Disney, McDonalds, Burger King, Procter & Gamble, Johnson & Johnson, Microsoft  what do they all have in common? They all started during a recession or depression. The message, delivered to around 40 would-be entrepreneurs at a workshop in Stratford, East London, is clear: dont let bad economic headlines put you off. Most of the people at this session are not aiming to create new multinational corporations. But during the coffee break, they seem pretty confident that their ideas can prosper even in the current climate. Im here to find out about starting up a business providing CVs to school leavers, says Jessica Lyons, wearing a lapel badge with My First CV, the name of the future business, written on it. For my particular business idea I think this is the ideal time, because there are more people than ever out there looking for work. The recession is causing a spike in interest in setting up small businesses. Another interesting example was from a gym instructor who wants to take his equipment to companies around London, giving people a lunchtime workout without their having to leave their offices. Most of the would-be entrepreneurs in Stratford are looking at potential opportunities in the tertiary sector which dont require large amounts of start-up finance to purchase capital equipment and which rely more on their own skills and interests. 

20 marks, 40 minutes

1. Define the term tertiary sector. [2]

2. Outline the factors of production needed to set up the business providing CVs to school leavers. [4]

3. Explain two reasons why new businesses might start up in the tertiary sector. [4]

4. Discuss the advantages and disadvantages of setting up a business in a recession. [10]

Key concept question 20 marks, 40 minutes

With reference to one or two organization(s) that you have studied, evaluate the importance of innovation in starting a new business. [20]