Business location — AQA GCSE Study Guide
Exam Board: AQA | Level: GCSE
Business location is one of the most critical, long-term strategic decisions an entrepreneur must make. A poor location choice can fatally undermine an otherwise excellent business model through high costs or lack of footfall.
Overview
Location is a fundamental business decision that requires a careful balancing act between competing priorities. For examiners, the key concept is trade-off: no location is perfect, and businesses must compromise to find the most suitable site. A city centre offers high footfall but exorbitant rent; a rural industrial estate offers cheap land but poor access to customers.
This topic requires candidates to understand the five key factors influencing location decisions: proximity to market, availability of raw materials, availability of labour, proximity to competition, and costs. Crucially, examiners reward candidates who can apply these factors to specific business contexts rather than writing generic lists.
Key Location Factors
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