Syllabus: Pearson Edexcel GCSE Business
Module: Enterprise and Entrepreneurship
Lesson: 1.1.3 The Role of Business Enterprise

Introduction

The topic 1.1.3 The Role of Business Enterprise sits within Theme 1 of the Pearson Edexcel GCSE Business specification: Enterprise and Entrepreneurship. It explores why businesses exist, what they do, and the value they create for society. This is foundational content – not just for understanding business, but for helping students make sense of the commercial world they live in.

This topic links directly with the knowledge expectations outlined in the Pearson Edexcel GCSE Business specification, supporting curriculum objectives such as understanding enterprise, recognising risk and reward, and applying knowledge to real business contexts. It provides a natural entry point for broader conversations around entrepreneurship, innovation, and economic activity.

Key Concepts

Students are expected to learn and understand:

• The purpose of business activity – including producing goods or services to meet customer needs.

• The role of business in the economy – providing jobs, creating wealth, supporting communities.

• Adding value – how businesses turn inputs into outputs that are more valuable to customers.

• Business enterprise and the entrepreneur – spotting an opportunity, taking risks, and organising resources effectively.

• The characteristics of successful entrepreneurs – including creativity, resilience, and decision-making.

These are not just abstract ideas – they underpin later topics such as business aims and objectives, marketing, and finance.

Real-World Relevance

To bring this content to life, it helps to focus on case studies of small businesses or start-ups that illustrate these principles in practice. For example:

• Ben Francis and Gymshark: Started in a garage in 2012 by a university student, Gymshark shows how a clear customer need (affordable, stylish fitness wear) combined with savvy social media use led to global success.

• Joe & Seph’s Popcorn: A small family business that adds value through unique flavours and hand-made processes. Their story is rich in examples of risk-taking, identifying gaps in the market, and creating a brand identity.

Local examples – such as students’ own family-run shops, market stalls, or even side hustles – are equally powerful. They make the link between curriculum and community, a priority echoed in Gatsby Benchmark guidance and Ofsted’s curriculum quality indicators.

How It’s Assessed

This topic is assessed across Paper 1: Investigating Small Business. Teachers should focus on helping students:

• Define key terms and apply them in context.

• Use case study evidence to justify answers.

• Identify examples of added value, entrepreneurial activity, and business purpose.

Typical question styles include:

• “State one reason why a business might add value.”

• “Explain one benefit of being an entrepreneur.”

• “Using the case study, analyse how the entrepreneur took a risk.”

Command words like explain, analyse, and justify should be taught explicitly, using scaffolding and retrieval practice to support extended writing skills.

Enterprise Skills Integration

This topic naturally integrates core Enterprise Skills, which are explicitly linked to employability and future readiness:

• Problem-solving: Entrepreneurs respond to unmet needs and solve consumer problems.

• Decision-making: Choosing what product to offer, how to price, and where to sell.

• Initiative: Spotting gaps in the market or responding creatively to constraints.

• Resilience: Facing uncertainty and dealing with risk.

Tools like MarketScope AI from Enterprise Skills can support this by guiding students through real-time market trend analysis, helping them identify opportunities – a direct simulation of the entrepreneur’s mindset.

Careers Links

This content ties closely with Gatsby Benchmarks 4 (linking curriculum learning to careers) and 5 (encounters with employers).

Relevant roles to highlight include:

• Entrepreneur (self-employed/start-up founder)

• Marketing Assistant

• Business Development Officer

• Product Designer

• Social Enterprise Lead

Using platforms like Start Profile or employer videos via The Careers & Enterprise Company can enhance engagement. Consider hosting a local entrepreneur for a Q&A – even a 10-minute slot can shift student attitudes.

Teaching Notes

• Common pitfalls: Students often confuse adding value with profit. Clarify that adding value refers to the transformation process, not the financial outcome.

• Intervention tips: Use simple product scenarios (e.g. a chocolate bar) to break down the stages of adding value. Include role-play to explore how entrepreneurs pitch ideas or respond to challenges.

• Stretch & challenge: Ask students to critique the risk-taking of well-known entrepreneurs. Was it justified? What would they have done differently?

• Cross-curricular links: PSHE, Citizenship and Design & Technology provide great crossover opportunities, especially when exploring innovation and social enterprise.