Grade 10 Business Studies Business and its Environment – Business Activities (7 Lessons) Notes

Learning objective: Define business and explain why business activities are important to individuals, communities and the national economy.

Definition: A business is an organised activity that produces or sells goods and services to satisfy human needs and wants, usually to earn profit.

Key points

• Business activities provide goods (e.g., maize flour, school uniforms) and services (e.g., hairdressing, mobile money).
• They create jobs — formal (tea factory workers) and informal (Jua kali artisans, market vendors).
• They earn income for households and collect revenue for government (taxes) which funds schools, roads, health.
• Business activities encourage innovation (m‑Pesa started in Kenya and changed payments).

Kenyan examples: Tea processing factories in Kericho, horticulture farms in Naivasha, Jua kali workshops in Kibera/Nairobi, Safaricom (telecom) providing M‑Pesa.

Activity: In pairs, list five local businesses near your home/school and say how each contributes to the community (jobs, goods, services).

Learning objective: Explain the difference between needs and wants with everyday examples.

Needs are things necessary for survival and dignity (food, shelter, clothing, basic healthcare, basic education). Wants are things that improve comfort or pleasure but are not essential (smartphones, branded clothes, expensive meals).

Activity: Make two columns on paper: Needs and Wants. Ask family members what they consider a need and a want. Discuss differences in responses.

Short task: Give three examples where a want can become a need (e.g., a phone for a student doing online lessons).

Learning objective: Identify and analyse the types of economic resources used to satisfy needs and wants.

Main categories

1. Land — natural resources (farmland, minerals, water). Example: tea farms in Kericho, Nyayo tea zones.
2. Labour — human effort (farm workers, teachers, artisans). Example: Jua kali artisans in Nairobi.
3. Capital — manufactured goods used to produce (machines, buildings, vehicles). Example: tractors, tea processing machines, sewing machines.
4. Enterprise (entrepreneurship) — people who combine the other factors to start businesses (small shop owners, agribusiness entrepreneurs).

Activity: Visit a local business (e.g., bakery or kiosk). Identify and note down its land, labour, capital and entrepreneur. Take photos or draw what you observe.

Class discussion: Why is entrepreneurship important for Kenya’s development (jobs, innovation, value addition)?

Learning objective: Classify business activities into types and give Kenyan examples.

Major classes

• Primary — extraction and production of raw materials (farming, fishing, mining). Example: maize farming in Uasin Gishu.
• Secondary — manufacturing and processing (factories, cottage industries). Example: tea processing factories, textile mills.
• Tertiary — services (transport, banking, retail, education, health). Example: matatu operators, MPesa agents, schools.
• Quaternary — information and knowledge services (IT, research). Example: software firms in Nairobi, tech hubs.
• Quinary — top-level decision making and high-level services (government, top management, policy services).

Activity: Provide students with 12 business cards/pictures (local farm, bakery, internet cafe, hospital). Ask them to sort into Primary, Secondary or Tertiary groups.

Class example: Horticulture in Naivasha (Primary), packing and cold storage (Secondary), export agents and cargo transport (Tertiary).

Learning objective: Examine internal factors that influence how a business operates and competes.

Key micro factors

• Owners / management: quality of decisions, leadership and planning.
• Workers / labour: skills, motivation and productivity.
• Finance: availability of capital and cash flow management.
• Suppliers: reliable supply of raw materials and credit terms.
• Customers: tastes, loyalty and spending power.
• Location: access to market, transport costs (e.g., a kiosk on a busy road sells more).

Kenyan class case: A Nairobi kiosk near a school sells more stationery than a similar kiosk in a quiet estate — location and customers matter.

Activity: Role play: students take the roles of owner, supplier and customer to negotiate prices and delivery terms for a small food business.

Learning objective: Explain external factors (PESTLE) and how they affect businesses in Kenya.

PESTLE summary

• Political: government policy, stability, trade agreements. Example: export rules for tea/flowers, county regulations for markets.
• Economic: inflation, interest rates, unemployment, GDP growth. Example: high fuel prices increase transport costs for traders.
• Social / Cultural: population trends, culture, education. Example: youth demand for tech jobs and mobile services.
• Technological: new technologies change how businesses work. Example: M‑Pesa and mobile banking, e‑commerce platforms.
• Legal: laws and regulations, labour laws, tax rules. Example: requirement for business permits, minimum wage for employees.
• Environmental: weather, climate change, resource depletion. Example: drought affecting crop yields.

Activity: In groups, choose a Kenyan firm (e.g., a tea exporter or a small online shop). Prepare a PESTLE poster showing how each factor could help or harm the business.

Learning objective: Reinforce learning, carry out a short field investigation and appreciate the role of business activities in Kenya.

Class project (suggested)

1. Form groups of 4–5. Choose a local business (kiosk, barber, Jua kali, farm).
2. Investigate: What needs/wants does the business serve? What resources does it use? What micro and macro factors affect it?
3. Prepare a 5‑minute class presentation (poster or slides) and a 1‑page report with recommendations for improving the business.

Assessment ideas

• Short quiz: define needs vs wants; list four factors of production; give two micro and two macro factors.
• Group project mark: investigation quality, teamwork, presentation, recommendations.
• Practical: field visit notes and photos/drawings.

Reflection: Ask learners to write two sentences about how businesses they studied affect their family or community (jobs, services, prices).