PatchPod is a small business founded by Leila, a former teacher. PatchPod sells repair kits for school uniforms and sportswear. The kits include thread, fabric patches and online video instructions. Leila’s aim is not only to make a profit, but also to reduce textile waste and help families spend less on clothing. PatchPod currently buys materials from local suppliers, assembles the kits in a rented workshop and sells mainly through its website.

Demand has increased after several schools recommended PatchPod to parents. Leila is considering changing the business model by offering a paid repair service as well as selling kits. This would require recruiting part-time employees, renting a larger workshop and spending more on promotion. Leila is concerned that managing the repair service could distract her from the original purpose of the business.

Highland Hive began when two friends, Omar and Priya, kept bees on rented farmland and sold jars of honey at a weekend market. The business now has three possible activities. It can continue harvesting honey from its own beehives, begin producing honey-based snack bars in a small kitchen, or open a visitor centre offering beekeeping experiences and a shop. Priya also wants to use customer booking data and online reviews to improve the visitor experience.

Omar believes Highland Hive should remain focused on honey production because the business is small and has limited finance. Priya believes that operating across several economic sectors would reduce risk and create a stronger brand. Both owners want the business to behave responsibly by protecting bees and educating customers about biodiversity.

PulsePod (PP)

PulsePod (PP) is a small private business that designs and sells wearable heart-rate monitors for recreational runners. PP combines several resources: software designers, electronic components, finance from the founder, rented workshop space and customer data from its app. PP currently sells the physical monitor and also offers a subscription service that gives training advice.

PP’s founder, Rina, believes that PP should “create value responsibly”. Customer reviews are positive about the accuracy of the product, but some customers complain about slow repairs and confusing subscription charges. Rina is considering two options for the next year.

• Option 1: Invest in operations management by buying testing equipment and training repair staff. This should reduce faulty monitors and repair delays.
• Option 2: Invest in marketing by launching a digital promotion campaign and simplifying subscription pricing.

Table 1: Selected forecast data for PP for next year

TerraThread (TT)

TerraThread (TT) began as a small waste-collection service, collecting discarded cotton from clothing factories. TT now operates in more than one economic sector. It collects waste cotton, manufactures reusable shopping bags, sells bags through a market stall and uses online customer data to advise local retailers about sustainable packaging trends.

TT’s owner, Leila, wants to expand, but she is unsure which activity should receive most of the available investment. She has narrowed the choice to two options.

• Option 1: Expand manufacturing by buying an additional sewing machine and employing two production workers.
• Option 2: Expand knowledge-based services by developing a paid data report for retailers on sustainable consumer behaviour.

Table 2: TT’s current annual performance by activity

Table 3: Forecast effects of TT’s two expansion options

CleanSteps is a proposed start-up founded by Anika, a university student. The business idea is to collect used running shoes from sports clubs, clean and repair them, and sell them online at low prices to beginner runners. Any shoes that cannot be resold would be donated to a local charity or recycled. Anika’s market research suggests that some young customers like sustainable fashion, but many are unsure about buying used footwear.

Anika has technical knowledge of online selling and has found two sports clubs willing to supply used shoes. However, she has limited savings, no permanent storage space and no experience of quality control. A large sports retailer has recently started promoting discounted new shoes. Anika is preparing a business plan and is deciding whether to launch CleanSteps next month or delay the launch for six months to carry out more research and secure additional finance.

MedMosaic (MM)

MedMosaic (MM) is a proposed start-up that will provide online language support for patients booking medical appointments. The founders, Ana and Ravi, identified a gap in the market after local clinics reported missed appointments caused by language barriers. MM would operate mainly in the quaternary sector, using specialist software and translators’ knowledge to match patients with clinics.

Ana and Ravi have prepared a business plan for investors. They are considering two strategic options.

• Option 1: Broad low-cost strategy. MM would offer a standardized translation booking service to many clinics at a low price.
• Option 2: Focused differentiation strategy. MM would offer a premium service for specialist clinics, including medically trained translators, appointment reminders and customized patient support.

Table 4: Forecast first-year data for MM

RepairShare (RS)

Read the resources and answer the questions that follow.

Resource 1 — Background of the social enterprise

RepairShare (RS) is a social enterprise founded by Amina Diallo in a city where many low-income households throw away electrical appliances because repair services are too expensive. RS collects donated broken appliances, trains unemployed young adults to repair them, and sells the repaired goods at affordable prices. It also offers a low-cost repair service and free online guides to help households maintain appliances.

RS uses resources such as donated appliances, a small workshop, tools, trainers, volunteer mentors, finance from grants, and customer repair data. Its outputs include repaired goods, repair services and training places. Amina’s aim is to reduce electronic waste while creating employment opportunities. RS has grown quickly, but its four business functions are under pressure: operations struggles with inconsistent quality, marketing has limited information about target customers, finance is concerned about cash flow, and human resources finds it difficult to retain skilled trainers.

Resource 2 — Selected information for RS, 2025

Resource 3 — Social-media statistic

RS has 18 000 followers on its main social-media platform. A recent post showing a trainee repairing a washing machine was shared 6 200 times, but only 140 users clicked through to book a repair.

Resource 4 — Quotation from a stakeholder

A local community leader said: “RS is trusted because it helps people and reduces waste, but some families worry that repaired appliances may not last.”

Resource 5 — Possible development

A national retailer has offered RS a two-year partnership. The retailer would provide a steady supply of returned appliances and promote RS in its stores. However, RS would need to increase workshop capacity, improve quality control and decide whether to focus more on selling repaired goods or providing repair services.

FarmLink Learning (FLL)

Read the resources and answer the questions that follow.

Resource 1 — Background of the social enterprise

FarmLink Learning (FLL) is a social enterprise established by two former teachers, Mateo and Lina, to improve incomes for small farmers and teach urban children about sustainable food. FLL began by arranging school visits to farms. It now leases a small plot of land, grows vegetables, processes surplus vegetables into sauces, runs educational farm visits, and sells subscription data reports to restaurants about seasonal local produce availability.

FLL’s activities therefore operate across several economic sectors. Mateo believes the social enterprise should invest in a new processing kitchen to make more sauces. Lina believes FLL should instead develop its educational visits and produce-data reports because these services have lower direct costs and support FLL’s mission. Both agree that FLL must remain sustainable and avoid confusing customers about what the business actually does.

Resource 2 — Revenue by activity, 2025

Resource 3 — Social-media statistic

A video of students harvesting vegetables received 95 000 views and 8 400 likes. A post about FLL’s produce-data reports received only 1 100 views but led to 16 enquiries from restaurants.

Resource 4 — Quotation from a farmer member

“FLL should not become just another food manufacturer. Its best work is connecting farmers, schools and restaurants, but the sauces do use vegetables that might otherwise be wasted.”

Resource 5 — Possible development

A regional supermarket has offered FLL shelf space for its sauces if FLL can triple monthly output within six months. A group of schools has also asked FLL to design a paid online learning programme for sustainability education.

WarmSteps (WS)

Read the resources and answer the questions that follow.

Resource 1 — Background of the social enterprise

WarmSteps (WS) is a start-up social enterprise founded by Priya Shah to reduce childhood illnesses linked to cold and damp homes. WS plans to sell low-cost home-insulation kits made from recycled textile fibres. The kits can be installed by households using simple instructions, or by trained local installers for an additional fee. WS will reinvest any surplus into free kits for families referred by health charities.

Priya has developed a prototype and completed small-scale testing with 40 households. She has no experience of managing employees or large suppliers, but she has strong contacts with health charities and a local college that could train installers. To launch, WS must buy equipment, secure a reliable supply of recycled textiles, obtain safety certification and create a website for orders. Priya must decide whether to launch slowly in one city or seek finance for a faster regional launch.

Resource 2 — Start-up estimates

Resource 3 — Social-media statistic

A local health charity shared WS’s prototype video. It received 52 000 views and 3 900 comments. In an online poll, 68% of respondents said they would consider buying a kit if the price was lower than USD 120.

Resource 4 — Quotation from a potential supplier

“We can supply recycled textile fibres at a low price for the first six months, but after that our price will depend on demand from larger manufacturers.”

Resource 5 — Market research finding

In interviews with 20 households, customers liked the social purpose of WS but were worried about installation difficulty, product safety and whether a new business would still be operating if they needed support later.