of the project in which students will need to identify which skills
they are strong in, how they know they are strong in these skills, and how this will add to the success of their
enterprise project.
 Students will also need to identify some skills in which they are weak, how they know they are weak in these
skills, how these weaknesses might reduce the success of their enterprise project, and how they will address
these weaknesses to minimise their negative impact.

Worksheet 2.1 Summarise the skills of an enterprising person
For an enterprising person that you have researched complete the table below. In the first column list three skills
that the enterprising person has used. In the second column define the skills, then write a summary of how that
enterprising person used that skill. For an example of how to do this, see the case study of Tanya Budd in
Chapter 2.
Name of entrepreneur: ________________________________
Skill Definition of skill and how the entrepreneur used that skill.

Activity 2.1
Skill Definition
Leadership The ability to inspire and encourage others.
Innovation The ability to come up with a completely original idea.
Creativity The ability to develop or improve on established ideas or designs.
Team building To motivate each other to succeed in achieving a common goal.
Managing risk To consider the risks and choose which ones are worth taking.
Communication To make your message understood through a variety of different methods such as
verbally or in writing.
Interpersonal To develop and maintain good relationships with others.
Perseverance To keep trying to succeed no matter what obstacles are encountered.
Self-confidence To be confident in your own abilities and judgements.
Problem-solving To be able to find solutions to obstacles which are encountered.
Activity 2.2
Activity 2.3
Activity 2.4
Activity 2.5
Students’ own answers using Worksheet 2.1 provided.

Arjun Santosh Kumar, India
1 Answers may vary but could include problem-solving, innovation, creativity and managing risk.
2 Students’ own answers.

1 The student should be able to demonstrate that they have researched an entrepreneur and know how that
entrepreneur has applied the enterprise skills to making their enterprise a success; an entrepreneur must be
named but there is no requirement for this to be a well-known entrepreneur.
2 Students should demonstrate how an enterprising person can use the given skills to make their enterprise
successful. Time management should demonstrate how to prioritise actions to make the best of their time.
Problem-solving should demonstrate how the enterprising person has found solutions to obstacles faced.
3 The command word for this question is discuss. Students need to identify which skills they used in their
enterprise project. Then they should give an account of which skills they used well and which they used
less well. Good answers will make judgements about how their communications impacted on the success of
the enterprise.

Chapter 3 Opportunities, risk, legal and ethical
considerations
Teaching ideas
This chapter looks at how opportunities can be taken advantage of and risks managed, as well as the legal
requirements to be followed and the impact an enterprise can have on society in different ways.
 Use the mini case study (Noa and Benny) as a basis to introduce enterprise opportunities. Students research
other examples including some local examples. Present ideas as a poster or newspaper headlines to class.
 Ask students to discuss what risk means to them, and in a group, create their own definition of the term. Use
video material based on famous entrepreneurs to explain the concept of risk. Use Activity 3.1.
 Presentation, using a worked example, outlining the stages of risk management. Give the students a series of
activities to complete, such as carrying out a SWOT and PEST analysis to allow them to become familiar with
the process. Use Worksheets 3.1 and 3.2.
 Use a quiz or activity (such as the tower game in Activity 3.4) to assess their attitude to risk.
 Provide students with a simple local problem with two or three possible solutions. Each group has to outline
the advantages and disadvantages for their solutions. Encourage group members to question ideas and points
made so that when presented to the class they can justify their solution. The class then votes on which
solution they would choose. Hold a class debriefing about the outcome.
 Ask students to write down possible reasons why laws and regulations exist. This can be followed by a teacher
presentation of the types of laws and regulations that exist to protect stakeholders (alternatively you may ask
groups of students to research different areas of law). Students complete a card sorting activity in which they
have to match the effect of a given law on different stakeholders.
 Provide students with local case study examples to discuss issues covered by laws. In each case students have
to explain the effect on different stakeholders.
 Students produce a mind map to write down ideas on the meaning and importance of ethics. Students share
ideas with others. Ask students to identify ways an enterprise can be ethical or not. Record ideas as
newspaper headlines.
Provide students with a scenario – for example, Activity 3.6 – as the basis for a discussion on ethical
considerations.
Project guidance
 The content of this chapter can help with choosing a suitable project.
 Students need to be aware of possible local opportunities for enterprise that might exist. Using methods
such as SWOT and PEST can help students decide whether there is a market for each of their proposed
products or services.
 In the report, students will need to consider both advantages and disadvantages of each option. Students
should be encouraged to collect evidence to support any factors identified as part of the process.

Worksheet 3.1 Understanding PEST analysis
PEST is one of the methods that can be used to help identify risks.
Read the following scenario:
Hannah has an idea to open a shop selling chocolate and sweets which she is going to buy from different
countries around the world.
As part of her planning, she has identified a number of possible issues.
Political Economic
Social Technology
 Listed below are four PEST factors. Match each factor with the correct section.
a Research shows that people are eating more chocolate than sweets for the first time.
b Growth of the internet is making it easier for people to buy products from home.
c The government plans to introduce laws about food quality and standards.
d Interest rates are expected to rise over the next few months.
 For each of the factors, outline one possible effect on Hannah’s enterprise.
a __________________________________________________________________________________
__________________________________________________________________________________
b __________________________________________________________________________________
__________________________________________________________________________________
c __________________________________________________________________________________
__________________________________________________________________________________
d __________________________________________________________________________________
__________________________________________________________________________________
Extension activity
Identify, and outline, other possible PEST factors that might affect Hannah’s enterprise.

Activity 3.1
Party: risks might include: having enough money to finance it, possible school rules, having the right skills/access
to people to organise event, access to venue, equipment (depending on type of party), date might clash with
other events.
School trip: risks might include: having enough money to finance it, possible school rules depending on type of
trip considered, having the right skills/access to people to organise and run the trip, transport issues, date might
clash with other events.
Activity 3.2
Students’ own answers.
Activity 3.3
Points might include:
 Missing the bus could result in being late; being late could mean missing the exam.
 Options might include: setting the alarm clock to get up earlier to be at the bus stop in time; finding
alternative ways to get to school so as not to rely on the bus.
Students’ own choices based on options discussed.
Activity 3.4
N/A
Activity 3.5
 Food: some ingredients might not be allowed, so money will be spent on developing new/amending recipes,
which increase costs. This lowers amount owners receive, and increases workload for employees. Customers
might not be happy with new recipes. Suppliers may lose or gain orders based on ingredients required.
 Advertising: may have to spend additional money on new adverts that are suitable for the new location or
media. Potential lost sales as customers are not aware of product availability. This could mean less money for
owners and more work for employees. The government will need to monitor to ensure rules followed.
Activity 3.6
Students’ own answers. There are both good and bad points to consider.
 Good: benefits created such as jobs, support of community projects. Are other enterprises doing anything in
terms of energy use and waste?
 Bad: materials used to make cups, potential pollution from empty cups. Alternative options may be expensive
and lead to lower profit.

Noa Mintz, USA; Benny Fajarai, Indonesia
Students’ own answers, based on entrepreneurs researched.
Andrew Mupuya, Uganda page 40

Other risks: new competitors who start making reusable bags, changing tastes as people start shopping online,
further changes to law, finding enough suitable people to employ as bags are hand-made, access to materials
such as paper

1 Opportunity – a time or event that makes it possible to do something.
2 A growing population could mean more potential female customers and increased revenue. It creates
opportunity for expansion/entering new markets such as men or children, or providing new products as a way
to increase the target market such as leisurewear for women; ageing population could lead to demand for
new or different products to reflect changing needs for women. These factors are just two examples, students
may identify and explain why other factors will have an impact.
3 Students’ own answers, based on issues arising from their based on risks associated with chosen project.
For example:
Risk of lack of demand as didn't know if people wanted what we were selling, so we carried out some primary
market research to ensure demand.
Not meeting deadlines to submit our order for materials with supplier, therefore used planning skills to
ensure deadline was met.
4 Points might include: increased demand for her clothing, so higher revenue may make it possible to afford to be
ethical; improved brand image, helping to attract more potential customers for her accessories; suppliers may be
willing to offer better terms, so she is able to offer competitive prices to help attract more women to her enterprise.
5 Points might include:
 Employment: provide written contracts, respect and follow laws relating to areas such as unfair dismissal,
discrimination and minimum wages. Time to create and implement policies, increasing costs. May have to
recruit someone to oversee this or spend time that could be used on other issues.
 Marketing, advertising and selling: claims about the product must be truthful/not misleading or leave out
important information, e.g. this chocolate bar is better for you than fruit. So can take longer or be more
expensive to create advertisements. If adverts are found to be illegal then legal action can be taken, e.g.
fines, and could lose potential customers through bad publicity.
 Production: health and safety ensure basic standards that must be followed to ensure safe working
practices and conditions. For example, may have to provide training, extra equipment (e.g. safety gloves,
glasses) or changes to how the enterprise operates which would increase costs and could reduce profits.

1 a – social
b – technology
c – political
d – economic
2 a – help decide on which products to stock – more emphasis on chocolate (need market research)
b – may change how or where she decides to sell her sweets – for example may not open a shop
or may offer option to buy online as well
c – affect which items able to sell (as will need to pass new law which could lower potential demand)
d – possible negative effect on demand as customers may not be able to afford luxury items, or limited
or no adverse effect as may not be high value items.

Chapter 4 Market research
Teaching ideas
In this chapter students will learn about different ways to identify customers and how each method can work for
different enterprises.
 Use Activity 4.1 and ask students whether they have ever been asked or know anyone who has been asked, to
take part in market research. If so, what was it for and what type of questions were they asked? Students
create a word cloud based on words related to market research.
 Students in groups discuss what information a business needs. Present information as a leaflet.
 Divide students into groups to research and take notes on different methods. Present information as a table -
headings: primary or secondary, advantages, disadvantages and when use. Use Activity and Worksheet 4.1 to
explore this further.
 Show students a number of possible market research questions and discuss what makes a good question.
Then provide students with an scenario such as Activity 4.3.
 In small groups, students complete a simple research activity for a given task. An example could be demand
for a particular product or service in school. Each group could then present their results to the class. Present
findings in the form of charts and graphs.
Project guidance
 Students will need to write a report about choosing a suitable project. In the report they will be expected to
collect and analyse data, and use the results gathered to help make decisions about which project to choose.
 A good source of evidence is market research. Methods such as questionnaires are especially useful, as it will
allow students to find out exactly what they want to know. The questionnaire does not have to be too long;
the important thing is that they find out what they need to know.
 Secondary sources can be helpful. If used, make sure a copy of the data is included in the appendix, and the
specific data used to support points is quoted in the report.
 Information should be gathered for all options considered as the evidence can be used to support or reject
an idea.

Worksheet 4.1: Selecting a method of market research
Diego has always been creative. When he was young, he would make small gifts for his family and friends.
Everyone liked what he made, and many wanted to know where they could buy similar items. This made Diego
think about the possibility of setting up his enterprise.
Diego has identified three possible methods of market research he could use.
Using the following criteria, score each method on a scale of 1–5 (where 1 is not suitable and 5 is very suitable).
How suitable is the method Interview Questionnaire Secondary research

in terms of:
Cost
Suitability for enterprise
Suitability for reaching

potential target market
Any other factors

(please state)
1 On you own, complete the table. Based on this information, which method do you think Diego should use?
2 Discuss your answers with others in your class, and see if they had the same answers as you.
Additional activity:
Write a short summary explaining your final choice. Give a reason why you think this method is better than the
other options.

Asha's market stall
1 Questions might include:
 Which of the following products are you interested in buying (phone cases, pens, games, other)?
 Where do you normally buy your phone cases?
 How often do you buy these products?
 How much would you be willing to pay for a phone case?
2 Options include:
 interview current customers of her market stall – as easy to access and able to obtain more
detailed answers
 observations – watch customers (in street) or at nearby shops to see which style of cases are popular.
 secondary, e.g. statistics on number and who uses phones to assess potential size and nature of market,
newspaper or internet articles.
3 Student’s own answers based on project.

Activity 4.1
Activity 4.2
Methods might include:
 Garden tidy: questionnaires/surveys – these are a relatively cheap way to find out the views of a wide range
of people in area, if everyone is asked the same set of questions the results can be presented easily in charts
to interpret; interviews enable students to ask more detailed questions but it will take longer to collect
information; government statistics – students can find out the number of people with gardens, the data is
free to access, but it will not tell you if these people want to use a garden tidy service.
 Retailer: questionnaires/surveys (see explanation above); government statistics to identify the
demographics, income of different areas to find which match desired profile; market research agencies – a
large retailer may be able to afford to pay for their expertise so more able to ask the correct type of people
and questions.
Activity 4.3
 Oris will be able to find out if people like orange, but it does not cover every possible option, so is of limited use.
Oris could ask ‘Which flavour drinks do you like?’ (and include a list of possible flavours and ‘other’ option).
 Q2 is not helpful as it is trying to find out too much information. It covers two different groups, so any answer may
refer to children, adults, or both. The question could be split into separate questions, such as ‘How popular do you
think this product will be with children?’ and ‘How popular do you think this product will be with adults?’.
 The use of the word ‘always’ is unhelpful. As it is written, nearly everyone will be forced to say no, as they
may have missed breakfast once. There is a risk that truthful answers might not be given from everyone, as
people may think that they should say yes. Instead, the question could be, ‘How many days a week do you
usually have breakfast?’.

Activity 4.4
This can be presented as two separate charts or as a single chart. It is important that data is clearly presented,
easy to read and clearly labelled. For example:
Chart to show number of people walking past a given location and the number of people eating.
Activity 4.5
 Response explains why the person asked the question, which is neither analysis nor necessary. Reviews data
and states how they used information, but does not develop either point.
 For example: the result shows that 45 businesses offer small bags compared with 32 business who offer
medium bags and 20 businesses who provided large bags. This shows that small bags are the most used bags,
so could offer a larger potential market. Medium bags are also an option as 33% of businesses offer them.
Large bags are the least popular, with 21% of businesses using them, so these would gain fewer sales.

1 Information about the market, customers or competition that has already been collected.
 find out about customer needs so can offer right type of hand cream to increase potential sales
 help make decisions such as whether to start up her skincare business or not so does not waste money.
3 Students’ own answers based on methods chosen. Choices are likely to include questionnaires, interviews,
observations, focus groups as well as secondary research. Students should discuss each option (both positive
and negative points), and link points to this skin care enterprise. Decisions should be made and supported.

4 Students’ own methods might include:
Questionnaires and surveys – relatively cheap and can get lots of information but need to make sure you ask
right questions and appropriate people.
Interviews – more detailed information but fewer people asked so could lead to bias as not representative
and takes a long time to do.
Observations – get a good insight without interrupting or influencing behaviour but cannot ask questions.
Secondary sources such as internet or government publications such as census – free but information likely to
have been collected for another purpose so may not be relevant.
Answers should make clear references to their own project in terms of methods used and the analysis should
include detailed explanations of all points made before making clear supported decisions as to whether the
methods used were successful or not at gathering the information required.

1 Students’ own answers, but might include:
 Cost: interview the highest, and secondary research cheapest.
 Suitability for enterprise and reaching potential target market: interview (more detail) and questionnaire
(more people) so both high, secondary lowest by far.
 Other factors may relate to time available (secondary research is readily available and interviews take
longest), what want to know – could work for any depending on required information.

Chapter 5 Business planning
Teaching ideas
In this chapter students will learn how different enterprises will have different aims and objectives, and how they
use action plans and business plans to achieve them.
 Introduce the idea of business objectives and how these influence the activities of enterprises. Use an activity
in which students have to match up a list of objectives to a range of well known enterprises. Use Activity 5.1.
to investigate objectives of local enterprise.
 Give students a challenge or target to achieve. For example, using Activity 5.2 in class, identify steps that need
to be taken to complete it. Use this activity as the basis to introduce the concept of action planning and the
stages involved in constructing one (see Figure 5.2).
 Use Activity 5.3 or another example as the basis to explore why it is necessary to plan for potential problems.
 Students research and make notes on the importance of monitoring, and updating action plans. Use a quiz
based on methods and reasons for monitoring to check understanding.
 Give students a copy of a simple business plan such as Suki's Noodle Bar. Students identify the main parts and
discuss why the information might be helpful.
 Students in groups are given a scenario for a possible enterprise they could set up at school such as a food
stall. Each group is given a blank business plan template to complete.
Project guidance
 Remind students that they are expected to prepare an action plan for their project. The length and level of
detail included will depend entirely on the size and type of project selected. If they are working as part of a
group, they should have a larger-scale project so everyone has a chance to play a meaningful role in it.
As such, the action plan is likely to involve many more stages. The important thing to remember is that the
action plan should be suitable for the scale of project, and detailed enough to help them set up, run and
monitor what they need to do.
 Remind students to always prepare the action plan before they start the project. This will allow them to be
able to identify potential problems and decide how each individual plans to manage each one. In the project
write-up, students will be expected to discuss a number of possible solutions to each problem identified
before making a decision.
 Students do not need to produce a business plan for their project, but they need to understand the purpose
and importance of business plans.

Worksheet 5.1 Creating an action plan
Instructions:
For their enterprise project, Ali, Harry and Leena have chosen to sell brownies at a school Enterprise Day. At one
of their meetings, they wrote down key actions on pieces of paper, and now must decide on a logical order.
1 Can you help them work out the order for these activities?
2 Using the action plan template on page 66 of the coursebook, construct an action plan based on this
information, using today’s date as a starting point. To do this, include completion dates, and for each action
suggest one way to monitor it.

Activity 5.1
Student’s own answer, based on local businesses investigated.
Activity 5.2
Student’s own answer, based on options identified.
Activity 5.3
Olivia could use the following solutions:
 use different fruits that may be plentiful, so changing the type of jam she makes
 buy fruit from elsewhere; this may be more expensive, so she would have to allow for this in her pricing
 use frozen fruits and adjust her recipe
 contact her supplier and find out how much fruit he can provide her – she only needs enough for 150 jars,
so there may be plenty of available fruit for the size of her order.

Suki’s Noodle Bar
 Market research: shows potential customer demand for her noodle bar, which could help determine whether
the project is likely to be successful; help set prices for each dish; help decide correct location from observing
how many possible customers there are in a given location.
 Previous experience: shows that Suki has worked as a chef, so knows what she is doing. It may give the bank
manager more confidence in her ability to manage a noodle bar.

1 An action plan is a list of tasks that need to be completed for a set goal to be completed.
2 Objectives might include: increase profit by cleaning more houses, spread risk by offering office cleaning,
provide good service as shown by customers being pleased, survival as only a small start-up business
3 Possible answers might include: the original objectives were completed so new targets need to be set; costs
change so there may be a need to adjust figures/prices to ensure can break even; changes in competition may
mean elements of the marketing mix need to be altered to stay competitive.
4 Areas to discuss could include:
 As Carlos is looking to expand, he should plan ahead, as the bank would expect to see a business plan to
support any request for finance such as new equipment. This shows planning, so increases the chances of
getting the amount needed.
 Help CC plan when hiring employees, including: how many friends should Carlos employ? How much will it
cost, and how much can he afford to pay?
 Help identify risks linked to expansion. Is there a large potential market for office cleaning? Already has
experience of cleaning houses so may already know most of the information.
 Business plan takes time to prepare which means less time to focus on day-to-day decisions.

5 Student’s own answer. Areas where planning might be important could include: market research, planning
for negotiation, making or buying in the product.
Students should explain, using appropriate examples from their individual project, and in as much detail as
possible how and why planning helped to carry out each of the activities discussed.

There is no set order. One possible solution is:
1 Research types of brownies – monitoring: meeting
2 Arrange permission – update at meeting
3 Raise finance – update at meeting
4 Produce advertising poster – testing to check if fit for purpose
5 Advertise brownie stall – ask people if seen posters
6 Buy ingredients for brownies – shopping list to check against
7 Set up stall – to do list
8 Make brownies – testing
9 Sell brownies – record sales on sheet
10 Clearing up – to do list
11 Record accounts – sales numbers

Chapter 6 Sources of finance
Teaching ideas
In this chapter students will learn how different sources of finance can be appropriate for enterprises depending
on the situation.
 Introduce students to the idea that enterprises need to be able to access money for a variety of reasons
throughout the lifetime of the enterprise.
 Bring in the idea that enterprises have access to lots of different potential sources of finance; however, they
must find the one that suits their enterprise best given their needs at that time. Thorough research is needed
as enterprises so that they don’t find themselves in financial difficulties.
 Go through all sources of finance that are suitable for a start-up enterprise, ensuring that students
understand the advantages and disadvantages of each source. Table 6.1 will support this; however, it is
generic and requires the addition of local context.
 The Samphire Festival case study shows how crowdfunding was a good source of start-up finance for
that enterprise.
 Encourage students to investigate other enterprises and their sources of start-up finance. This could be
turned into local case studies.
 Go through all sources of finance that are suitable for the continued trading and expansion of an enterprise,
ensuring that students understand the advantages and disadvantages of each source. Table 6.2 will support
this; however, it is generic and requires the addition of local context.
 Activity 6.1 could be used to check learning on sources of finance and could be extended by asking students
to add the advantage and disadvantages of each source.
 The Samphire Festival case study shows how crowdfunding was a good source of start-up finance for that
enterprise. Create local case studies for students to engage with and where other sources of funding have
been used. You could create exam-style questions on the local case studies to check students’ knowledge of
sources of finance.
 To get students thinking about sources of finance you could replicate the tables found in chapter 6, cut them
up and get students to match up the title, description, advantages, and disadvantages.
 You could engage with local providers of finance, such as banks, to come and talk through a variety of options
with students, and students could have a look at/have a go at completing the types of forms that real
enterprises would need to complete. Alternatively the provider of finance might want to see financial
projection presentations of students to give them advice before the enterprise activity is undertaken.
Project guidance
 The coverage of this chapter links to task 2 of the project in which students need to show that they have
research potential sources of finance for their enterprise activity and chosen the one that is best for their
circumstances, justifying this choice.
 In task 4 students may evaluate the success of their choice of source of finance.

Activity 6.1
Leasing: You get to use a piece of equipment for a monthly fee, but the equipment belongs to the leasing
company.
Bank overdraft: A form of short term lending by the bank when there is no money left in the enterprise’s
bank account.
Crowdfunding: Asking a large group of people for small amounts of money in return for either a stake in the
company, or for a reward. It encourages investors by using websites and social media.
Personal savings: A small investment in a business which normally paid back plus some interest (a return
on investment)
Bank loan: A larger, longer term, investment in an enterprise which is paid back with an agreed rate of interest.
Retained profits: Money that is kept aside from the profits of the enterprise so that it can be reinvested into the
enterprise when it is needed.

1 Retained profits is money that is kept aside from the profits of the enterprise so that it can be reinvested into
the enterprise when it is needed.
2 Students should recognise that crowdfunding was used in this start-up enterprise, and describe crowdfunding
as asking a large group of people for small amounts of money in return for either a stake in the company, or
for a reward. It encourages investors by using websites and social media. Other sources of finance suitable for
start-up enterprises include personal savings, investment from family and friends, bank or building society
loans, and other listed in Table 6.1 in the coursebook.
3 Students should pick a suitable source of finance for continued training, probably picking one from Table 6.2
in the book (however, other suitable sources of finance may be accepted). It should be simply described with
one advantage and one disadvantage.
4 Students should give a very thorough evaluation of the suitability of the source(s) of finance used, apply
knowledge and understanding of sources of finance using examples from their own enterprise project or
another relevant enterprise. For the highest marks, their justification of the decision needs to be explicit
and logical.
5 Students should be able to compare the advantages and disadvantages of various sources of finance
applicable to the situation, and suggest why the bank loan would be the most suitable. For the highest marks
students should explicitly and logically justify why a bank loan would be the most suitable.

Chapter 7 The concept of trade credit
Teaching ideas
In this unit students should develop an understanding of trade credit and its advantages and disadvantages
for enterprises.
 Introduce students to the idea of credit where an enterprise may receive goods from their suppliers,
make their goods or service, sell it, and use the proceeds to pay off the debt to the supplier.
 Go through trade credit agreements between enterprises and their supplier(s), ensuring that students
understand the advantages and disadvantages to both parties.
 Scrutinise the simple trade agreement at the start of chapter 7 in the coursebook (if possible use a real trade
credit agreement that is held by the school) and use this to:
 Introduce the idea of discounting for early repayments and penalties for late payments.
 Go through trade credit agreements between enterprises and their supplier(s), ensuring that students
understand the advantages and disadvantages to both parties. Use scenarios to help illustrate the
advantages and disadvantages. For example:
o How would the school benefit from paying their trade credit early?
o What would the consequences be for the school if it were not able to pay their trade credit
agreement until 45 days after they had the goods?
 Go through trade credit agreements between enterprises and their customers, ensuring that learners
understand the advantages and disadvantages to both parties. Use scenarios to help illustrate the
advantages and disadvantages for example:
o Why would a supplier offer the school trade credit?
o What issues would a supplier face if the school turned out to be a bad credit risk and just didn’t
pay for the goods/services they had received?
 Go through trade credit agreements between enterprises and their customers, ensuring that students
understand the advantages and disadvantages to both parties.
 Consider inviting in a guest speaker from a local business to talk about the advantages and disadvantages to
them of offering trade credit.
 Establish learner understanding of the key words of this topic by using the trade credit match-up activity in
Worksheet 7.1
Project guidance
 Ensure that students are aware that trade credit is unlikely to be a source of finance for their enterprise
activity; however, it may be mentioned in task 4 as a potential source of finance if they were to continue their
enterprise and can establish the enterprise as creditworthy.
 There may also be an opportunity for students to negotiate trade credit deals with suppliers for their
enterprise, especially the school. For example, students might wish to rent a space in school to run their
enterprise but could negotiate to pay for this after the enterprise has run.

Worksheet 7.1: The concept of trade credit.
Activity: Match the key terms with their definitions.
Instructions:
Below are a list of key terms and definitions for the topic of Trade Credit which have become muddled up. You
must match the skill with the correct definition.
Key term Definition
A Suppliers 1 A person or organisation that buys
goods/materials or services from an
enterprise.
B Trade payables 2 The amount of money owed to the enterprise
by customers who have had goods or services
but not yet paid for them.
C Revenue 3 The movement of money in and out of an
enterprise.
D Customer 4 The amount of money owed by the enterprise
to suppliers, such as for raw materials
received but not paid for.
E Trade receivables 5 Something that an enterprise might do for
their customers (such as cleaning their
windows).
F Goods 6 The money that comes into an enterprise from
selling goods and services.
G Service 7 A person organisation that provides the
goods/materials or services that an enterprise
needs in order to operate.
H Cash flow 8 The finished products sold by an enterprise to
its customers.

Activity 7.1
Advantages Disadvantages
Enterprise and its suppliers The enterprise is able to buy goods The enterprise will pay a penalty for
now and pay later from revenue. late payments.
The enterprise may get a discount for Suppliers may have to spend
early payment. time chasing late payments which
costs money.
Trade credit encourages repeat
business for suppliers.
Enterprise and its customers The enterprise can encourage loyalty The enterprise must take a risk of late
and repeat business by offering trade payment or non-payment. This will
credit deals. impact upon the finances of the
enterprise.
Customers are able to buy goods now
and pay later using revenue. There are additional costs to the
enterprise in chasing late or
Customers may get a discount on non-paying customers.
goods for early payments.
Customers will face a penalty if they
pay late.

1 Trade credit means that an enterprise can buy the items that it needs and then have an agreed number of
days in which to pay the supplier.
2 Students should explain that it is unlikely that a start-up will get trade credit because it will not have
established its capacity to pay debts. This is because potential lenders would look at the financial records of
the business to establish this capacity and a start-up will have no/little financial record. However, a start-up
enterprise may be able to increase the likelihood of gaining trade credit if it properly researches and forecasts
its finances. Verifiable forecasts may encourage lenders to allow small amounts of trade credit. Once the
enterprise has proven it can pay these small amounts of trade credit, lenders will be more willing to increase
the trade credit offered.
3 Students should offer an explanation of the advantages and disadvantages of trade credit and apply their
information explicitly and logically to enterprises, suppliers and customers. Students should be making use of
the answers of Activity 7.1.

A - 7; B - 4; C - 6; D - 1; E - 2; F - 8; G - 5; H - 3.

Chapter 8 Cash flow, break-even and
income statement
Teaching ideas
In this chapter students should develop an understanding of cash flow, break-even and income statements.
In addition, they need to learn how to create and interpret these financial documents so that they are able to
evaluate the financial performance of an enterprise.
 Introduce students to the concept that enterprises need to forecast, analyse, evaluate and manage their
financial situations. Also ensure that students understand that other organisations will be interested in the
finances of an enterprise, such as investors, lenders, the government (for taxation purposes), suppliers
and competitors.
 Use Activity 8.1 as a prompt for students to consider how money flows in and out of an enterprise.
 Explain the concept of cash flow forecast as a tool used to predict what can happen to the finances of the
enterprise in the short term. Ensure that students grasp that the forecast only shows the cash flow of the
business, it does not predict profit and loss.
 Use the case study on David’s low-calorie cakes to help develop students’ understanding of how a cash flow
document is created and how it can be used to forecast how changes impact on the cash position of the
enterprise.
 Use Activity 8.2 to show students how to create a simple cash flow.
 Demonstrate how break-even is used by enterprises to work out how many units they need to sell before
they have covered all their costs, that selling less than this means the enterprise makes a loss, and selling
more than this means the enterprise is making a profit.
 Use Activity 8.3 to check students understand how to calculate break-even.
 Go through how the income statement is a historical record of the finances of the enterprise, showing profit
or loss. It is a vital document that will be scrutinised by a variety of stakeholders.
Project guidance
As part of their planning in task 2, students may want to create a cash flow forecast and do a break-even
calculation. In task 4 they can compare the real figures of their enterprise to their predictions, give reasons for
deviations, and establish how they can make their predictions more accurate in future. Students may also want to
create an income statement to support their financial evaluation and analysis in task 4.

Activity 8.1
In = sales revenue/income/receipts, interest on money in bank, loans, grants.
Out = wages/salaries, overheads (electricity, gas, phone), purchase of materials for production.
Activity 8.2
Cash flow forecast for the period January to June: Antoine's Enterprise
Jan Feb Mar Apr May Jun Total for the period
Income
Capital RWF 109,302.00 RWF 109,302.00
Loan RWF 54,651.00 RWF 54,651.00
Sales revenue RWF 98,372.00 RWF 98,372.00 RWF 98,372.00 RWF 98,372.00 RWF 98,372.00 RWF 98,372.00 RWF 590,232.00
Total income RWF 262,325.00 RWF 98,372.00 RWF 98,372.00 RWF 98,372.00 RWF 98,372.00 RWF 98,372.00 RWF 754,185.00
Expenditure
Equipment RWF 163,954.00 RWF 163,954.00
Stock RWF 54,651.00 RWF 54,651.00 RWF 54,651.00 RWF 54,651.00 RWF 54,651.00 RWF 54,651.00 RWF 327,906.00
Other expenses RWF 21,860.00 RWF 21,860.00 RWF 21,860.00 RWF 21,860.00 RWF 21,860.00 RWF 21,860.00 RWF 131,160.00
Total expenditure RWF 240,465.00 RWF 76,511.00 RWF 76,511.00 RWF 76,511.00 RWF 76,511.00 RWF 76,511.00 RWF 623,020.00
Opening bank balance RWF - RWF 21,860.00 RWF 43,721.00 RWF 65,582.00 RWF 87,443.00 RWF 109,304.00 RWF -
Total income RWF 262,325.00 RWF 98,372.00 RWF 98,372.00 RWF 98,372.00 RWF 98,372.00 RWF 98,372.00 RWF 754,185.00
Total expenditure RWF 240,465.00 RWF 76,511.00 RWF 76,511.00 RWF 76,511.00 RWF 76,511.00 RWF 76,511.00 RWF 623,020.00
Closing bank balance RWF 21,860.00 RWF 43,721.00 RWF 65,582.00 RWF 87,443.00 RWF 109,304.00 RWF 131,165.00 RWF 131,165.00
Activity 8.3
 Fixed costs = $5000
 Variable costs per unit = $10
 Sales price per unit = $20
 5000 ÷ (20 – 10) = 500 units

David’s low-calorie cakes
1 Six months from January to June.
2 The column on the far right-hand side shows the totals of each row for the 6-month period. It is used to do an
overall calculation for the period of the cash flow forecast, which should create a closing bank balance that is
equal to the closing bank balance for the final month. Students should note that the opening bank balance for
the period is zero, the same as it is for January, and not the total of the opening bank balances for the period
(this is a common error).
3 The closing bank balance is increasing by $500 a month.

4 Yes, the enterprise would still have a positive bank balance. In January the bank balance would start at $2,000
and after 6 months it would be at $4,500. See below:
Cash flow forecast for the period January to June: David's Low Calorie Cakes
Income
Capital $ 17,000.00 $ 17,000.00
Grant $ -
Sales revenue $ 20,000.00 $ 20,000.00 $ 20,000.00 $ 20,000.00 $ 20,000.00 $ 20,000.00 $ 120,000.00
Total income $ 37,000.00 $ 20,000.00 $ 20,000.00 $ 20,000.00 $ 20,000.00 $ 20,000.00 $ 137,000.00
Expenditure
Baking equipment $ 4,000.00 $ 4,000.00
Store fixtures and fittings $ 7,000.00 $ 7,000.00
Office equipment $ 3,500.00 $ 3,500.00
Marketing $ 2,500.00 $ 1,500.00 $ 1,500.00 $ 1,500.00 $ 1,500.00 $ 1,500.00 $ 10,000.00
Raw materials $ 12,000.00 $ 12,000.00 $ 12,000.00 $ 12,000.00 $ 12,000.00 $ 12,000.00 $ 72,000.00
Staff wages $ 3,000.00 $ 3,000.00 $ 3,000.00 $ 3,000.00 $ 3,000.00 $ 3,000.00 $ 18,000.00
Utility bills (gas, water, electric) $ 3,000.00 $ 3,000.00 $ 3,000.00 $ 3,000.00 $ 3,000.00 $ 3,000.00 $ 18,000.00
Total expenditure $ 35,000.00 $ 19,500.00 $ 19,500.00 $ 19,500.00 $ 19,500.00 $ 19,500.00 $ 132,500.00
Opening bank balance $ - $ 2,000.00 $ 2,500.00 $ 3,000.00 $ 3,500.00 $ 4,000.00 $ -

Total income $ 37,000.00 $ 20,000.00 $ 20,000.00 $ 20,000.00 $ 20,000.00 $ 20,000.00 $ 137,000.00
Closing bank balance $ 2,000.00 $ 2,500.00 $ 3,000.00 $ 3,500.00 $ 4,000.00 $ 4,500.00 $ 4,500.00
5 In January the bank balance would be $2,000. However, by February it would have dropped by $1,500 to
$500. This $1,500 a month drop would continue happening so that at the end of the period the bank balance
would be –$5,500. See below:
Cash flow forecast for the period January to June: David's Low Calorie Cakes
Income
Capital $ 17,000.00 $ 17,000.00
Grant $ 2,000.00 $ 2,000.00
Sales revenue $ 18,000.00 $ 18,000.00 $ 18,000.00 $ 18,000.00 $ 18,000.00 $ 18,000.00 $ 108,000.00
Total income $ 37,000.00 $ 18,000.00 $ 18,000.00 $ 18,000.00 $ 18,000.00 $ 18,000.00 $ 127,000.00
Expenditure
Baking equipment $ 4,000.00 $ 4,000.00
Store fixtures and fittings $ 7,000.00 $ 7,000.00
Office equipment $ 3,500.00 $ 3,500.00
Marketing $ 2,500.00 $ 1,500.00 $ 1,500.00 $ 1,500.00 $ 1,500.00 $ 1,500.00 $ 10,000.00
Raw materials $ 12,000.00 $ 12,000.00 $ 12,000.00 $ 12,000.00 $ 12,000.00 $ 12,000.00 $ 72,000.00
Staff wages $ 3,000.00 $ 3,000.00 $ 3,000.00 $ 3,000.00 $ 3,000.00 $ 3,000.00 $ 18,000.00
Utility bills (gas, water, electric) $ 3,000.00 $ 3,000.00 $ 3,000.00 $ 3,000.00 $ 3,000.00 $ 3,000.00 $ 18,000.00
Opening bank balance $ - $ 2,000.00 $ 500.00 -$ 1,000.00 -$ 2,500.00 -$ 4,000.00 $ -

Total income $ 37,000.00 $ 18,000.00 $ 18,000.00 $ 18,000.00 $ 18,000.00 $ 18,000.00 $ 127,000.00
Closing bank balance $ 2,000.00 $ 500.00 -$ 1,000.00 -$ 2,500.00 -$ 4,000.00 -$ 5,500.00 -$ 5,500.00

6 There are several steps that could be taken such as:
 Investigate the variable costs. If less sales are being made it is likely that less products are being made
so variable costs may be reduced.
 Consider increasing marketing in the short term to increase sales.
 As less is being sold, the enterprise could produce less and therefore may not need to pay so much for
utilities (water, gas and electricity).
 Other budgets such as staff wages or marketing could be reduced, bearing in mind laws about minimum
pay that the enterprise needs to abide by; however, reducing marketing may mean that sales drop further.

1 Profit is when the revenue of an enterprise exceeds the expenditure of an enterprise.
2 Variable cost = cost of sales (directly linked to production); fixed cost = wages, rent, business tax, insurance,
advertising, administrative expenses (not directly linked to production).
3 Students should explain that a cash flow forecast uses information about all the cash that comes into an
enterprise and all the cash that goes out of an enterprise to predict what might happen in its short term
financial future. For the top mark band students should give examples of how the cash flow forecast is used.
4 Student correctly completes the income statement. One mark for each correct calculation.
Mika’s florist.
Income statement for the year ending 31st December 2017
Income:
Sales revenue $ 69,500.00
Cost of sales $ 36,000.00
Gross profit $ 33,500.00
Expenditure:
Wages $ 20,700.00
Rent $ 7,400.00
Business tax $ 5,300.00
Insurance $ 1,200.00
Advertising $ 850.00
Admin expenses $ 1,000.00
Net Profit – $ 2,950.00
5 Students could consider effects of poor record-keeping on the stakeholders in the enterprise. For example:
 The enterprise may not be able to prove to lenders it can pay loads.
 Suppliers may not be willing to provide trade credit if an enterprise cannot prove it is able to pay its bills.
 Government will want to investigate records to ensure the right amount of tax is being paid.
For the highest marks, students must consider the implications to the enterprise.

Chapter 9 Marketing
Teaching ideas
In this chapter students will learn how marketing can be used to achieve different aims for an enterprise, and the
variety of methods that can be used.
 Start with a simple quiz or discussion using Activity 9.1 to find out what students understand by the term
marketing, and why it is important.
 Students research examples of marketing used by local enterprises and explain the purpose behind this
marketing – information is presented to the whole class.
 Teacher presentation about customer retention and why it is important. Use Activity 9.2 to explore students’
personal experience of brand loyalty.
 Students research methods used by local and national enterprises, and present information to the class.
Alternatively, invite local entrepreneurs to discuss customer retention within their enterprise.
 Students produce a simple customer satisfaction survey that can be used in school (Activity 9.3).
 Before starting this section, ask students to collect examples of marketing communications used by different
enterprises. In pairs or small groups ask students to discuss how effective they think each one is. Each group
can report findings back to the class.
 As a class, discuss and agree a checklist of factors to consider choosing a method of advertising. Students can
be given activities where they have to choose the most suitable methods of promotion for an enterprise and
give reasons for choice.
 Students produce an example of a marketing communication for a given scenario, for example a simple
classroom item. Each student should give a short presentation to the class (or smaller group) showing the
marketing communication produced and explain their choice.
Project guidance
 Students could choose the marketing communication option as part of their project. If so, everyone will have
to give a short individual presentation outlining their proposed options. In addition, they will have to provide
a detailed written explanation. Students should not rely on the slides to provide the level of detail required,
as slides should only be used to summarise and not explain points.
 Students should select no more than 3 or 4 different options to discuss. It is important that student develop
their explanations, showing how and why each method might be suitable for their specific project. Students
should be also be discouraged from providing general lists of advantages and disadvantages. For each point,
they need to explain why it would be relevant to their project.
 Students should be encouraged to produce their own examples of marketing communication for their project.
Although not assessed, the materials can still be used as evidence. For example, enterprise skills such as
creativity and as evidence when evaluating marketing communication.

Worksheet 9.1
Marketing communications and the law
You must be careful what you say or suggest when creating your marketing communications.
Read the following examples of marketing communication. Which ones do you think are likely to be legal? Can
you find some real examples of legal and non-legal marketing communications from your country?
People would do anything for

one of our phones cases
Steal yourself away and visit our

stall
Additional activity
Prepare a set of simple guidelines to help enterprises to advertise legally in your local area.

Activity 9.1
Students’ own answers based on idea of anticipating, identifying and satisfying customer needs. Reasons might
include: find out about level of demand, what customers like or dislike in terms of prices, colours, styles, find out
competitors products and prices, information about prices, busy times and locations
Activity 9.2
Activity 9.3
Students’ own answers. Questions will depend on the topic selected, but may include questions such as: how
satisfied are you with [X], what did you enjoy most about [X], how likely are you to use/buy [X] again, would you
recommend [X] to others?
Activity 9.4
Students own answer. Points to consider might include: sounds and movement, use of colour and images, key
words and phrases, who is promoting the product, what is being advertised.
Activity 9.5
Students’ own answers based on the methods discussed.
Activity 9.6
Students’ own answers. Features may include:
 examples of products
 location of her stall and times
 banner indicating that this is a new product.
Activity 9.7
There are a variety of possible options for both scenarios. Answer depends on options discussed. For example:
Food retailer – options could include:
 television
 newspapers
 social media campaigns
 posters.
T-shirt seller – options could include:
 leaflets and flyers
 social media campaigns
 word of mouth
 posters.

Customer retention strategies
Gabriel's food stall

 help ensure steady income
 ‘free’ word of mouth advertising if customers are happy
 reduced cost of advertising.
2 Advantages might include:
 encourage customers to return increasing brand loyalty
 increase frequency of customers sales/income
 can help attract new people to visit, leading to additional sales.
Disadvantages might include:
 costs money, as giving one drink away for free cuts into profit margin
 can damage image – as people may think it’s a cheap product.
3 Methods could include:
 improve quality
 widen range of products
 offer good service
 resolve complaints quickly
 ask for feedback
 provide detailed information about product.
The final choice will depend on the options discussed.

1 Customer retention measures how loyal customers are to an enterprise (and the likelihood of them buying its
products or services again).
2 Options could include:
 communicate with customers so they remember your business when they next need weeds removing
from their garden
 widen range of services offered such as painting fences in addition to garden tidy so customers can do
not need to go to other businesses to get work done
 offer good service when cutting the grass so customers want to use CC again
 resolve any complaints quickly so that
 ask for feedback about the gardening work done so that customers think their views are
valued / important
 loyalty or reward schemes – such as 1 free grass cut 4 times so customers have an incentive to return

3 Factors could include:
 cost – as a new enterprise will not have a lot of finance available
 Clocation – as local should focus his marketing on this area
 target market – as it includes people over the age of 50, methods need to be suitable and in locations
where target market likely to see it.
Methods might include: leaflets and flyers, posters, social media, announcements, word of mouth. Points to
consider when evaluating effectiveness might include: cost, where and when used, ability to change, how well
seen or influence it had on your customers
5 Any option possible. See Table 9.1 (pp.110–11) for advantages and disadvantages of the different methods of
marketing communication. For example, social media is cheaper than other options, but will people over
50 years old use/see it? Posters can target a certain location, but can be damaged easily. Newspaper adverts
can be kept for future reference but fewer people read papers these days. The student’s decision must be
supported, and should be based on factors discussed.

Note answers are subject to laws and regulations in own country
1 ● Wording is fine, but care is needed as image suggests the products are handmade, which may
be untrue.
 Great prices: is legal as long as enterprise does honour the guarantee.
 Brownies: legal, this is clearly only an opinion.
 Phone cases: illegal, as appears to encourage people to commit criminal acts to obtain its products.
 Football: possibly illegal in some countries as it discriminates against girls.
2 Students’ own answers based on local circumstances.

Chapter 10 Negotiation
Teaching ideas
In this chapter students will learn about negotiation and its different stages.
 Introduce negotiation using online video clips. See resources for suggestions. Students write a tweet or text
message summary of what negotiation is. Students list possible reasons when negotiation might be used.
 Discuss the stages of negotiation. Students research and note the main features of each stage and produce a
flow chart or leaflet suitable for display in the classroom.
 Use Activities 10.3–10.5 to practise skills needed for negotiation.
 Use Activity 10.6 to allow students to practice their negotiation skills.
Provide students with a simple scenario – for example a price negotiation (see resources). Pairs of students
have to prepare and then carry out a brief negotiation.
 Invite a person from a local enterprise or organisation to talk to the students about how they approach
negotiation or arrange for the person take part in a series of practice negotiations.
Project guidance
 Students must provide a plan for negotiation and carry out their own actual negotiation as part of
their project.
 Negotiation involves a range of skills, including listening and pitching. These skills often take time to develop
so it is important to ensure that students have plenty of opportunity to practise and develop these skills.
 Remind students that the outcome of the negotiation does not need to be successful to be included as
evidence for the project.

Worksheet 10.1: What to say when negotiating
During any negotiation, whatever happens, you should always be polite. How you say something is just as
important as what you say.
Below is a list of phrases that can be used to show you agree or disagree with the other party.
Identify the phrases that could be used to agree with others, and those that could be used to disagree
with others.
That wouldn’t go down well with the rest of my team That’s a good point
That could be a problem I’m sorry but I cannot accept that
That does not sound fair to me Okay. It’s a shame we couldn’t agree
We don’t seem to be getting anywhere with this I understand what you are saying, but ...
That’s OK as long as I can have … That’s really helpful
How would you feel about …? I was hoping for better terms
That sounds like a good offer That’s OK, this way we both benefit
Identify five other helpful phrases you could use when negotiating.
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
Try to use some of these phrases when you are next involved in a negotiation.

Activity 10.1
Students’ own answers, based on how they feel after each round. They are likely to respond more positively
to explanation and persuasion rather than being forced to move without explanation.
Activity 10.2
Benefits of the proposal might include:
 the chance to develop enterprise skills
 the stall could make some money
 the stall could indirectly help promote the school.
Drawbacks of the proposal might include:
 less time to spend on schoolwork
 any issues could reflect badly on the school.
Activity 10.3
Students’ own answers based on items selected.
Activity 10.4
Activity 10.5
Students’ own answers. A student debrief is a good way to help them evaluate the success of the
various strategies.
Activity 10.6

1 Negotiation is the process of discussion in order to reach agreement on a course of action (or solve a dispute)
that satisfies the interests of all involved.
2 Questions might include:
 How am I going to counter their objections?
 Have I listed the consequences for both sides if my proposal is not accepted?  
 Have I thought about what to say and how to say it?  
 Have I considered whom I am going to negotiate with?  
 Have I selected a suitable negotiating style and strategy?  
 Are my objectives SMART?  
 What points am I willing to give ground on?  
 At what point will I walk away from the negotiation, and why?
 have clear objectives so Milo knows what he is willing to accept
 good communication skills e.g., listening carefully to the supplier so he sees that Milo is serious
 prepare a list of benefits so Milo can show the supplier why he should want to help him set up his stall
 identify and anticipate drawbacks so Milo is ready with sensible solutions/answers to questions
 have list of alternative options so Milo is able to suggest compromises or alternative options
 practise negotiation skills to be ready to deal with a range of situations.
 Students’ own answers based on own negotiation.
Some possible points are identified in Q3

Points that show agreement:
 That’s OK as Iong as I can have …
 How would you feel about …?
 That sounds like a good offer
 That’s a good point
 That’s really helpful
 That’s OK, this way we both benefit.
Points that show disagreement:
 That wouldn’t go down well with the rest of my team
 That could be a problem
 That does not sound fair to me
 We don’t seem to be getting anywhere with this
 I’m sorry but I cannot accept that
 OK. It’s a shame we couldn’t agree
 I understand what you are saying, but …
 I was hoping for better terms.

Other phrases might include:
Starting –
 Let’s begin the discussion with …
 We are pleased that you could come today
 Today we are going to talk about …
Ending –
 It’s been a pleasure doing business with you.
Disagree –
 I have to disagree.
Finding a compromise –
 Provided you will … I think that would work
Clarifying –
 As I understand it
 Please correct me if I am wrong
 Did you mean?
 So what you are saying is …
Summing up –
 So the deal is …

Chapter 11 Communication
Teaching ideas
In this unit students should learn about appropriate communication within an enterprise. In preparation for
coursework there is a focus on:
 preparing for, running and recording a meeting
 using slides, handouts and visual aids in a presentation
 writing a formal report.
Introduce students to the idea that communication is about accurately passing a message to others that is then
acted upon. (You could potentially link this with marketing.)
 Use scenarios or examples to introduce the idea of formal communication and in what situations it is more
appropriate to use written or verbal communication. You could use this as an opportunity to develop an
important life skill and get students to undertake a practice application for a fictional job.
 You could introduce the concept of non-verbal communication to students using the numerous videos
available online (for example on YouTube) which demonstrate good and poor non-verbal communication
and the impact it can have on formal communication.
 Ask students to investigate international differences in non-verbal communication.
 You could help students to practise non-verbal communication skills by interviewing them for the fictional
job that they have applied for.
 Introduce the idea that sometimes informal communication is acceptable in enterprise.
 Use Activity 11.1 to check understanding of when to use formal or informal communication.
 Introduce the idea as to why an enterprise needs to hold meetings. A useful activity is to give students brief
scenarios in which they judge which meeting would be the most appropriate.
 Go through the theory of organising a meeting alongside students practically organising meetings for their
enterprise, including all relevant paperwork. It is often a good idea for students to observe other meetings
where possible, and see exemplar paperwork.
 Go through the theory of evaluating a meeting. Students should evaluate the mini case study ‘Valentina’s
awful meetings. Encourage students to evaluate a meeting that they have either observed or participated in.
This evaluation could be in the form of a short report.
 This section is intended as a practical guide for students when they create their presentations for task 2 of
the coursework. However, it is often beneficial for students to undertake presentations prior to this point to
develop their skills.
Project guidance
Students will make use of their communication skills throughout the enterprise project, and will be assessed on
their ability to communicate clearly in the most appropriate manner. It is important that they are given significant
opportunity to develop their presentation skills prior to undertaking the coursework.

Activity 11.1
 You have been asked to attend a meeting with your suppliers to negotiate a cheaper deal: In this situation
the meeting is to do something official with an organisation, group or individual with whom you should be
polite and show respect. This is formal communication.
 You are meeting with your manager to discuss a potential promotion: In this situation you are meeting to
do something official with an individual with whom you should be polite and show respect. This is formal
communication.
 Your friend works in a different department of the same enterprise: You are going to meet them at lunch
time to catch up on all the gossip. In this situation you are meeting to do something unofficial with an
individual, so this is informal communication.
Suggested answers to case study

Valentina’s awful meetings
1 Ideas could include:
 too many agenda items
 employees complaining
 minutes of previous meetings not being sent out
 using lack of minutes from meetings as an excuse not to do an allocated job
 arguments about taking the minutes meaning Valentina did it herself and therefore could not concentrate
on her role as chairperson
 documentation not going out prior to the meeting so time was wasted during the meeting reading the
documents rather than discussing them and making decisions.
2 Ideas could include:
 Reduce the number of items on the agenda. Could some be communicated to her team in different ways,
such as email?
 Ensure that a rota is agreed for team members to take notes for the minutes in the meeting so that there
are no arguments. This will free Valentina to undertake the role of chairperson and control things like staff
using the meeting to complain. She will be able to ensure there are strict time limits on discussions.
 Making sure that minutes go out promptly after each meeting. This way, no one can use this as an excuse
for not doing a job which they have been allocated.
 Ensure that all documents needed for the meeting are sent out with enough time for everyone to read
them so that they come to the meeting fully informed, ready to discuss and able to make decisions.

1 Formal communication is official communication that is polite and respectful and uses conventional spelling,
punctuation and grammar.
2 Students should be able to give several points regarding how non-verbal communication can reinforce or
confuse the message that the sender is trying to communicate. See Table 11.1 in the textbook.
3 Students should be able to explain the difference in audience in the two situations given and why formal and
informal communications are or are not appropriate in each situation.
4 Students will need to identify the communication methods they used and why. They will need to give an
account of both the good aspects of their communications and the poorer aspects of their communications.
Good answers will make judgements about how their communications impacted on the success of the
enterprise.
5 Students are likely to describe one of the reasons to hold meetings given on pages 134 and 135 of the
textbook (managing a project, managing people, working with a customer, other methods of communication
are becoming too complex, problems are arising, training people, conferences).
6 The chairperson makes sure the meeting stays on track and achieves the desired outcome. They should set
the rules for the meeting to make sure that everyone has a chance to voice their opinion and be part of the
decisions that need to be made. They also have to make sure that people don’t spend too long discussing one
matter on the agenda so that other items don’t get talked about.
7 Students will need to identify meetings, reports and presentations they used and why. They will need to give
an account of both the good aspects of their meetings/reports/presentations and the poorer aspects of these.
Good answers will make judgements about how their meetings/reports/presentations impacted on the
success of the enterprise.

Chapter 12 Help and support for enterprise
Teaching ideas
In this chapter students will learn how they can find help and support for an enterprise.
 Introduce the idea of formal and informal sources of help for business enterprises and ask students to
brainstorm in pairs and come up with some sources of support for each category. This could be extended by
asking students to think about which source might be the most suitable to a new entrepreneur.
 Start to draw a visual list (tree diagram or table) of the different sources identified by the pupils, with the
subheadings formal and informal sources of support.
 Explain the government/business agencies source of help and ask pupils to go through the The Umm Al
Moumineen Women’s Association case study in groups of 3, answering questions and making notes.
 Discuss the questions as a class. As an enrichment task, question the more able to assess the positives and
limitations of government/business agencies as a source of help.
 Explain the remaining formal sources of support. Pupils to discuss the NFTE case study in pairs/groups of 3.
Go through the questions on the case study as a class. This will help them understand how these sources of
support have benefitted some enterprises.
 Update the visual list on the board as the sources are discussed.
 Develop their learning by asking which source out of the 2 sources mentioned in the case studies do they
think is the most useful and why? Direct answers towards a dependency on the nature of the business and
its needs.
 Set students to do Activity 12.1. Make sure they have the internet or business journals to do the research,
otherwise set it as a homework task. Pupils to present their findings to the class. This task can be extended by
asking students to do more research on other formal sources of support in their area/country.
 Question the children on what might be an informal source of help? Add suitable points to the visual list on
the board. The complete visual list of informal and formal sources of help will be useful in consolidating the
content covered in this topic.
 Worksheet 12.1 provides practice for students at identifying and explaining the support provided by different
types of organisation.
 Ask students to think about their projects and which source of support is the most suitable to their enterprise.
Lead a discussion on the suitability of each type of source being dependent on the nature of the business and
its needs (this would have been alluded to before but should now be clearer for pupils to understand).
 Invite a person from a local business networking group or a business council to talk to the students about the
kind of support they provide.
Project guidance
 The content in this chapter mainly correlates with the work required in task 3 of the enterprise project:
Implementing your enterprise project.
 Students should research the possible sources of support locally and nationally available to the enterprise
that they want to start.
 The write-up for task 3 should show good evidence of their knowledge of enterprise skills using various
communication methods. It should include notes on the formal and informal sources of help available and
which source of help the student used and how it helped.

Worksheet 12.1
Organisation Type of support provided
TV media – Dragons’ Den
Social media networking –

Youth Entrepreneur Malaysia
Casual networking – MAKE business hub
Start-up funding support – Ruwad Establishment
Youth network – ASEANpreneurs
Mentoring programme – Mowgli Mentoring

Activity 12.1
This is a research-based activity and requires the students to have access to the internet or local business
journals. The school may have to facilitate this for some students if they do not have access to the internet or
if they are unable to obtain local business news.
Students can make a report on the formal and informal support available to local businesses. They could
interview local businesses to understand the challenges they face and any support they have had has been useful.

The Umm Al Moumineen Women’s Association
1 The women’s association offers support by:
 operating a centre for continuous education to educate young girls
 holding exhibitions, providing home entrepreneurs an opportunity to showcase their products
 conducting workshops where women can earn money by doing traditional activities
 conducting entrepreneurship training programs and information sessions for women. They are given
information on how to gain start-up capital and market their products.
2 Women entrepreneurs may not have had the opportunity to complete their education and so may lack the
skills needed to start and run an enterprise. They may also lack the funds needed to start a business and the
lack of education may make it difficult for women to obtain loans.
3 The UAE government may want to:
 preserve traditional activities as part of the country’s cultural heritage
 facilitate that women grow their interests into money-making businesses
 improve the status of women in the society.
Peter’s Party Favours

1 Small businesses would have limited resources and capital and training programs can inform and point the
entrepreneurs to sources of help and support and finance. It also provides them the skills and knowledge
needed to start and run a business and the opportunity to network with fellow trainees.
2 Omayra may have faced some of the following challenges:
 lack of confidence
 limited finance
 not aware of various sources of finance available
 unaware of the laws and regulations pertaining to his enterprise
 skills to grow a hobby/interest in to a money-making business
 lack of knowledge of how to best market his product
 lack of knowledge of the market and competition.

Help and support for entrepreneurs
1 Programmes like Dragons’ Den can help by providing small enterprises with the required capital, expert
advice and use of existing business networks to expand and grow their business.
2–3 Any answer accepted as long as it is justified. For example, if social media is stated then the reasoning can
be that it has a wider reach both geographically and audience.

1 Financial institutions can provide various types of loans catered to the needs to the entrepreneur, e.g. asset
loans (borrowing money against an asset that you own) and micro loans (small amounts). They can provide
financial advice. They can provide encouragement and support to keep going when things are not going
as expected.
2 It isn’t easy for entrepreneurs to get business loans, therefore family and friends are often the first people
entrepreneurs turn to, as a source of seed/initial capital for their new business enterprise. They can often also
offer personal encouragement, informal advice and practical help in the form of unpaid or cheap ‘mate’s
rates’ labour.
3 The MAKE business hub café helps entrepreneurs in the following ways:
 It offers communal work spaces, private meeting rooms, charging stations and presentation equipment.
It provides them the office resources they need to work without having to setup an office and incurring
high costs. This makes working easy for Dubai’s self-employed and professionals on the go and gives the
support that entrepreneurs need when they are just starting and setting up their business.
 It provides a great networking opportunity for individuals to meet and form connections with other
entrepreneurs. Meeting other like-minded individuals can be very helpful to exchange ideas, get guidance
and explore possible collaborations. The café provides this opportunity to anyone who can pay for the
services of the café.
4 The government can provide help and support for enterprises in various different ways as detailed in the
relevant section at the start of the chapter, so students should include ways such as grants and loans,
subsidies, dedicated agencies, training and tax incentives.
5 Students should have identified both the formal and informal sources of help available to their enterprise.
The sources of help should be specific to the industry, local area and country that they are in and not just
general as mentioned in the course book. Students should analyse the benefit from each source and then
evaluate which they think is the best.

Organisation Type of support provided
TV media – Dragons’ Den Providing capital needed to start their business.
Providing advice and business contacts to start and grow a new

business.
Social media networking – It aims to bring together the young entrepreneurs in Malaysia
Youth Entrepreneur Malaysia by initiating and supporting entrepreneurship
and business conferences for experienced and young
entrepreneurs.
Casual networking – MAKE business hub It offers various communal work spaces, private meeting rooms,
charging stations and presentation equipment. It makes working
easy for Dubai’s self-employed, start-up entrepreneurs and
professionals on the go. It provides a great networking
opportunity for individuals to meet and form connections.
Start-up funding support – Ruwad Establishment It provides start-up funding in form of an interest-free loan (up
to AED 300,000), or in form of a bank loan that Ruwad helps to
arrange/negotiate with an Islamic bank (up to AED 1 million).
Youth network – ASEANpreneurs Its main aim is to inspire youth and encourage entrepreneurship
in the ASEAN region. It organises regular events to bring
together aspiring entrepreneurs and business leaders to
promote sharing and discussion of business ideas, gain guidance
and possibly meet potential business partners.
Mentoring programme – Mowgli Mentoring It offers mentoring support to upcoming entrepreneurs by
bringing together groups of mentors and entrepreneurs
together for an initial training session, to build relationships,
match them together in one-to-one pairs and then follow it up
by online support for a year.

Chapter 13 Evaluation
Teaching ideas
This chapter mainly focuses on the AO3 skills of analysis and evaluation. These skills can take time to develop so
it is important to ensure that students have plenty of opportunity to practise and develop the skills needed from
the start of the course.
 Give students a simple activity in which students are asked to make a choice and give reasons for their
decision. This can lead into a group discussion about what analysis and evaluation is.
 Throughout the course, give students a range of activities in which they are required to use analysis and
evaluation skills. Start with simple problems or situations, to allow them to gain confidence and experience
in using their analysis and evaluation skills.
 At various stages throughout the course, provide students with a range of scenarios, and vary the type of
problems according to student’s ability and development. Students can practise their analysis and evaluation
skills using Worksheet 13.1.
Project guidance
Students must use analysis and evaluation skills when choosing a suitable project, planning the project and
evaluating the project.
When evaluating the project, remind students that there are many things that happen during the project that
they can comment on. Not everything will go well or badly, so it is important to keep a note of all significant
events as this can be used as both an area for discussion, and evidence to support points made.

Worksheet 13.1
1 Below is a list of five statements and possible analysis points, but they have become muddled up. Can you
match the statement with the correct analysis?
Statement Possible analysis
A We created colourful fliers which turned out to 1 As a result I was able to think carefully how
be a huge success. I could persuade my parents to invest in my
project.
B We communicated by using WhatsApp. As we 2 This allowed us to work more efficiently as

both had good internet access this was an we were not trying to do everything at the
effective method. same time.
C We created an action plan to outline what was 3 Because I didn’t have to pay anyone back or
being completed and by when. owe anyone any interest which meant I did
make a small profit.
D I choose to use my own savings as a source of 4 As they were very convincing and many people
finance and this turned out to be a great idea. contacted us straight after they received the
flyer to order our product.
E Planning for my negotiation was important 5 This meant that sometimes we could make
as I was able to work out the advantages and decisions without having to have a meeting
disadvantages of accepting my proposal. so we could get things done sooner.
2 Using activities from your project, write down five statements about how well your plans were implemented.
For each statement write a possible analysis point.
_________________________________________________________________________________________
_________________________________________________________________________________________
_________________________________________________________________________________________
_________________________________________________________________________________________
_________________________________________________________________________________________

Activity 13.1
Activity 13.2
Lack of experience:
 WHY? Because the entrepreneur didn’t know enough about costs involved.
 WHY? Because they hadn’t run a business before.
 WHY? Because they had only just left school, so had not been able to practise skills needed.
Activity 13.3
Factors could include:
 additional business – could create jobs/income for local people
 could attract other enterprises to set up creating more opportunities for jobs
 could increase competition for existing businesses leading to lower sales revenue
 pollution – noise from airport could disturbing the peace and there might be a potential health impact.
 loss of green space and use of resources so fewer resources available for future generations to use.
 it could be a source of revenue for the government, so they might be able to provide services for all the community.
Activity 13.4
Evidence – no market research had been carried out.
Additional evidence could include: jam instead of product; use actual numbers rather than saying ‘lost some
customers’.
Activity 13.5
Criteria will depend on situation.
Points might include: cost, availability, suitability for purpose or ease of use, required features (could be
listed separately).
Activity 13.6
Possible points in the evaluation could include:
 Caleb will have the control he is looking for; additional skills offered by the partner are helpful but not essential.
 Research shows three or four potential customers, so the bank may be willing to provide finance based on
this. These potential customers lessen the need for someone to help with marketing.
 Caleb would have to share the profits so he may not see any personal benefit from additional sales.
 Caleb would also have to discuss ideas, which could take longer, and what would happen if they do not
agree? Not only could this damage the business, but it could also affect their friendship.

The most significant factor for being a sole trader is the reason why Caleb wants to set up his enterprise – he likes
idea of making his own decisions. While he may make mistakes, the only way he can achieve this goal is by
becoming a sole trader.
Activity 13.7
What is wrong?
 Descriptive – states outcomes and outlines what group did rather than discuss the implications of the actions.
 No supporting evidence from project to illustrate issues.
 Section also covers financial issues that are not relevant to the planning, so should not be discussed here.
Improvements might include:
 What was the problem caused by the prices set – how did this affect the enterprise?
 Provide examples of the planning problems – again, need more examples to support points being made.
 ‘Finance went well’ – this should be discussed under the finance option.
Activity 13.8
Paragraph 1:
 Franco could refer to how he came to the predicted income figures that he got. For instance, how does he
know his start-up costs are $20 and his sales revenue is $60? If he has done research into start-up costs
and made sales predictions in the planning stages of the project then he could simply refer back to that
information. If not, he should add some detail in the report.
 Franco claims to have researched the running costs of his enterprise. He should refer back to this research.
Paragraph 2:
 Franco states that his expenditure is more than he predicted. He should go into detail as to why this happened.
For instance, did he mess up his initial research into the running costs of the enterprise, or did he simply have to
buy alternative products at a higher cost because the ones he based his estimates on were out of stock?
 Franco states his sales revenue is higher than he initially predicted. He should go into detail as to why this
happened. For instance, did he miscalculate his predicted sales revenue by underestimating the number of
cars he would wash in a day?
There should also be a paragraph in which Franco explains how he could have avoided the mistakes that he made
and suggest ways to improve the financial performance of the enterprise.
Activity 13.9
Points to include:
 Meeting didn’t go well due to lack of planning (agenda, and control issues could be explored and the possible
impact of this). For example, how do the lack of clear decisions affect the project?
 Improvements could focus on the agenda, agree who will chair each meeting, take detailed minutes (or
recordings), agree on any action points.

1 a4; b5; c2; d3; e1.
2 Students’ own answers

Planning – a scheme of work overview
The following scheme of work outlines one possible way you might wish to organise your time over a typical
two-year course. It assumes 2 lessons of 1 hr per week, with 11 weeks in each term and 3 terms per year. Each
syllabus point is mapped against Activities and questions in the coursebook and further, additional, resources are
suggested. It can and should be adapted depending on the specific needs of your school or students.
YEAR 1 TERM 1
Week Chapter/syllabus Skills development Suggested activities Suggested resources
section
1–2 Introduction [Unit 1]
Introduction to Enterprise
1.1 What is meant by enterprise
What enterprise is Focus on developing Case study activity: Cambridge IGCSE® and O Level
students’ knowledge Nirali Someshwar Business Studies Coursebook
and understanding (Fisher, Houghton & Jain, Cambridge
Use real-life University Press, 2014)
Who stakeholders examples and case Activity 0.1
are studies to enhance ESQ 3 from Chapter 1
ability to apply their
knowledge and
analyse information
1.2 Ways of students being enterprising in everyday life
At school Focus on students’ Activity 0.1
At home ability to apply their Worksheet 0.1
understanding in
identifying various
ways of being
enterprising and
possibly identify a
suitable project or
activity
3–6 Chapter 1 [Unit 2]
Setting up a new enterprise
2.1 The enterprise process
Six stages of the Focus on developing Worksheet 1.1 Coursebook Chapter 1
enterprise process students’ knowledge Activity 1.1
and understanding ESQ 4, 5
Encourage students
to apply this
knowledge to their
own project

section
2.2 Types of business organisation
Different kinds of Focus on the skill of Activity 1.2 Cambridge IGCSE® and O Level
organisation analysis and Case study: Betty Business Studies Coursebook
evaluation so Makoni (Fisher, Houghton & Jain, Cambridge
students think about Case study: Richard University Press, 2014)
the implications of and Maurice
different types of McDonald
organisations ESQ 1, 2, 6
through research,
discussions and
question and
answers
Encourage students
to apply this
knowledge to their
own project
Skills and behaviours of enterprising people
3.1 Skills of enterprising people
Introduction to Develop student Investigate
enterprising people understanding of enterprising people
how enterprising from the school, local
people use their community and wider
knowledge and skills community
to be successful
The enterprise Develop student Activity 2.1
skills set understanding of Activity 2.2
enterprise skills Case Study: Arjun
Santoth Kumar
Teacher-led definition
of skills with examples
of enterprising people
using these skills.
Worksheet 2.1:
Summarise the skills
of an enterprising
person
Textbook case study
and questions

section
Identifying and Develop students’ Activity 2.3
evaluating skills ability to evaluate ESQ 3
their own enterprise
skills
Encourage students
to think of
themselves as
enterprising people,
to know their
strengths and
weaknesses in
understand the
impact this may have
on future enterprise
activities
3.2 Behaviours of enterprising people
How entrepreneurs Develop students’ Activity 2.4 Local case studies and guests
use their ability to recognise Activity 2.5
enterprise skills and identify how Worksheet 2.1:
local entrepreneurs Summarise the skills of
use their enterprise an enterprising person
skills Case study: Tanya
Budd
ESQ 1–3
11 Chapter 13 Activities in the
Evaluation chapter
Worksheet 13.1

YEAR 1 TERM 2
section
1 REVISION
Opportunities, risk, legal and ethical considerations
4.1 Opportunities
How opportunities Focus on ESQ 1, 2 Newspapers, internet and
arise communication skills Case study: Noa Mintz; television focusing on stories about
such as listening and Benny Fajarai enterprising people and enterprise
sharing ideas
Encourage students
to look at media such
as newspapers,
internet and
television to be
aware of how
enterprising activity
comes about
4.2 Risk
Risks involved in Focus on Create a risk definition Newspapers, internet and
enterprise communication skills Use case study television focusing on stories about
Introduce simple examples based on enterprising people and enterprise
activities/case local and national
studies so students examples
start to apply
knowledge
Stages in Focus on developing Activity 3.1 Information and SWOT analysis
identifying risks students’ knowledge Activity 3.2 template
and understanding of Worksheet 3.1: www.mindtools.com/pages/article
key concepts Understanding PEST /newTMC_05.htm
analysis Templates 1 and 2 in the
coursebook
Case studies involving SWOT, e.g.
http://businesscasestudies.co.uk/c
ase-studies/by-
topic/marketing.html
http://pestleanalysis.com/pest-
analysis/
Examples of PEST in action, e.g.
http://pestleanalysis.com/pestle-
analysis-of-starbucks/
Analyse the Focus on developing Simple scenarios and Activities such as Jenga game
implications of each enterprise skills such local case study http://tastycupcakes.org/2013/04/
risk and decide if as problem solving, examples the-risk-is-in-the-blocks/
the risk is worth initiative, analysis Risk-based games and
taking and evaluation activities
Case study: Andrew
Mupuya

section
Plan how to Focus on developing Activity 3.3
manage the risks enterprise skills such Case study: Andrew
as problem-solving, Mupuya (cont’d)
and introducing skills ESQ 3
of analysis and
evaluation by
discussing each idea
and making decisions
Attitudes to risk Focus on skill of Activity 3.4 Activity based games or quizzes for
calculated risk-taking example
https://www.blogthings.com/areyo
uarisktakerquiz/
4.3 Legal obligations
Why laws and Focus on developing Discussion on role of www.tutor2u.net/business/referen
regulations to students’ knowledge laws and regulations ce/external-environment-business-
protect and understanding of Research laws in local legislation
stakeholders are key concepts entre
needed
The impact of laws Introduce simple Activity 3.5 Introductory article about types of
and regulations on activities/case Simple scenarios and laws
all stakeholders studies so students local case study http://smallbusiness.chron.com/go
start to apply examples vernment-laws-affect-businesses-
knowledge ESQ 5 25756.html
Newspapers, internet and
television focusing on stories about
laws and regulations affecting local
enterprise
4.4 Ethical considerations
How an enterprise Encourage students Activity 3.6 Articles about ethical behaviour for
may have an to look at media such ESQ 4 example Introduction to ethics
impact on as newspapers and presentation
communities and internet to be aware www.slideshare.net/tutor2u/buss4
society of current events -business-ethics
Ethical relating to ethical Case studies e.g. The Times 100
considerations issues Business Case Studies on Primark:
within enterprise http://businesscasestudies.co.uk/p
The impact of rimark/
ethical
considerations on
the operation of an
enterprise

section
Markets research
8.2 Market research
Methods of Focus on developing Activity 4.1 Additional information can be
identifying students’ knowledge Activity 4.2 obtained from IGCSE Business
potential and understanding of Activity 4.3 textbooks, for example:
customers key concepts Activity 4.4 Cambridge IGCSE® and O Level
Use activities that Activity 4.5 Business Studies Coursebook
require students to ESQ 1 and 2 (Fisher, Houghton & Jain,
apply knowledge to Cambridge University Press, 2014)
simple scenarios Cambridge IGCSE® Business Studies
4th edition (Barrington & Stimpson,
Hodder, 2013)
Online case studies, e.g.
http://businesscasestudies.co.uk/c
ase-studies/by-
Activity ideas, for example
www.tutor2u.net/business/blog/stu
dent-worksheet-market-research-1
Additional theory, e.g.
http://businesscasestudies.co.uk/b
usiness-theory/marketing.html
Template 3 from the coursebook
The effectiveness Use activities that Activity 4.6 Articles on methods of market
of methods for require students to ESQ 3 and 4 research used by an enterprise, e.g.
different apply knowledge to Worksheet 4.1: Cadburys
enterprises simple scenarios Selecting a method of https://paperap.com/paper-on-
Ensure there is a market research marketing-methods-cadbury-
range of activities chocolates/
and strategies to or
allow students to http://businesscasestudies.co.uk/c
practise analysis and adbury-schweppes/launching-a-
evaluation skills new-product-into-a-developed-
market/market-research.html
11 Chapter 13 Activities in the chapter

Evaluation Worksheet 13.1

YEAR 1 TERM 3
section
1–2 Revision
Business planning
7.1 Business objectives
Different Focus on developing ESQ 2 Additional information can be
enterprises have students’ knowledge Activity 5.1 obtained from IGCSE Business
different aims and understanding of textbooks, for example:
and objectives key concepts Cambridge IGCSE® and O Level
How aims Use simple scenarios Business Studies Coursebook
influence the and case studies so (Fisher, Houghton & Jain,
activities of students can apply Cambridge University Press, 2014)
enterprises their knowledge Cambridge IGCSE® Business Studies
4th edition (Barrington & Stimpson,
Cambridge University Press, 2013)
Background information about
aims and objectives, for example:
www.tutor2u.net/business/referen
ce/aims-and-objectives-of-a-
business
OR
www.tutor2u.net/business/referen
ce/business-objectives-
introduction
7.2 Action plans
The contents, Focus on developing Activity 5.2ESQ 1 and 4 Guidance about creating an action
purpose and students’ knowledge Worksheet 5.1: plan:
importance of and understanding of Creating an action plan http://smallbusiness.chron.com/wr
action plans key concepts ite-business-action-plan-2750.html
www.mindtools.com/pages/article
/newHTE_04.htm
Template 4 from the coursebook
Methods of Focus on developing Activity 5.3 Article about the importance of
monitoring and students’ knowledge Case study: Suki’s monitoring:
updating action and understanding of noodle bar www.dlsweb.rmit.edu.au/toolbox/l
plans key concepts ESQ 3 eadership/toolbox/ip/ip_c13.html
Use simple scenarios Article on measuring success of an
and case studies so action plan:
students can apply www.brighthubpm.com/project-
their knowledge planning/106500-how-to-measure-
your-action-plan-results/

section
6–9 Chapter 6 [Unit 6.1]
Sources of finance
6.1 Sources of finance
Advantages and Develop student Teacher-led Local case studies
disadvantages of understanding that investigation into why Template 5 from the coursebook
different sources enterprises need to enterprises have
of start-up access finance for a different funding
funding variety of reasons needs at different
throughout their points in their lifecycle
lifecycle Teacher-led definition
Develop student of sources of finance
understanding of suitable for a start-up
source of finance for including advantages
start-up enterprises and disadvantages.
Add in local context
Case study: The
Samphire Festival
ESQ 1–3
Funding for Develop student Teacher-led definition Template 5 from the coursebook
continuing trade understanding of of sources of finance
and expansion sources of finance suitable for continued
which are suitable for trading and expansion
continued trade or of an enterprise. Add
expansion in local context
Check student Activity 6.1 – extend by
understanding and asking students to add
address advantages and
misconceptions. disadvantages of each
source
ESQ 3
10–11 Chapter 13 Activities in the
Evaluation chapter
Worksheet 13.1

YEAR 2 TERM 1
section
1–2 REVISION
3–5 Chapter 7 [Unit 6.2]
The concept of trade credit
6.2 The concept of trade credit
What trade credit Develop student Teacher-led definition
is understanding of of credit
Advantages and finance Teacher-led
disadvantages of Develop student explanation of trade
trade credit understanding of trade credit between
credit between enterprises and
enterprises and their suppliers
suppliers including the Trade credit example
advantages and on p.89 of the
disadvantages for both coursebook; additional
parties local examples would
Check student be beneficial
understanding and Student investigation
address of sources of credit
misconceptions Consider the use of
credit in business
Activity 7.1
Teacher-led
explanation of trade
credit between
enterprises and their
customers
Guest speaker to
discuss the benefits
and advantages from
the perspective of
their business
ESQ 1–3

section
6–9 Chapter 8 [6.3]
Cash flow, break even, and income statement
6.3 Financial terms
Cash flow forecast Develop student Teacher-led Template 6 from the coursebook
understanding of why explanation
enterprises forecast, Activity 8.1
analyse, evaluate and Case Study: David’s
manage their financial low-calorie cakes
situations. Activity 8.2
Ensure that students ESQ 3
understand how this
information will be
used by both internal
and external
stakeholders.
Develop student
knowledge of cash flow
forecast in enterprise.
Develop practical
ability to calculate cash
flow forecast and use
as a predictive tool
Break even Students need to Teacher-led
understand and explanation of
calculate break-even revenue, fixed cost,
point variable costs, total
costs and how these
are used to calculate
break even
Activity 8.3
ESQ 1, 2
Income statement Develop student Teacher-led
knowledge of income explanation of how
statement and how it income statement is
is calculated calculated
Check student Example: Hyper Music
understanding and Sales
address ESQ 4
misconceptions
10–11 Chapter 13 Activities in the
Evaluation chapter
Worksheet 13.1

YEAR 2 TERM 2
section
1 Revision
Marketing
8.1 The purpose of marketing
Marketing to achieve Encourage students to Activity 9.1 Additional information can be
enterprise aims own knowledge and obtained from IGCSE Business
understanding of key textbooks, for example:
concepts Cambridge IGCSE® and O
Level Business Studies
Coursebook (Fisher,
Houghton & Jain, Cambridge
University Press, 2014)
Cambridge IGCSE® Business
Studies 4th edition
(Barrington & Stimpson,
Cambridge University Press,
2013)
www.tutor2u.net/business/
reference/what-is-
marketing
Marketing from the Encourage students to Activity 9.2 www.tutor2u.net/business/
perspective of own knowledge and reference/what-is-
customers understanding of key marketing
concepts
8.3 Customer retention
The reasons for Focus on developing Activity 9.2 Articles on the benefits of
retaining customers students’ knowledge ESQ 1 good customer service, e.g.
and understanding of www.tutor2u.net/business/
key concepts reference/benefits-of-good-
customer-service
Methods of measuring Focus on developing Activity 9.3 Presentation slides about
customer satisfaction students’ knowledge Case study: TOMS customer service
and retention and understanding of www.tutor2u.net/business/
key concepts reference/customer-service-
revision-presentation
television focusing on
stories or examples of
customer satisfaction and
retention
Methods of retaining Continue to use Activity 9.3 Newspapers, internet and
existing customers activities that require Case study: TOMS television focusing on
students to apply Activity 9.4 stories or examples of
knowledge to simple ESQ 2 customer satisfaction and
scenarios retention
Articles about customer
retention strategies, e.g.

section
www.dmn3.com/dmn3-
blog/5-real-world-customer-
retention-tactics
http://blog.clientheartbeat.
com/customer-retention/
Case studies about
customer retention, e.g.
http://businesscasestudies.c
o.uk/case-studies/by-
8.4 Marketing communication
Methods of marketing Focus on development Activity 9.5 Additional information can
communication to of creativity and Activity 9.6 be obtained from IGCSE
reach intended communication skills Activity 9.7 Business textbooks, for
customers Worksheet 9.1: example:
Marketing Cambridge IGCSE® and O
communication and Level Business Studies
the law Coursebook (Fisher,
Studies 4th edition
2013)
television focusing on
stories or examples of
customer satisfaction and
retention
Case studies, e.g.:
http://businesscasestudies.c
o.uk/case-studies/by-
Activities such as:
www.tes.com/teaching-
resource/promotional-mix-
student-centred-activity-
6373847
www.tutor2u.net/business/
blog/lesson-worksheet-
marketing-mix-promotion-
basics
Selecting appropriate Ensure there is a range Activity 9.8 Additional information can
methods for different of activities and ESQ 3, 4 and 5 be obtained from IGCSE
enterprises strategies to allow Business textbooks, for
students to practise example:
analysis and evaluation Cambridge IGCSE® and O
skills Level Business Studies
Coursebook (Fisher,

section
Studies 4th edition
2013)
Activities, e.g.
www.tes.com/teaching-
resource/gcse-business-
promotion-lesson-6318169
Negotiation
5.1 The negotiation process
What negotiation is Focus on developing Video clips and Search online for
students’ knowledge discussion negotiation video clips, e.g.:
and understanding of Activity 10.1 www.youtube.com/watch?v
key concepts ESQ 1 =0CdixDzE7I0 or
https://m.youtube.com/wat
ch?v=y5nmwuu6RX0
Article with ideas for
teaching negotiation:
www.pon.harvard.edu/daily
/teaching-negotiation-
daily/video-based-
negotiation-scenarios/
Stages in the Focus on developing Case study: Keely and Tips on how to negotiate:
negotiation process: students’ knowledge Jacob http://how-to-
planning and understanding of Activity 10.2 negotiate.com/?s=Seven+ba
key concepts ESQ 2 sic+steps
Conducting the Focus on developing Worksheets Activities to practise skills
negotiation skills of negotiation Simple activities and involved in negotiation, e.g.
and communication role plays www.moneyinstructor.com/le
Activity 10.3 sson/negotiatingskills.asp#LES
Activity 10.4 SON_PRINTABLE_MATERIALS
Activity 10.5 _-_WORKSHEETS
Activity 10.6 www.blairenglish.com/exerci
ESQ 3 and 4 ses/negotiations/exercises/m
Worksheet 10.1: What aking_a_deal/making_a_deal.
to say when html
negotiating Article about negotiation,
e.g.:
www.entrepreneur.com/arti
cle/201826
Measuring success Focus on skill of See Activity 13.5 Article on issues to consider
analysis and evaluation when trying to measure
success:
http://businessnegotiations
ervices.com/evaluating-
your-negotiation/
10–11 Chapter 13 Evaluation Activities in the
chapter
Worksheet 13.1

YEAR 2 TERM 3
Week Chapter / Syllabus Skills development Suggested activities Suggested resources
section
1 Revision
Communication
10.1 Types of communication

Formal and informal Develop student Teacher-led explanation
communication understanding of formal and of communication
informal communication Teacher-led explanation
of formal and informal
communication with
scenarios and exemplars
ESQ 1
Verbal and non-verbal Develop student Teacher-led explanation
communication understanding of non-verbal of verbal and non-verbal
communication, including communication using
the implications of good and videos/images
poor non-verbal Students investigate
communication variations in
Develop student skills in international non-verbal
non-verbal communication communication.
Practical activity using
non-verbal
communication skills (i.e.
interviewing for a
fictional job)
Table 11.1
Practical activity using
formal communication
skills (i.e. applying for a
fictional job)
ESQ 2
Appropriateness of Develop student Activity 11.1
different types of understanding of ESQ 3
communication for appropriate informal
communicating with communication in
internal and external enterprise.
stakeholders Check student
understanding and address
misconceptions.
10.2 Meetings and presentations
The need for careful Develop student Use scenarios to help Meetings
planning, considering understanding of why students understand the presentations and
possible outcomes people hold meetings in an different reasons why reports
before, during and enterprise. enterprises hold meetings Template 7 from the
after the event ESQ 4 coursebook

section
Documents for Develop student Teacher-led explanation Organising a
meetings and understanding and skills in of how to organise a meeting; key roles in
presentations organising meetings, the meeting, key roles in a a meeting; attending
roles in a meeting, meeting and how to a meeting.
preparing, participating in prepare for and Evaluating a meeting
and evaluating a meeting. participate in a meeting Presentations:
Develop student skills in Students to observe a Formal report
presentation. meeting and view Learning check
Develop student skills in exemplar meeting
formal report writing materials (Figs 11.2 and
Check student 11.3)
understanding and address Students to organise
misconceptions. meetings for their
enterprise project
Teacher led explanation
of why it is important to
evaluate a meeting
Case Study: Valentina
Students to evaluate a
meeting that they have
observed or participated
in Teacher-led
explanation of how to
create good
presentations using
textbook guidance
Students should be given
opportunities to develop
their skills in presenting
throughout their study
Teacher-led explanation
of how to write a good,
formal report using
textbook guidance
Students should be given
opportunities to develop
their skills in report
writing throughout their
study
ESQ 5, 6
Help and support for enterprise
9.1 Sources of help and support
Formal sources and Focus on developing Case study: Umm Al
assistance they offer students’ knowledge and Moumineen Women’s
Informal sources and understanding Association
assistance they offer Help develop students’ Case study: NFTE
Suitability of different analytical skills by looking at Case study: Help and
sources of help and the case studies and the support for
support for the impact of the different entrepreneurs
enterprise sources of help. Activity 12.1
Worksheet 12.1

section
Encourage students to apply
this knowledge to their own
project.
9–10 Chapter 13 Evaluation Activities in the chapter
Worksheet 13.1
11 Revision

Acknowledgements
The authors and publishers acknowledge the following sources of copyright material and are grateful for the
permissions granted. While every effort has been made, it has not always been possible to identify the sources of
all the material used, or to trace all copyright holders. If any omissions are brought to our notice, we will be happy
to include the appropriate acknowledgements on reprinting.
Thanks to the following for permission to reproduce images:
Cover image: Ashley Cooper/Getty Images.
Soleg/Getty Images Plus; Vertmedia/Getty Images Plus; Pijama61 /Getty Images; MutsMaks /Getty Images.

IGCSE Enterprise Teachers Resource 7P

Uploaded by

Copyright:

Available Formats

IGCSE Enterprise Teachers Resource 7P

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

IGCSE Enterprise Teachers Resource 7P

Uploaded by

Copyright:

Available Formats

Medi Houghton, Matthew Bryant

and Veenu Jain

© Cambridge University Press 2018 1

© Cambridge University Press 2018 2

Using your coursebook

© Cambridge University Press 2018 3

Using your Teacher’s Resource

© Cambridge University Press 2018 4

© Cambridge University Press 2018 5

© Cambridge University Press 2018 6

© Cambridge University Press 2018 7

Identifying the needs/challenges Need/challenge chosen:

2. Justify your choice:

Fundraising event/activity Fundraising activity/need chosen:

Justify your choice:

Stakeholders: Benefit to stakeholder 1:

© Cambridge University Press 2018 8

Suggested answers to case study

© Cambridge University Press 2018 9

Suggested answers to Worksheet 0.1

© Cambridge University Press 2018 10

The enterprise process

Types of business organisations

© Cambridge University Press 2018 11

Marketing plan should include what methods of marketing to use?

© Cambridge University Press 2018 12

Evaluation of successes and failures

Identifying the problem/need or want

Implementing the plan

Exploring creative solutions

© Cambridge University Press 2018 13

Suggested answers to case studies

© Cambridge University Press 2018 14

Richard and Maurice McDonald, USA

© Cambridge University Press 2018 15

© Cambridge University Press 2018 16

Suggested answers to Worksheet 1.1

© Cambridge University Press 2018 17

© Cambridge University Press 2018 18

© Cambridge University Press 2018 19

Suggested answers to case studies

© Cambridge University Press 2018 20

© Cambridge University Press 2018 21

© Cambridge University Press 2018 22

© Cambridge University Press 2018 23

© Cambridge University Press 2018 24

Andrew Mupuya, Uganda page 40

Suggested answers to exam-style questions

© Cambridge University Press 2018 25

© Cambridge University Press 2018 26

© Cambridge University Press 2018 27

How suitable is the method Interview Questionnaire Secondary research

Suitability for enterprise

Suitability for reaching

Any other factors

© Cambridge University Press 2018 28

Suggested answers to activities

© Cambridge University Press 2018 29

Suggested answers to exam-style questions

© Cambridge University Press 2018 30