GCSE Business Studies

Unit 1
Starting a Business

Business Location
 Learning Outcomes
• Explain the following factors that influence the location of
businesses locally, nationally and internationally:
– Proximity to raw materials
– Proximity to market
– Availability and price of land
– Governmental influences
– Communication
– Transport infrastructure and parking

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 Good phone/internet signal
Close to suppliers

Market Competitors
Availability of raw Communication
materials
Close to
customers

Type/size of Factors affecting

business Location
Price of
land/premises
Government Infrastructure/Parking
Influence/assistance Cost

Transport links Cost of Labour

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Think of a retail shop in your local town.

(a) Write down the name of the shop.

(b) Does this shop exist anywhere else
(in a different town/country?)
(c) List the advantages of the shop
being situated in its current
location.
(d) List all the disadvantages of the
shops current location.

Spend 15 minutes on this activity

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 Factors to consider when choosing a
business location
• Raw Materials – Raw materials are used in the primary production of
goods eg. Wood, grain, minerals or metal from a mine.

• Infrastructure/Parking – transport network including rail, road and ports

available and utility systems (wiring and piping)

• Government Influences – grants, loans and possibly tax breaks

• Cost – Price of land to buy/rent and cost of labour

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 Factors to consider when choosing a
business location
• Communication – Internet and phone signal

• Market – Close to suppliers and customers. Not too close to competitors

Copy the table below:

Advantages Disadvantages
In groups: (20 minutes)
Identify the advantages and
disadvantages of a business locating overseas.

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 Exam Question and Check List

Past paper 2015 Unit 1

- Q3 – spend approx. 8-10 minutes completing this question.

Learning Check – Do you know . . .

1. The factors that influence the location of businesses locally,
nationally and internationally?

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