What goals does a new business set, and why do they differ between businesses?
What business aims and objectives are; financial aims and objectives (survival, profit, sales, market share, financial security) and non-financial aims and objectives (social objectives, personal satisfaction, challenge, independence and control) when starting up; and why aims and objectives differ between businesses.
A focused answer to Edexcel GCSE Business 1.3.1, covering what business aims and objectives are, financial aims (survival, profit, sales, market share, security) and non-financial aims (social, personal satisfaction, challenge, independence), and why they differ between businesses.
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What this dot point is asking
Edexcel wants you to define business aims and objectives, list the financial and non-financial goals a start-up might set, and explain why these goals differ from one business to another.
Aims and objectives
The two work together: the aim sets the direction ("become a successful local cafe"), and the objectives are the concrete steps that get there ("sell 100 coffees a day by the end of year one"). Good objectives are often SMART (specific, measurable, achievable, realistic, time-bound) because that makes progress easy to check. Setting clear aims and objectives gives a business direction, motivates staff, and provides a yardstick to measure success against.
Financial aims and objectives
For most start-ups, survival comes first. A new business is fragile, cash is tight and customers are few, so simply staying open and covering costs is the realistic early goal. Once established, the focus often shifts to profit, sales and market share, which are about growing rather than surviving. Financial security, a steady reliable income, matters to owners who left a salaried job and need the business to support them.
Non-financial aims and objectives
Many people start a business for reasons that are not mainly about money. Independence and control is one of the most common motives: the freedom to decide what to do and how. Personal satisfaction and challenge drive owners who want to build something of their own. Social objectives matter to founders who want their business to do good, for example using sustainable materials or supporting a local cause. These goals sit alongside the financial ones and often explain why someone started up in the first place.
Why aims and objectives differ
There is no single "right" set of objectives. A charity-minded social enterprise and a fast-growing tech company will set very different goals because their owners want different things and their circumstances differ. Edexcel rewards you for explaining the reasons for the difference, not just stating that they differ.
Try this
Q1. State one non-financial objective a person might have when starting a business. [1 mark]
- Cue. Independence and control, personal satisfaction, challenge, or a social objective.
Q2. Explain one reason why survival is often the main objective of a new business. [3 marks]
- Cue. A new business is fragile with little cash, so staying open and covering costs in the first year matters more than profit.
Exam-style practice questions
Practice questions written in the style of Pearson Edexcel exam questions on this dot point, with worked answer explainers. The year tag is the paper they imitate, not the source.
Edexcel 20192 marksState two financial objectives a new business might set. (Paper 1, Section A)Show worked answer →
A 2-mark state question, one mark per correct financial objective.
Any two of: survival, profit, sales (increasing sales/revenue), market share, financial security.
Markers want two distinct financial objectives from the specification list. Non-financial objectives (independence, personal satisfaction) do not count here, so keep to the financial list.
Edexcel 20216 marksDiscuss why the objectives of a new sole trader might differ from those of a large, established company. (Paper 1, Section B)Show worked answer →
A 6-mark discuss question rewards developed comparison with a judgement.
Chain one: a new sole trader often has survival as the main objective, because in the first year cash is tight and the business is fragile, so simply staying open and covering costs matters more than big profits. Non-financial aims like independence and personal satisfaction are also strong, as that is often why the owner started up.
Chain two: a large established company is past survival, so it pursues objectives like profit, growth and market share to satisfy shareholders, and may set social objectives to protect its reputation. A strong answer judges that objectives differ mainly because of the size, age and ownership of the business and the motives of the owner: a fragile start-up prioritises survival and personal goals, while a secure large firm prioritises profit and growth. Markers reward developed reasons for the difference, not two separate lists.
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Sources & how we know this
- Pearson Edexcel GCSE (9-1) Business (1BS0) specification — Pearson Edexcel (2017)