Identify and explain two reasons why many Governments help small businesses such as Manuel's.

Mark scheme

Marking points from the official mark scheme (May/June 2014). The mark or mark type is shown in brackets.

1. Content:
2. • To increase employment
3. • To increase economic growth / local economy
4. • Small businesses may grow into large businesses
5. • Increased competition
6. • To help them survive
7. 1 mark for each reason identified (2 marks maximum). Up to three further marks are available for explaining the reason.
8. 1 knowledge mark + up to 3 explanation marks (4 marks × 2 reasons)
9. Simple explanation: To raise employment levels (1 mark for knowledge)
10. Developed Explanation: To raise employment levels (1) as small businesses will employ many workers in their shops and factories and so reduce unemployment (2). Without government help, businesses like Manuel's fruit and vegetable shop may not open and therefore these workers would not have a job (3). This may reduce benefit payments or increase tax for the government (4).
11. Content (for part b):
12. • Email
13. • Telephone
14. • Fax
15. • Post order form
16. • SMS
17. • Face to face
18. Level 1 – 1 mark for each statement E.g. Manuel could use email to place orders for fruit and vegetables (1 mark).
19. Level 2 – 5 marks for the first level 2 answer and then one extra mark for each additional level 2 answer up to maximum of 8 marks. E.g. Manuel could use email to place orders for fruit and vegetables with the wholesaler because email is quick and cheap to use. He only needs a computer and internet access. The order will get there straight away. The only problem may be if he uses the wrong email address or the email gets lost then Manuel may not know whether the order has been received as there is not necessarily any feedback. 5 marks for level 2 answer plus one application mark for mentioning wholesaler.
20. Level 3 - Detailed discussion of at least two level 2 answers and then a recommendation at the end which justifies which is the best method of communication to choose compared to the other methods of communication.
21. Possible application marks: shop; been in business for 10 years; sole trader; wholesaler.
22. There may be other examples in context which have not been included here.
23. Application (Level 3): 9-10 marks At least 2 x Level 2 + well justified recommendation as to the best method of communication to choose compared to the other methods of communication.
24. Application (Level 2): 5-8 marks Good discussion of advantages/disadvantages of each method of communication OR balanced argument. Some limited judgement shown in recommendation about the best method of communication to choose.
25. Application (Level 1): 1-4 marks Suitable method of communication named/outline of advantages/disadvantages of each method of communication.