Paper 1 · small business
Small businesses are important to an economy mainly because they
Aproduce most of the country's export earnings each year
Bset the level of interest rates charged on loans
Ccontrol the supply of foreign currency in the economy
Dcreate employment and serve niches large firms ignore
Explanation: Small firms together employ large numbers of people, add to output and tax revenue, and bring competition and new ideas into markets. Because their overheads are low they can profitably serve small, specialised groups of customers that a large firm would find too costly to supply.
Derived from ZIMSEC Business Enterprise Skills Paper 1, Specimen Paper (edition B), Q1