Item A: Nia earns a secure salary as a bicycle mechanic and is considering starting a mobile bicycle-repair business. Two established repair shops already operate in the area, but neither offers repairs at customers' homes.
| Information | Amount |
|---|---|
| Nia's annual salary | £28,000 |
| Nia's personal savings | £20,000 |
| Van and equipment required | £17,000 |
State one role Nia would perform as an entrepreneur.
Nia tested her idea by offering mobile repairs at weekends for eight weeks. She completed 21 repairs but turned away 13 enquiries from customers who wanted a weekday appointment. She is now considering the following options.
Option 1: Leave her job and operate the mobile repair business full-time
Option 2: Remain employed and continue offering mobile repairs at weekends
Outline one financial risk to Nia of starting the mobile repair business full-time.
Justify which one of these two options Nia should choose.
37 exam-style questions on Edexcel GCSE Business 1.1 Enterprise and entrepreneurship, covering 1.1.1a Why new business ideas come about: technology and consumers, 1.1.1b Why new business ideas come about: obsolescence, 1.1.1c How new business ideas come about, 1.1.2a Risk in business activity, 1.1.2b Reward in business activity, 1.1.3a The role and purpose of business activity, 1.1.3b Adding value, and 1.1.3c The role of entrepreneurship. Each one has a worked solution and a mark scheme showing where the marks go.