Small Business in Australia

1. Small Business in Australia © Karen Devine 2011

2. What is small business? • There is no universal definition of small business. • Number of employees is usually the criteria to determine the size of a business. © Karen Devine 2011

3. Classification of small business according to number of employees. © Karen Devine 2011

4. Small business in Australia • Over 95% of businesses are classed as small. • Less than 1% of businesses are classed as large. • Small businesses are responsible for much of Australia’s employment. © Karen Devine 2011

5. Small business’ contribution • Small business makes a large contribution to the economy via: • acting as a distributor and supplier for large business. • providing goods and services to consumers. • operating in isolated and regional areas. © Karen Devine 2011

6. Why do small businesses fail? • Over 70% of small businesses fail within their first year of operation. • The most common reasons for failure include: • lack of business knowledge • lack of planning • poor cash flow • poor choice of business location. © Karen Devine 2011

7. Lack of support for small business • Whilst governments recognise the importance of small business, there is general criticism of the support for them. © Karen Devine 2011

8. Governments can contribute to small business failures. • The largest areas for concern for the future success of small business includes: • Overregulation and red tape associated with business establishment and operations. • Excessive tax regulations and tax burden. • Employee laws eg: Unfair dismissal • Lack of support services for small business. © Karen Devine 2011

9. Question Time? • What type of small businesses do your family and friends own? • Have they succeeded? • What might be some of the reasons they ceased operating? © Karen Devine 2011