1. Explain four possible benefits to the UK Economy from Levi’s Enterprise.

Ans: a) Economic growth and Job creation: Opening a new factory to produce Reggae Sauce will
create jobs in the UK and thereby aid in lowering the country's unemployment rate. The investment
will have a multiplier effect on the economy, for instance, Reggae Sauce will create demand for
ingredients that will be supplied by other firms, boosting their profits and fostering economic growth.
b)Increased competition and consumer choice: Reggae Sauce will provide competition for
existing brands in the market and thus encourage firms to be more efficient and improve the quality
of their products to secure a competitive advantage. The new product will increase choice for the
consumer.
c) Contribution to public finances: The employment of workers to produce the sauce will
reduce unemployment and consequently reduce the welfare benefits paid out by the government. This
will enable the government to use resources in some other way, e.g. the money saved could be used
to boost spending on education. Further, Levi’s success will mean that the government will benefit
from increased tax revenue.
d) Export Earning: In the long term, if the sauce is successful, it may be exported to other
countries, thus contributing to a more favorable current account balance for the UK.

2. Analyze two reasons for the initial success of Levi Rose as an entrepreneur.

Ans: a) Commitment and determination: Levi did not give up on his dream despite the
setbacks of being rejected by many banks. Being able to bounce back in the face of
adversity is an important characteristic of many successful entrepreneurs.
b)Media publicity – Levi’s appearance on the BBC’s Dragon’s Den would appear to have
been critical to the success of his business as he had already failed to secure backing from
high-street banks. Without the venture capital, the growth of his business would have been
severely constrained in the short term. His appearance on the BBC also provided an ideal
opportunity to promote his business to a much wider public; his personality was, again,
important in
making an impact on the British public.