SCHOOL-BASED ASSESSMENT

Principles of Business

An investigation into the impacts of increasing petrol prices on business owners in Jamaica.

Name:
Centre Number:
Candidate Number:
Teacher:
Territory:
Date:

1
 Table of Contents
Page #

Title Page...........................................................................................1

Topic..................................................................................................3

Objectives..........................................................................................4

Background/Overview.......................................................................5

Methodology......................................................................................6

Presentation and Analysis of Data.....................................................7

Conclusion........................................................................................10

Recommendations............................................................................11

Bibliography.....................................................................................12

Appendices.......................................................................................13

2
 Topic

What impacts have increasing petroleum prices had on business owners in Jamaica?

3
 Objectives

● Identify the challenges associated with increasing petrol prices on businesses in Jamaica.

● Find out what effect an increase in fuel price has on the production of goods and services.

● Determine what happens to businesses if petroleum prices increase.

4
 Background/Overview

Nowadays, when gas prices rise, it is almost certain to cause a drag on the economy, impacting
everything from consumer spending to the price of airline tickets to hiring practices. With the
price of petrol skyrocketing currently, your company will likely experience the effects in one
way or another. Rising gas prices have a trickle-down effect on the price of many goods and
services in a wide variety of industries because gas is an essential commodity for logistics and
transportation.

Gas is an important input for transportation, which directly impacts households as private
citizens need to get around, but also businesses that rely on logistics and transportation chains
around the globe. Rising gas prices may force some businesses to re-evaluate their hiring plans,
holding off because they are uncertain about the economy's health.
But higher gas prices affect more than just the cost to fill up at the gas station; higher gas
prices affect the broader economy. The increases in fuel price impact to this sector will cause
the increases in production costs in generating electricity. In general, higher oil prices are a
drag on the economy.

5
 Methodology
Questionnaire

To acquire the appropriate data, this research was conducted in the form of an online
questionnaire, to gain insight from the businesses. A total of 40 questionnaires were sent, with a
maximum of three (3) days to complete them. The questionnaire consisted of fifteen (10)
questions, all of which were multiple choice.

Interview

The interview took approximately 15-20 minutes to complete, which was used to get
immediate and more detailed feedback from respondents.

6
 Presentation and Analysis of Data

Question #10 from questionnaire; How has the businesses' money-making production been
affected since the increase?

Diagram 1

In the pie chart above, 55% of business owners reported that they are spending more than they
make due to the increase, 35% reported no change in the business’ earnings, and 10% reported an
increase. From this data, one can ascertain that increasing petroleum prices have an overall
negative impact on business owners, and business profitability on a whole, since the majority of
business owners reported operating at a loss.

7
Question #11 from questionnaire; How important is petroleum to the functioning of your
business?

Diagram 2

In the pie chart above, 77.5% of business owners noted petroleum as an essential commodity to run
their business, whilst 22.5% stated that it was desired but not necessary. No business owner stated
that it was unimportant, however, showing just how impactful petroleum is on the success of these
businesses.

8
Question #14 from the questionnaire; Would you say that the price you charge for your goods and
services has increased drastically during the pandemic?

Diagram 3

In the pie chart above, 47.5% of business owners noted a marked drastic increase in the prices they
charge when petroleum increases, whilst 37.5% said somewhat, and 15% said no. This further
illustrates the trickle-down effect of the prices of petroleum, as price increases are felt by
consumers through business owners.

9
Conclusion

10
 Recommendations

 The business owners can consider reaching out to government entities and private foundations
for grants that can be used to offset the impact that rising petroleum prices have had on their
livelihoods.

 Business owners can consider approaching the government for subsidies on petroleum prices.

 Business owners can draft plans to limit petroleum wastage and increase efficiency, to
purchase less petroleum, to begin with.

 The government could lower the prices of petroleum.

11
Bibliography

12
 Appendix
Interview Questions

1. How has work been recently due to the change of prices in petroleum?

2. Has the increase in petrol prices changed your work ethic?

3. Has the skyrocketing petrol prices influenced your business in any positive way?

4. Do petrol prices encourage rivalry in prices of goods and services?

5. How would you describe this increase in petrol prices in the pandemic?

6. Should we expect a rise in the prices of goods and services as a result of the petrol increases?

13
 Questionnaire
Answer all questions provided on this questionnaire with an ‘X’ (X) This questionnaire will
be kept confidential; so, your name is not applicable.

1. Age
- 20-29 ( )
- 30-39 ( )
- 40 – 49 ( )
- 50+ ( )

2. What is the nature of your enterprise?

- Sole Trader ( )
- Partnership ( )
- Public Limited Company ( )
- Private Limited Company ( )

3. How many hours do you work during the week?

- 1-6 hours ( )
- 7-10 hours ( )
- 11-15 hours ( )

4. How do you usually get to work?

- Private Car ( )
- Bus ( )
- Taxi ( )
- Bicycle/Motorcycle ( )
- On foot ( )

5. Is your chosen mode of transportation to work dependent on the price of

petroleum?
- Yes ( )
- No ( )

6. How many years have you been in the field you are currently in?
- Less than 5 years ( )
- 5 years – 15 years ( )
- More than 15 years ( )

7. How much money do you make on average, in a week?

- Less than $10,000 ( )
14
 - $10,000 - $50,000( )
- More than $50,000 ( )

8. Where is the nearest gas station to your place of work?

- Less than 5km ( )
- 5km – 15km ( )
- Greater than 15km ( )

9. What challenges have you encountered due to the increase in petrol prices?
- Struggle to meet overhead costs ( )
- Limitations on job acceptances due to inability to fulfill tasks ( )
- Having to lay off employees ( )

10. How has the businesses' money-making production been affected since the
increase?
- Spending more, making less money ( )
- It remains the same ( )
- It has increased( )

11. How important is petroleum to the functioning of your business?

- Essential ( )
- Desired, not necessary ( )
- Not important at all ( )

12. Would you say that the rising petroleum prices have now made your business
unprofitable?
- Yes ( )
- No ( )

13. Have you noticed a decline in business from customers whenever there is a large
spike in petroleum prices?

- Yes, a great deal ( )

- Somewhat ( )
- No, none whatsoever ( )

14. Would you say that the price you charge for your goods and services has increased
drastically during the pandemic?

- Yes, ( )
- Somewhat ( )
- No, ( )
15
15. As a result off the rising petroleum prices, do you find yourself constantly on the
hunt for new measures to conserve?

- Always ( )
- Sometimes ( )
- Rarely
- Never ( )

16