Paper 2 · November 2020 · role of enterprise in the economy
The largest single contribution enterprise makes to a developing economy is that it
Areduces the number of firms competing
Bcreates employment and raises national output
Cincreases the amount the government itself spends
Draises the general level of import duty
Explanation
Small and medium enterprises absorb school leavers whom formal industry cannot take on, and the goods and services they produce add to gross domestic product. Employment and output are what the other contributions, tax revenue included, follow from.
Derived from ZIMSEC Business Enterprise Skills Paper 2, Nov 2020, Q1