Syllabus: AQA - GCSE Businesss
Module: 3.1 Business in the Real World
Lesson: 3.1.1 The Purpose and Nature of Businesses

Introduction

This topic introduces students to the foundation of business thinking: why businesses exist and how they operate in different contexts. Aligned with the AQA GCSE Business specification (Section 3.1.1), this part of the curriculum develops learners’ understanding of the role of business in society, key terms such as ‘needs’ and ‘wants’, and the reasons entrepreneurs start businesses.

It’s a crucial opening to the subject, setting the scene for deeper topics like ownership, finance, and marketing. Delivered well, this unit can turn abstract ideas into tangible discussions that help students grasp the ‘why’ behind the world of work.

Key Concepts

According to AQA’s specification, students should learn to:

• Understand the purpose of business activity: satisfying customer needs and wants.

• Identify the difference between goods and services.

• Recognise factors of production: land, labour, capital, and enterprise.

• Explain the nature of entrepreneurship and the role of the entrepreneur.

• Understand the concept of adding value.

• Distinguish between needs (essential) and wants (non-essential).

• Explore reasons for starting a business, including profit motive, independence, and social mission.

Students should also be able to describe what a business does, using terms like production, selling, and customer service.

Real-World Relevance

Linking this unit to real-life examples is straightforward and powerful. For instance:

• Greggs: From a small family bakery to a UK-wide business, Greggs satisfies the basic need for food while also adding value through convenience and branding.

• Gymshark: Started by a teenage entrepreneur, this is a great example of a business born from passion and grown through innovation and digital marketing.

• Social enterprises like The Big Issue show how business can be a force for social good, not just profit.

Prompt students to think about businesses they engage with daily — who runs them, what they sell, and why they exist.

How It’s Assessed

In the AQA GCSE Business exam, this unit is typically assessed in Paper 1: Influences of operations and HRM on business activity, but may appear in both papers due to its foundational nature.

Assessment formats include:

• Multiple-choice questions to test key definitions.

• Short-answer questions asking students to apply terms like “enterprise” or “factors of production.”

• Case study questions where students analyse why a business was started or how it adds value.

• Command words: Watch for explain, identify, analyse, and justify — students should practise responding with structured points and examples.

Teaching students to structure their responses using PEEL (Point, Evidence, Explanation, Link) is especially useful here.

Enterprise Skills Integration

This topic is a natural fit for “learning by doing.” Practical approaches include:

• Mini-business challenges: Give students a simple product brief (e.g. sell bottled water) and ask them to define their business purpose, identify target customers, and describe how they’ll add value.

• Use Enterprise Skills Simulations to introduce business scenarios where students must make basic decisions about startup purpose, products, and market need.

• Promote decision-making and problem-solving by having students justify why they’d start a business and how they’d structure it to succeed.

These experiences move students beyond theory and allow them to explore the risks, motivations, and skills involved in setting up a business.

Careers Links

This unit helps meet Gatsby Benchmarks 4, 5 and 6:

• Benchmark 4 (Linking curriculum learning to careers): Students understand entrepreneurship, business functions, and the world of work.

• Benchmark 5 (Encounters with employers and employees): Invite a local startup founder to talk about their journey.

• Benchmark 6 (Experiences of workplaces): Even a virtual business simulation gives students a realistic understanding of entrepreneurial thinking.

Careers that relate directly to this unit include:

• Entrepreneur / Small Business Owner

• Business Development Officer

• Retail or Hospitality Manager

• Marketing Executive

• Social Enterprise Leader

Encourage students to explore real job roles and what skills those careers require — especially creativity, communication, and initiative.

Teaching Notes

What works:

• Start local: Ask students to research small businesses in their area. Why were they set up? What needs do they meet?

• Bring in enterprise tools: Use plug-and-play activities from platforms like the Skills Hub to explore key concepts through interactive case studies and quizzes.

• Scenario-based tasks: Let students role-play as entrepreneurs making startup decisions.

Common pitfalls:

• Students often confuse ‘needs’ with ‘wants’, or think all businesses are started purely for profit. Use varied examples to challenge this.

• Definitions can become dry — bring them to life with current businesses students know and use.

Extension:

• Have students analyse a famous entrepreneur (e.g. Ben Francis, Deborah Meaden, or Jamal Edwards) and explain how their businesses satisfy needs, add value, and demonstrate enterprise skills.