Interactive

Learner Guide

Cambridge IGCSE™
Enterprise 0454
For examination from 2020

Version 2
 In order to help us develop the highest quality resources, we are undertaking a continuous programme of
review; not only to measure the success of our resources but also to highlight areas for improvement and to
identify new development needs.

We invite you to complete our survey by visiting the website below. Your comments on the quality and
relevance of our resources are very important to us.

www.surveymonkey.co.uk/r/GL6ZNJB

Copyright © UCLES 2018 (updated in April 2021)

Cambridge Assessment International Education is part of the Cambridge Assessment Group. Cambridge Assessment is
the brand name of the University of Cambridge Local Examinations Syndicate (UCLES), which itself is a department of the
University of Cambridge.
UCLES retains the copyright on all its publications. Registered Centres are permitted to copy material from this booklet for
their own internal use. However, we cannot give permission to Centres to photocopy any material that is acknowledged to a
third party, even for internal use within a Centre.

Cambridge IGCSE Enterprise 0454 2

 Learner Guide

Contents
About this guide 4

Section 1: Syllabus content – what you need to know about 5

Section 2: How you will be assessed 6

Section 3: What skills will be assessed 9

Section 4: Command words 11

Section 5: Example candidate response 12

Section 6: Revision 17

Section 7: Useful websites 36

3 Cambridge IGCSE Enterprise 0454

About this guide
This guide explains what you need to know about your Cambridge IGCSE Enterprise course and examinations. You should
use this guide alongside the support of o your teacher. It will help you to:
9 understand what skills you should develop by taking this Cambridge IGCSE course

9 understand how you will be assessed

9 understand what we are looking for in the answers you write

9 plan your revision programme

9 revise, by providing revision tips and an interactive revision checklist (Section 6).

Cambridge IGCSE Enterprise 0454 4

 Learner Guide

Section 1: Syllabus content - what you need to know about

This section gives you an outline of the syllabus content for this course. Ask your teacher for more detail about each topic, you
can also find more detail in the Revision Checklists of this guide.

The Cambridge IGCSE Enterprise syllabus is made up of the knowledge of enterprise concepts and key practical skills. You will
show your ability to use enterprise skills through the completion of an enterprise project in the coursework.

Only the topic headings for the knowledge have been included here. You will study the following topics:

Topic Overview
1 Introduction to enterprise What enterprise is and who are stakeholders. Ways of being
enterprising at home and at school.
2 Setting up a new enterprise Looking into the stages of the enterprise process and
different kinds of organisation.
3 Enterprise skills The skills and behaviours of enterprising people and
entrepreneurs.
4 Enterprise opportunities, risk, legal obligations and How opportunities arise, risks involved in enterprise,
ethical considerations why laws and regulations are needed and the impact an
enterprise may have on communities and society.
5 Negotiation Stages of the negotiation process.

6 Finance Advantages and disadvantages of different sources, trade

credit. Terms:cash flow forecast, break-even and income
statement definitions and examples. Purpose of and keeping
accurate financial records.
7 Business planning Business aims and objectives, action and business plans.

8 Markets and customers Marketing, market research, customer retention and

marketing communications.
9 Help and support for enterprise Sources and assistance offered.

10 Communication Formal and informal communication. Meetings and

presentations.

For Component 2, you will complete the following coursework tasks for your enterprise project:
Task 1 Choosing a suitable project
Task 2 Planning the project
Task 3 Using enterprise skills to implement the plan
Task 4 Evaluating the project
Make sure you always check the latest syllabus, which is available at www.cambridgeinternational.org

5 Cambridge IGCSE Enterprise 0454

Section 2: How you will be assessed
You will be assessed at the end of the course using two components:
• Component 1 Written Paper
• Component 2 Coursework

Components at a glance
This table summarises the key information about each component.

Component Time and Skills assessed Details Percentage of

marks qualification
Component 1
Knowledge and
Written Paper 1 hour 30 understanding
minutes You answer all questions. 50%
Based on a pre- Application
released case 100 marks
Analysis and evaluation
study
Knowledge and
You produce a portfolio of evidence
Component 2 understanding
collected through the completion
60 marks 50%
Coursework Application of an enterprise experience. This will
include four tasks.
Analysis and evaluation

Cambridge IGCSE Enterprise 0454 6

 Learner Guide

About the components

It is important that you understand the different types of question in each paper and how you should approach them.
Component 1 Written Paper
This paper tests all the assessment objectives. Questions are based on the ten topics outlined in the syllabus and in Section 1
of this document. You must answer all questions. The paper is based upon a pre-released case study.
There are two sections in the paper. Each section has 50 marks. You should try to spend 45 minutes on each section of the
paper.
Section A – contains five questions divided into several short-answer, structured-questions. This section may include
calculations. Questions in Section A may include definitions, calculations and application of knowledge to examples. Answers
are worth 1−6 marks.
Take careful note of the command word and the number of marks allocated to the question.

A question with the command work

‘state’ with one mark available can
be answered very briefly

Questions with the command word Questions in section A will often ask you
‘explain’ will require a developed answer to give examples from either the case
and are usually worth 2 or more marks. study or your own enterprise experience.

7 Cambridge IGCSE Enterprise 0454

Section B – contains two longer open-ended essay-style questions, each question is divided into two parts.
Questions in Section B use the command words ‘Discuss’, ‘Evaluate’ or ‘Recommend’. These ask you to:
• show knowledge of enterprise concepts or skills
• apply the knowledge to an example from an enterprise
• analyse both sides of the question.
In Question 6(b) and 7(b) you must make a supported decision.
Question 6(a) (10 marks) and Question 6(b) (15 marks) are based upon the enterprise in the pre-released case study so make
sure you describe the information in detail or quote from the case study as evidence.
Question 7(a) (10 marks) and 7(b) (15 marks) are based upon your own enterprise experience for the coursework. Make sure
the examiner can understand when reading your answers what product or service you sold in your enterprise project.
Before the examination:
Use the pre-released case study to identify key terms and issues that may be discussed in the examination.
Try to apply the points raised in the case study to your own enterprise:
• Did you have similar problems?
• How did you solve them?
You will find it helpful to have your coursework completed before the examination.
Component 2 Coursework
Coursework tests your ability to use enterprise knowledge and skills in the organisation and operation of an enterprise project
and your ability to evaluate your experience. You can work alone or in a small group to complete the enterprise project, but
your written work must be your own individual work.
You need to produce a portfolio of evidence which will include:
• Task 1 – A formal written report of about 1200 words showing how you chose your enterprise project.
• Task 2 – An action plan for your enterprise project. (This is the only piece of work that can be produced as a group.)
οο Plus – Individual written evidence of how you plan to manage two or three significant problems identified in the plan.
οο Plus – Evidence of a presentation covering either your proposal for finance or your proposals for marketing within your
enterprise.
• Task 3 – A written record of how you used five enterprise skills including negotiation, during the enterprise project.
οο Plus – your plan for a negotiation you took part in during the project.
• Task 4 – A formal written report of about 1500 words evaluating the planning and operation of your enterprise plus one
other aspect from financing, marketing communications or internal communications.
If you complete the enterprise project with a group of people you must make sure all the work submitted as coursework is
totally your own. Only the action plan and evidence of marketing communication can be group documents that each member
of the group includes in their evidence.
Task 1 and Task 2 must be completed before starting your enterprise project.
Task 3 and Task 4 should be completed after your enterprise project has ended.

Cambridge IGCSE Enterprise 0454 8

 Learner Guide

Section 3: What skills will be assessed

The areas of knowledge, understanding and skills that you will be assessed on are called assessment objectives (AOs).

AO1 AO2 AO3

Knowledge and Application Analysis and evaluation
understanding

The table below explains what each assessment objective means and what percentage of the whole qualification is assessed
using that objective. Your teacher will be able to give you more information about how each of the assessment objectives are
tested in each component.

Assessment What does the AO mean? What do you need to be able to do?
objectives (AO)
AO1 Remember facts and apply • Show that you have clear understanding of terms by giving
these facts to new situations precise definitions.
Knowledge and
understanding • Explain the content and importance of enterprise documents
such as a business plan.
• Be able to calculate relevant financial information and
complete documents from information given.
AO2 Apply your knowledge to • Apply your knowledge and understanding of concepts, skills
examples from enterprises. and terminology to examples from your own enterprise
Application
experience and unfamiliar case studies.
• Develop communication materials that are appropriate for the
intended audience.
AO3 Explain the positives and • Analyse, interpret and evaluate information and develop
negatives of a situation or idea arguments.
Analysis and
and make a recommendation • Make judgements, recommendations and decisions.
evaluation
on the best choice.
• Find solutions to enterprise problems and issues.

9 Cambridge IGCSE Enterprise 0454

Weighting for assessment objectives
It is important that you know the different weightings (%) of the assessment objectives, as this affects how the examiner will
assess your work.
For example, assessment objective 1 (AO1: Knowledge and understanding) is worth 38% of the total marks in Component 1
(Written examination paper), and 10% of the total marks in Component 2 (Coursework).
The approximate weightings of the assessment objectives (AOs) are summarised below.

Assessment objectives as a percentage of each component

Assessment objective Weighting in components %

Paper 1 Paper 2
AO1 Knowledge and understanding 38 10
AO2 Application 30 35
AO3 Analysis and evaluation 32 55

Assessment objectives as a percentage of the qualification

Assessment objective Weighting in the full qualification %

AO1 Knowledge and understanding 24
AO2 Application 33
AO3 Analysis and evaluation 43

Cambridge IGCSE Enterprise 0454 10

 Learner Guide

Section 4: Command words

The table below includes command words used in the assessment for this syllabus. The use of the command word will relate
to the subject context.

Command word What it means

Analyse Examine in detail to show meaning, identify elements and the relationship between them.

Define Give the precise meaning.

Describe State the points of a topic/give characteristics and main features.

Discuss Write about issue(s) or topic(s) in depth in a structured way.

Evaluate Judge or calculate the quality, importance, amount or value of something.

Set out purposes or reasons/make the relationships between things evident/provide why and/or how
Explain
and support with relevant evidence.
Identify Name/select/recognise.

Justify Support a case with evidence/argument.

Prepare Present information in a suitable format.

State Express in clear terms.

Question from Specimen Paper 1

This is question 6(a) from the 2020 Specimen Paper. There are several parts to the question. The first word in each part is the
command word which should help you identify what is required.

Discuss means that you need to write in To Aiyana’s family means that you
detail about at least two advantages and two must use examples from the case
disadvantages to the family of offering trade credit. study to add detail to your answer.

11 Cambridge IGCSE Enterprise 0454

Section 5: Example candidate response
This section takes you through an example question and answer from a Cambridge IGCSE Enterprise specimen paper. It will
help you to see how to identify command words within questions and to understand what is required in your response. A
command word is the part of the question that tells you what you need to do with your knowledge. For example, you might
need to describe something, explain something, argue a point of view or list what you know.

All information and advice in this section is specific to the example question and answer
being demonstrated. It should give you an idea of how your responses might be viewed by an
examiner but it is not a list of what to do in all questions. In your own examination, you will
need to pay careful attention to what each question is asking you to do.

This section of the guide includes:

Question
The command words in the question have been highlighted
and their meaning explained. This should help you to
understand clearly what is required by the question.

Mark scheme
This tells you as clearly as possible what an examiner expects
from an answer to award marks.

Example candidate response

This answer has been marked by a Cambridge examiner.
Good points and problems have been highlighted.

How the answer could have been improved

This summarises what could be done to gain more marks

Common mistakes
This will help you to avoid common mistakes made by
candidates. So often candidates lose marks in their exams
because they misread or misinterpret the questions.

Cambridge IGCSE Enterprise 0454 12

 Learner Guide

Question
The question used in this example is a question 7 part (b) question from Paper 1. Now let’s look at the question to see what
the command words for this question mean for your answer.

Evaluate means that you need to explain how the market

research was effective in gaining information and why it was
not effective. To answer the question fully you should do this
for at least two methods because you must decide on the
most effective method and give a reason for your choice.

Mark scheme
The examiner uses a mark scheme and a set of level criteria to mark the answer. The level criteria list what the candidate
needs to do to demonstrate the assessment objectives at that level. These criteria refer to knowledge and examples, which are
those listed in the mark scheme.

Level Description What it means Mark

4 Clear reasoned evaluation is present You decide, or make a recommendation, after 12-15
looking at both sides of the argument.
Good analysis applied consistently to their
enterprise project Each point of information is applied to the
enterprise and the impact on the enterprise is
Demonstrates good knowledge of relevant
clearly explained.
concepts
You use the enterprise terms and concepts you
have learnt precisely.
3 Good analysis applied consistently to their Each point of information is applied to the 8-11
enterprise project is leading to evaluation enterprise and the impact on the enterprise is
clearly explained.
Demonstrates knowledge of relevant concepts
You use the enterprise terms and concepts you
have learnt precisely.
2 Some application to their enterprise project You have given some examples from your 4-7
supported by some analysis enterprise to show the impact of some points.
Demonstrates knowledge of relevant concepts
1 Limited application to their enterprise project You have given a list of knowledge or ideas but 1-3
there is no or very little evidence of application to
Demonstrates some knowledge of relevant
your enterprise.
concepts

13 Cambridge IGCSE Enterprise 0454

Learner Guide

Example candidate response

Our primary research was a questionnaire to find out what products the
1 The answer shows understanding of primary research. Indicating the
students at our school wanted us to make. We put the questionnaire onto purpose of the questionnaire will make it easier to decide if it was effective,
the school internet site so it was very cheap to make.1 because the candidate can say if it did help them to find out what products
the students wanted.
100 students sent us a reply but very few students were interested in our
2 The example is clearly about their enterprise and shows the reason why
product, which was milkshakes. So this questionnaire was a waste of time. 2 this was not an effective method in this case.

We should have give people a list of products to choose from rather than
just ask them about milkshakes. We had to do a second questionnaire, but
we were running out of time so we chose to print out copies. We did not
have much money so we only printed 20 copies. This was not a large enough
number of people as we have 1200 students in the school.

From this questionnaire, we decided to sell cupcakes. We also chose the 3 How the piece of research was effective is clear and applied to the decision
flavour of cupcakes, chocolate and vanilla, and the prices so it was more made. Although the word effective is not used, useful is, and the meaning is
useful than the first questionnaire. 3 Because we did not have a lot of replies made clear.
we did not know how many cupcakes to bake and we made a mistake by
4 A weakness of the questionnaire is explained and the example is clearly
baking the same amount of chocolate and vanilla cakes.4 This was because from their enterprise experience as it discusses cupcake choices.
we did not ask enough people to complete the questionnaire and so we had
to guess the amounts. 5 5 A weakness of the questionnaire is applied to the cupcake enterprise
showing the effect on the enterprise. This is good analysis.

We also did an interview with an enterprise group from the year above
6 Another primary piece of research is identified and applied to the
us. 6 They had sold cakes for their enterprise project. This was very helpful candidates enterprise through an example.
because they told us the best place to put our stall and the methods of
advertising that had been useful for them. We used the same methods of

Cambridge IGCSE Enterprise 0454 14

 Learner Guide

advertising and we managed to attract lots of students to our stall and sell
7 The strengths of the interview and how it helped the enterprise are clear.
all of our cakes. So the interview really helped us to be successful. 7

Our secondary method of research was using the internet to find a recipe 8 The candidate shows that they understand secondary research. How it was
for the cakes and to find the best places to buy the ingredients. 8 We also used in the enterprise is shown by the example.
use websites to find out the price to charge for our cakes. This research was
helpful as we found a recipe that we used for both types of cakes and the 9 No reason is given to show why the local store was chosen which would
have made the answer stronger. This does show an applied example of why
prices for the ingredients. Adriana spent a long time looking at websites and
this was a problematic piece of research for their enterprise – time wasting.
decorations that we could use, but in the end we bought the ingredients
from a local store 9 because David’s mum said she would take us there. So
the research on the websites for ingredients was just a waste of time.

Also, we decided a price for our cupcakes based on the research that James
had completed online, but this was a high price and the enterprise students
in the year above said it was too much so we just copied their price.

The most effective method of research for us was the interview with the
10 A decision is made and a reason given which shows understanding of why
other students and the second questionnaire, because this was information the internet research was a problem for the cupcake enterprise.
about what the students in our school would want. The internet research
was useful for deciding the recipes and it was free, but we wasted too much
time. 10 We were easily distracted by pictures and links to other sites so it
took too long.

Although we found lots of information such as the prices for cakes in shops
and the cost of ingredients, it was not useful because we could not go to the
shops mentioned.

Next time I would use more primary research in our school and secondary
11 The candidate does not give specific examples of why this research next
research in local shops so we could make better decisions for our enterprise time would improve their enterprise.
which is only local. 11

15 Cambridge IGCSE Enterprise 0454

Learner Guide

How the answer could have been improved

This is a very strong answer that shows the learner understands and has used a variety of different methods of research. The
answer throughout is clearly about the cupcake enterprise and is therefore applied. To improve this answer the learner needed
to write in more detail about the effectiveness of the research. In the conclusion it would help if they had stated why wasting
time was a problem for their enterprise, maybe they only had a short amount of time to research? The impacts of the research
were also not always clear. Why was it important that they asked only students within the school? How did they judge if the
research was effective? This was awarded 12 out of 15 marks.

Common mistakes
The most common mistake when approaching the Section B essays is to give examples from the wrong enterprise. For
example, the question asks the learners to apply the question to their own enterprise experience and they write about the
enterprise in the case study.
Another common mistake is to not give specific examples. For example, saying “we completed a questionnaire” instead of
“we completed a questionnaire in school to find out the flavour of cupcakes wanted.” The examiner needs to be able to see
how the knowledge you have learnt was applied specifically to a real example. So it is important to giv e details of what you
did and why you did it when talking about your own enterprise experience.

General advice
In order to do your best when answering questions in section B
• Make sure that you take a note of the command word and which enterprise you should write about, is it the case study or
your own enterprise experience.
• Write a rough plan for your answer.
• Do not list a lot of knowledge points, these questions need you to show application to an enterprise.
• Include examples as much as possible. If you are writing about the enterprise in the case study, it is fine to quote pieces
from the information, but you must explain what they mean. If you are writing about your own enterprise, you must make
sure that the examiner can see what your enterprise product or service was. The examples should clearly show what you
did and why you did it.
• Always explain the effect of any action on the enterprise you are talking about. For example, if you are discussing the
benefits of research explain what the results of the research allowed the enterprise to decide.
• Try to give a two-sided answer that looks at positive and negative points.
• Make a clear decision or recommendation and say why you have made that decision.
• In your conclusion repeat words from the question asked. For example if the question ask you to "evaluate the
effectiveness of research” in your conclusion in your conclusion say "the effectiveness of …..”

Cambridge IGCSE Enterprise 0454 16

 Learner Guide

Section 6: Revision
This advice will help you revise and prepare for the examinations. It is divided into general advice for all papers and more
specific advice for Paper 1 and Paper 2.
Use the tick boxes to keep a record of what you have done, what you plan to do or what you understand.

General advice
Before the examination
Find out when the examinations are and plan your revision so you have time to revise. Create a revision timetable and
divide it into sections to cover each topic.
Find out how long each paper is, how many questions you have to answer, how many marks there are for each question,
and work out how long you have for each question.
Find out the choices you have on each paper, make sure you know how many sections there are and which sections you
should answer from.
When there is a choice of questions in a section, make sure you revise enough to have a choice.
Know the meaning of the command words used in questions and how to apply them to the information given. Look at
past examination papers and highlight the command words and check what they mean.
Make revision notes. Try different styles of notes.
Work for short periods then have a break. Revise small sections of the syllabus at a time.
Test yourself by writing out key terms, practising calculations, etc.
Make sure you define enterprise terms accurately. For example, a fixed cost is not just one that does not change it is a
cost that does not change with output or sales.
Definitions must not reuse the words to be defined. For example, a business network means a group of likeminded
people/entrepreneurs (business people) who meet to share ideas and explore future business partnerships (network).
Make your own dictionary or draw up a glossary of key terms for each section of the syllabus.
Look at financial documents, business and action plans, to find out what they should include.
Practise calculations such as break even and revenue.
Examine the pre-released case study. What enterprise terms are used? What problems did the entrepreneur face? Relate
the points raised in the case study to your own enterprise experience. Know your own enterprise project thoroughly.
What problems did you face? How did you solve those problems? What were your successes? What helped you to
achieve those successes?
Learn to spell enterprise terms correctly.
Have a look at past questions so that you are clear of what to expect in an examination.
Look at mark schemes to help you to understand how the marks are awarded for each question.

17 Cambridge IGCSE Enterprise 0454

In the examination
Read the instructions carefully and answer all questions
Plan your time according to the marks for each question. For example, a question worth three marks requires less time
and a shorter answer than one worth 10 marks. If a question has several parts, then the parts with more marks will need
more time and more developed answers.
Do not leave out questions or parts of questions. Remember, no answer means no mark.
Read each question very carefully.
• Identify the command words – you could underline or highlight them.
• Identify the other key words and perhaps underline them too.
• Try to put the question into your own words to understand what it is really asking.
Read all parts of a question before starting your answer. Think carefully about what is needed for each part. You will not
need to repeat material.
Look very carefully at the resource material you are given.
• Read the title, key, axes of graphs, etc. to find out exactly what it is showing you.
• Look for dates, scale, and location.
• Try using coloured pencils or pens to pick out anything that the question asks you about.
Answer the question. This is very important!
Use your knowledge and understanding.
Do not just write all you know, only write what is needed to answer the question.
Plan your answers. Clear, concise, well-ordered, well-argued, well-supported answers get more marks than long,
rambling, muddled, repetitious answers. Quality is better than quantity.
Use enterprise terms in your answers as much as possible.
Use the resource material given in the question to support your answer.
Clear examples of what you did in your own enterprise experience should be used when asked for in the question.
Focus you answer on the enterprise specified in the question. This maybe the enterprise in the case study or your own
enterprise experience.
Make sure your writing is clear and easy to read. It is no good writing a brilliant answer if the examiner cannot read it!

Cambridge IGCSE Enterprise 0454 18

 Learner Guide

Paper 1 advice
Use the case study before the examination to identify issues, terms and problems.
Before the examination practise applying the issues in the case study to your own enterprise experience.
Learn precise definitions and calculations.
Use the command words in the question to identify what you need to do.
Make sure any examples you give are for the enterprise required in the question.
Plan the Section B answers and include detailed examples.
Make sure that the examiner knows what your enterprise project was when answering Question 7(a) and (b).
Try to give a two-sided answer.
Include a conclusion for questions 6 and 7.

Coursework advice
Keep any evidence of research that you have completed to include as evidence in your work.
Task 1 and 2 should be completed before you start running your enterprise project.
Task 3 and 4 should be complete after you have operated your enterprise project.
Task 2 Your action plan for the project maybe written as a group but you must write your own individual analysis of two
or three potential problems or issues with the plan and how you intend to deal with them. Include the action plan as an
appendix to your analysis of the problems/issues.
Task 2b You must show evidence of your planning for either finance OR marketing communications. In each case include:
• Written evidence of the sources of finance or marketing communication you considered and explanation of your final
choices.
• A witness statement completed by your teacher or another person who watched the presentation.
• Any documents used in the presentation for example the slides or examples of marketing communications or financial
documents.
Task 3 You must provide:
• A written record of how you individually used five named enterprise skills in your enterprise project.
• Your individual plan for a negotiation which includes the people involved in the negotiation, the situation of the
negotiation, benefits and weaknesses of your proposal and the outcomes of the negotiation.
Task 4 A formal written report analysing and evaluating:
• the planning and implementation of the enterprise project
plus either
• the financing of the enterprise project
or
• the marketing communications used
or
• the internal communication used. Choose this option only if you worked as a group in your enterprise project.

19 Cambridge IGCSE Enterprise 0454

Learner Guide

Revision checklists
In the next part of this guide we have provided some revision checklists. These include information from the syllabus that you should revise. They don’t contain all the detailed knowledge
you need to know, just an overview. For more detail see the syllabus and talk to your teacher.
The table headings are explained below:

Topic You should know Further guidance R A G Comments

These are the This is what you should be able Detailed points about the You can use the tick boxes to show when you have revised You can use the Comments
topics in the to do or know for each part of content of the syllabus an item and how confident you feel about it. column to:
syllabus the syllabus
R = RED means you are really unsure and lack confidence; • add more information about
you might want to focus your revision here and possibly the details for each point
talk to your teacher for help • include a reference to a useful
A = AMBER means you are reasonably confident but need resource
some extra practice • add further information
of your own enterprise
G = GREEN means you are very confident.
experience
As your revision progresses, you can concentrate on the • add learning aids, such as
RED and AMBER items in order to turn them into GREEN rhymes, poems or word play
items. You might find it helpful to highlight each topic in
• pinpoint areas of difficulty you
red, orange or green to help you prioritise.
need to check further with
your teacher or textbooks.

Note: the tables below cannot contain absolutely everything you need to know, but it does use examples wherever it can.

Cambridge IGCSE Enterprise 0454 20

 Learner Guide

Topic 1: Introduction to enterprise

Topic You should know Further guidance R A G Comments

1.1 What is meant by What enterprise is • enterprise capability (being innovative, creative,
enterprise taking and managing risks, positive attitude)

• business enterprise

• social enterprise

Who stakeholders are Examples of stakeholders include:

• customers and consumers

• employees, employers

• suppliers

• lenders

• the local business community

• local government.

1.2 Ways for students Know the ways of being • using technology for learning
to be enterprising in enterprising:
everyday life • working/learning as part of a team
• At home
• At school
• making reasoned evaluations

• developing new skills and using them in different

situations

• problem-solving

• thinking creatively, e.g. finding creative solutions

21 Cambridge IGCSE Enterprise 0454

Learner Guide

Topic You should know Further guidance R A G Comments

• taking initiative, e.g. finding ways to earn money or
taking the lead

• organising activities, e.g. a charity event.

Topic 2: Setting up a new enterprise

Topic You should know Further guidance R A G Comments

2.1 The enterprise The six stages of the enterprise You will follow this process when working on your
process process: enterprise project.
1. Identifying the problem or
need or want
2. Exploring creative solutions
3. Action planning
4. Implementing the plan
5. Monitoring progress
6. Evaluation of successes and
failures.
2.2 Types of business The different kinds of You should consider the following for each type:
organisation organisation, including:
• legal status
• sole trader
• partnership • advantages and disadvantages of each type for a
• limited company new enterprise.
• co-operative
You will not be assessed on:
• franchise
• limited liability partnerships (LLPs)
• social enterprise: charities,
not-for-profit organisations.
• community interest companies (CICs).

Cambridge IGCSE Enterprise 0454 22

 Learner Guide

Topic 3: Enterprise skills

Topic You should know Further guidance R A G Comments

3.1 Skills of Enterprise skills may include: • Recognise that some people have these skills
enterprising people naturally and others have to develop them, e.g.
• the practical skills and
self-confidence.
knowledge to create
products and services
• The term ‘skills’ is used here to cover attributes,
• leadership
characteristics and learned skills.
• influencing skills
• team-building • Different people combine and use these skills in
• delegation many ways.
• problem-solving
• You will identify and evaluate your own skills during
• prioritisation/time
your enterprise project.
management
• self-confidence
• resourcefulness
• innovation
• taking initiative
• taking calculated risks
• taking responsibility
• motivation/determination
to succeed
• creativity
• perseverance.
Identifying and evaluation your
own skills.

23 Cambridge IGCSE Enterprise 0454

Learner Guide

Topic You should know Further guidance R A G Comments

3.2 Behaviours of • How entrepreneurs use their • You should be familiar with named entrepreneurs
entrepreneurs enterprise skills. from the local community and wider society. You
may find an example in your school.

• You should be able to recognise how the

entrepreneurs studied use enterprise skills.

Topic 4: Enterprise opportunities, risk, legal obligations and ethical considerations

Topic You should know Further guidance R A G Comments

4.1 Opportunities How opportunities arise, Opportunities for enterprise may be local, national,
including: international or global.
1. Changing needs or wants for Reasons why needs or wants for a product or service
a product or service might change include:
2. Change in the ability to • changes in taste and fashion
meet needs or wants
• changes in the size and structure of population
3. Advances in technology
• changes in real income.
4. Changes in government
Examples of changes in government policy include:
policy.
• availability of grants and subsidies
• changes in taxation
• changes in the law.
4.2 Risk Risks involved in enterprise Risks may be in the following areas:
• financial
• economic
• health and safety/environmental
• human resources
• production.
Identify risks Research including:
• SWOT (strengths, weaknesses, opportunities and
threats)

Cambridge IGCSE Enterprise 0454 24

 Learner Guide

Topic You should know Further guidance R A G Comments

• PEST (political, economic, social, technological).

Analyse the implications of Balance the potential negative outcomes against the
each risk potential positive outcomes (rewards).
Decide if the risk is worth taking Recognising that some risks would lead to rejecting the
or not enterprise idea.
Plan how to manage the risks By avoiding, minimising or maximising the risk.

Attitudes to risk Attitudes to risk include: risk-averse, risk reducer, risk-

keen.
Recognise that different attitudes to risk can affect
how an entrepreneur manages the risk.
4.3 Legal obligations Why laws and regulations to Candidates will not be assessed on specific laws.
protect stakeholders are needed
in the areas of:
• employment

• production

• marketing and selling

• finance.
The impact of laws and
regulations on all stakeholders
in these areas.
4.4 Ethical How an enterprise may have The impact on society may be positive or negative. For
considerations an impact on communities and example:
society.
• supporting community activities

• creating pollution.

25 Cambridge IGCSE Enterprise 0454

Learner Guide

Topic You should know Further guidance R A G Comments

Ethical considerations within Including:
enterprise (i.e. choosing to run
• fair trade
an enterprise following moral
values and beliefs)
• organic farming

• donating profits to charity.

The impact of ethical

considerations on the operation
of an enterprise

Topic 5: Negotiation

Topic You should know Further guidance R A G Comments

5.1 The negotiation What negotiation is A process that can involve:
process
• resolving disputes

• agreeing upon courses of action

• bargaining for individual or collective advantage

• reaching outcomes to satisfy the interests of those

involved.
Stages in the negotiation Candidates will be required to plan and conduct a
process: negotiation as part of their enterprise project.
• setting objectives
• Planning

• choosing evidence to use

• benefits of a proposal

• weaknesses of a proposal

• arguments and counter-arguments for the proposal.

Cambridge IGCSE Enterprise 0454 26

 Learner Guide

Topic You should know Further guidance R A G Comments

• Conducting the negotiation • setting the tone

• presenting your proposal

• understanding each other’s point of view

• summarising to check understanding

• reaching agreement.

• Measuring success • what went well

• how to improve next time

Topic 6: Finance

Topic You should know Further guidance R A G Comments

6.1 Sources of finance Advantages and disadvantages Sources including:
of different sources of:
• personal savings (capital)
• start-up funding
• family and friends

• bank overdrafts, loans, leasing and mortgages

• community sources, including charities and social

enterprises

• grants and subsidies

• crowdfunding

• selling shares.

27 Cambridge IGCSE Enterprise 0454

Learner Guide

Topic You should know Further guidance R A G Comments

• funding for continuing trade • personal savings (capital)
and expansion
• retained profit

• private institutions

• venture capital

• issuing shares.

You have the option to prepare financial planning

materials for your enterprise project.
6.2 The concept of Advantages and disadvantages For:
trade credit of trade credit
• entrepreneurs and suppliers (trade payables)

• entrepreneurs and customers (trade receivables)

6.3 Financial terms Cash flow forecast cash inflows, cash outflows, surplus and deficit.

Break-even variable costs, fixed costs, total cost, contribution.

Income statement profit and loss, income, revenue, expenditure, debt.

Note: charitable organisations do not make a profit,

they record a surplus.

You will need to define and provide examples of terms

and make calculations where appropriate.
6.4 Financial records The purpose and importance You should understand the purpose of income
of keeping accurate financial statements and budgets, including cash flow forecasts.
records
• reasons for keeping accurate financial records
include:
• the need to provide a true and fair view to
stakeholders

Cambridge IGCSE Enterprise 0454 28

 Learner Guide

Topic You should know Further guidance R A G Comments

• legal and taxation purposes

• forecasting

• decision-making for owners/shareholders.

How to prepare a simple You may need to make simple calculations in relation
budget, including a cash to the pre-released case study.
flow forecast, and an income
statement for an enterprise

Topic 7: Business planning

Topic You should know Further guidance R A G Comments

7.1 Business Different enterprises have Recognise that objectives are shorter term and aims
objectives different aims and objectives are long term.
The range of objectives may include:
• ethical, not-for-profit, social, belief-based

• legal compliance

• profit

• sales revenue

• cash flow

• growth

• survival.

How aims influence the For example:

activities of enterprises
• promoting healthy eating in schools

• maximising growth.

29 Cambridge IGCSE Enterprise 0454

Learner Guide

Topic You should know Further guidance R A G Comments

7.2 Action plans The purpose and importance of You are required to produce an action plan for your
action plans Contents of action enterprise project.
plans
Methods of monitoring action
plans

The importance of updating

action plans
7.3 Business plans The purpose and importance of
business plans

Contents of business plans

Methods of monitoring business

plans

Reasons for updating business

plans

Topic 8: Markets and customers

Topic You should know Further guidance R A G Comments

8.1 The purpose of Marketing to achieve enterprise Including:
marketing aims • increasing consumer awareness of the enterprise,
product or service

• establishing and maintaining brand loyalty

• increasing or defending sales, market share or

profit.
Marketing from the perspective Including:
of customers • greater knowledge of the enterprise, product or
service

• the ability to make more informed decisions.

Cambridge IGCSE Enterprise 0454 30

 Learner Guide

Topic You should know Further guidance R A G Comments

8.2 Market research Methods of identifying Primary and secondary research.
potential customers
The effectiveness of methods Advantages and disadvantages of each method, in
for different enterprises terms of:
• cost

• availability

• suitability for the enterprise

• suitability for reaching the potential target market

• other potential advantages/disadvantages.

The effectiveness will depend on the relevant local

context.
8.3 Customer The reasons for retaining Including:
retention customers • establishing and maintaining brand loyalty

• increasing or defending sales, market share or

profit.
Methods of measuring Including:
customer satisfaction and • number of sales and complaints
retention
• mystery shopper feedback questionnaires

• focus groups.

Methods of retaining existing Including:

customers • effective customer service • resolving complaints

• loyalty rewards

• new products and services.

31 Cambridge IGCSE Enterprise 0454

Learner Guide

Topic You should know Further guidance R A G Comments

8.4 Marketing Methods of marketing Including:
communications communication to reach
• television, radio, cinema, newspapers and
intended customers
magazines

• posters, leaflets

• online communication and social media

• word of mouth and announcements

• sponsorship.

Selecting appropriate methods Advantages and disadvantages of each method, in

for different enterprises terms of:
• cost

• availability

• suitability for the enterprise

• suitability for reaching the potential target market.

• other potential advantages and disadvantages.

Appropriate methods will depend on the relevant local

context.
You have the option to produce marketing
communications for your enterprise project.

Cambridge IGCSE Enterprise 0454 32

 Learner Guide

Topic 9: Help and support for enterprise

Topic You should know Further guidance R A G Comments

9.1 Sources of help Formal sources and the Sources including:
and support assistance they offer • government/business agencies

• consultants

• financial institutions

• charities

• teachers

• business networks

• other entrepreneurs
Informal sources and the Sources including:
assistance they offer • friends and peers

• family.

Suitability of different sources The suitability will depend on the relevant local
of help and support for the context.
enterprise

Topic 10: Communication

Topic You should know Further guidance R A G Comments

10.1 Types of Formal and informal Recognise that methods of communication can be
communication communication formal or informal depending on the audience, e.g.:
• writing a formal report for investors

• sending an email to a friend

• having a formal business meeting

33 Cambridge IGCSE Enterprise 0454

Learner Guide

Topic You should know Further guidance R A G Comments

• talking to a friend at lunch.

You are required to write formal reports for your

enterprise project.
Verbal and non-verbal Recognise and provide examples of how and
communication why language changes in formal and informal
communication. For example, how body language
affects communication in face-to-face conversations.
Appropriateness of different Internal stakeholders, such as:
types of communication for • managers
communicating with internal
and external stakeholders • employees

• shareholders

• owners.

External stakeholders, such as:

• suppliers

• customers

• banks

• the local community

• local government.

10.2 Meetings and The need for careful planning, Ways include:
presentations considering possible outcomes
• being well planned (so that all attendees know
before, during and after the
when to arrive and what to bring)
event
• having a clear focus

Cambridge IGCSE Enterprise 0454 34

 Learner Guide

Topic You should know Further guidance R A G Comments

• keeping to time

• ensuring everyone has an opportunity to speak.

Documents for meetings and The importance of providing appropriate documents.
presentations Documents for formal meetings include:
• notice of meeting

• agenda

• minutes.

Documents for presentations, include:

• visual aids

• handouts.

A formal report might be used to support a meeting or

presentation.
You will give a presentation as part of their enterprise
project.
The need to analyse and Ways include:
evaluate if meetings or
• analysing and evaluating decisions made
presentations have been
successful
• deciding if objectives were achieved

35 Cambridge IGCSE Enterprise 0454

Section 7: Useful websites
The websites listed below are useful resources to help you study for your Cambridge IGCSE Enterprise course.

URL Description of the site and what it’s useful for

www.tutor2u.net/business/topics/enterprise This is a useful site for revision notes and presentations.
www.bbc.com/education/guides/z8c9jxs/revision This site has a video and test covering what is enterprise.
www.dineshbakshi.com/igcse-business-studies Although aimed at the IGCSE Business Studies course this
site has some excellent revision resources covering financial
documents and marketing.

Cambridge IGCSE Enterprise 0454 36

Cambridge Assessment International Education
The Triangle Building, Shaftesbury Road, Cambridge, CB2 8EA, United Kingdom
t: +44 1223 553554
e: info@cambridgeinternational.org www.cambridgeinternational.org

Copyright © UCLES August 2018 (updated in April 2021)