Paper 1 · Enterprise Skills
Tendai has been retrenched from his factory job and now runs a welding business from home. Which factor best explains why Tendai started this enterprise?
Athe loss of paid employment pushing him into self-employment
Bthe wish to reduce the amount of tax paid by his household
Ca legal requirement that retrenched workers register a business
Dthe availability of a government grant given to every welder
Explanation: Motives to start an enterprise are either pull factors (a spotted opportunity, the profit motive, the wish to be one's own boss) or push factors. Retrenchment is the classic push factor: with no wage coming in, self-employment becomes the way to earn a living. Nothing in law obliges a retrenched worker to trade.
Derived from ZIMSEC Business Enterprise Skills Paper 1, Specimen Paper (edition A), Q1