Transcript The Importance of Small Business

The Importance of
Small Business
 An
What is a Small Business?
enterprise is categorised as a small
business if:
 It is independently owned and
operated
 It is controlled by owners or managers
who contribute most (if not all) the
operating capital.
 The owner / manager is the main
decision maker (risk taker).
ABS says small business is…
A
Non manufacturing
business with less than 20
employees.
A manufacturing business
employing less than 100
people
 (medium
sized biz employ 20-99
staff. Large biz employ 200 or
more staff.)
 Sometimes small and medium size
biz are grouped together as SME’s
(small / medium enterprises)
Small business contributes to the
Australian economy
 Aust
has over 1 million small,
privately owned biz employing 3
million workers.
 Non-agricultural small businesses
account for 1/3 of Aust economy
and 40% total N.
 Creating
jobs
 Help improve GDP and living
standards
 Increase exports (although <5% of
small biz export G&S)

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Contribute to growth of regions and
communities.
Innovation: 10% of investment in R&D
Skills: improves skills of workforce.
Strengthens family ties: 2/3 small biz are family
owned.
Will Small Business continue to be
important?

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New technology and internet enables small biz
to obtain information, access global markets and
achieve a high quality output at a relatively cheap
price in a way that they could not before.
This makes small biz more competitive. Larger
businesses do not always have an advantage due
to size anymore. However, survival is still
difficult for small biz. Many do not survive their
first year.