Pearson Edexcel · GCSE · Business
Course version: 1BS0 · Version from Sept 2017
Business aims and objectives when starting up: ● financial aims and…
Full specification wording
Business aims and objectives: Business aims and objectives when starting up: ● financial aims and objectives: survival, profit, sales, market share, financial security ● non-financial aims and objectives: social objectives, personal satisfaction, challenge, independence and control. Why aims and objectives differ between businesses.
When starting up, entrepreneurs set specific aims and objectives to guide their decisions.
Checked against the Pearson Edexcel 1BS0 specification (opens in a new tab) on .
- Point 2 of 2
- 4 key terms
Study notes
From the checked teaching notes for this specification point.
The idea
When starting up, entrepreneurs set specific aims and objectives to guide their decisions. Financial goals often prioritise survival in the critical first year, alongside generating profit, increasing sales revenue, capturing market share, and achieving long-term financial security. Conversely, non-financial objectives focus on qualitative outcomes. These include social objectives like reducing environmental impact, gaining personal satisfaction, embracing a new challenge, and securing independence and control over working hours. Aims differ between businesses due to factors like the owner's personal motivations, the size and legal structure of the enterprise, and the specific sector they operate in.
For example: A sole trader might prioritise independence, whereas a tech startup might focus aggressively on market share.
What earns the marks
- Define survival as the primary short-term financial objective for most new startup businesses.
- Explain how market share is calculated as a percentage of total industry sales.
- Distinguish between independence (being your own boss) and control (making all operational decisions).
- Analyse how the legal structure, such as a social enterprise versus a private limited company, influences whether social objectives or profit maximisation are prioritised.
Common mistakes and how to put them right
Confusing aims with objectives.
Put it right by defining aims as broad, long-term goals and objectives as specific, measurable targets.
Assuming all startups aim for immediate profit.
Put it right by recognising that survival or building market share often takes precedence initially.
Treating independence and personal satisfaction as the exact same concept.
Put it right by specifying that independence relates to autonomy, while satisfaction is the emotional reward of the work.
Exam tips
- Always link the chosen objective to the specific context of the business provided in the case study.
- When evaluating why objectives differ, contrast a lifestyle business with a growth-focused startup to demonstrate depth of understanding.
- Use the term 'market share' accurately by referring to the proportion of total sales in a market, rather than just stating 'more sales'.
Try the lesson
The start of the Business aims and objectives: Business aims and objectives when starting up: ● financial aims and objectives: survival, profit, sales, market share, financial security ● non-financial aims and objectives: social objectives, personal satisfaction, challenge, independence and control. Why aims and objectives differ between businesses. lesson, made from checked teaching notes for this specification point.
Have a go first
Which of the following is an example of a non-financial aim for a new business start-up?
Listen
When starting up, entrepreneurs set specific aims and objectives to guide their decisions. Financial goals often prioritise survival in the critical first year, alongside generating profit, increasing sales revenue, capturing market share, and achieving long-term financial security. Conversely, non-financial objectives focus on qualitative outcomes. These include social objectives like reducing environmental impact, gaining personal satisfaction, embracing a new challenge, and securing independence and control over working hours. Aims differ between businesses due to factors like the owner's personal motivations, the size and legal structure of the enterprise, and the specific sector they operate in. For example, a sole trader might prioritise independence, whereas a tech startup might focus aggressively on market share. A strong answer earns marks for these points. Define survival as the primary short-term financial objective for most new startup businesses. Explain how market share is calculated as a percentage of total industry sales. Distinguish between independence (being your own boss) and control (making all operational decisions). Analyse how the legal structure, such as a social enterprise versus a private limited company, influences whether social objectives or profit maximisation are prioritised. A common slip: Confusing aims with objectives. Instead, defining aims as broad, long-term goals and objectives as specific, measurable targets. Exam tip: Always link the chosen objective to the specific context of the business provided in the case study.
See it
Key words
Say what each word means before you turn the card.
Survival
Try answering aloud or in your head before turning the card.
Market share
Try answering aloud or in your head before turning the card.
Independence
Try answering aloud or in your head before turning the card.
Social objectives
Try answering aloud or in your head before turning the card.
See every definition
- Survival
- The primary short-term financial objective for most new startup businesses, prioritised in the critical first year.
- Market share
- A percentage of total industry sales, calculated as the proportion of total sales in a market.
- Independence
- Being your own boss, relating to autonomy rather than the emotional reward of the work.
- Social objectives
- Non-financial aims focusing on qualitative outcomes, such as reducing environmental impact.
Label the diagram
Some boxes have lost their names. Pick the right name for each number.
1Box 1
2Box 2
3Box 3
There is more to this lesson
The full lesson goes on to check your understanding and help you earn the marks. Create a free account to carry on, with your progress saved.
A week of Premium from your first lesson · Then the free plan continues · No card, no charge
Test your understanding of Business aims and objectives: Business aims and objectives when starting up: ● financial aims and objectives: survival, profit, sales, market share, financial security ● non-financial aims and objectives: social objectives, personal satisfaction, challenge, independence and control. Why aims and objectives differ between businesses.
Active recall beats re-reading. Take an instant quiz now to test what you’ve learned and lock it into long-term memory.
A week of Premium from your first lesson · Then the free plan continues · No card, no charge