Brendan wants to be a successful entrepreneur．He plans to start up a flower shop using government support．Brendan＇s brother has offered to form a business partnership with him．Brendan knows it is important for a new business to use a suitable pricing method．He has already identified ways the business can increase added value．Brendan wants to know how an economic boom might affect his business．（b）Identify two ways a government can support business start－ups． Way 1： Way 2： .......................................................................................................................................

Business

IGCSE&ALevel

CAIE

Exam No：0450_s25_qp_11 Year：2025 Question No：1(b)

Answer:

Award 1 mark for each way (max 2 ).
Points might include:
- Grants/subsidies
- (Low interest) loans
- Low-cost/rent-free premises
- Provide training
- Tax relief/lower tax/tax holiday
- Advice/help with research
- Help promote/advertise the business
- Provide mentors

Other appropriate responses should be credited.

Knowledge points:

1.3.1.1. Characteristics of successful entrepreneurs

1.3.1.2. Contents of a business plan and how business plans assist entrepreneurs

1.3.1.3. Why and how governments support business start-ups, e.g. grants, training schemes

1.3.2.1. Methods of measuring business size, e.g. number of people employed, value of output, capital employed (profit is not a method of measuring business size)

1.3.2.2. Limitations of methods of measuring business size

1.3.3.1. Why the owners of a business may want to expand the business

1.3.3.2. Different ways in which businesses can grow, e.g. internal/external

1.3.3.3. Problems linked to business growth and how these might be overcome

1.3.3.4. Why some businesses remain small

1.3.4.1. Causes of business failure, e.g. lack of management skills, changes in the business environment, liquidity problems

Answer:

Knowledge points:

Solution:

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