Clark Alicia Assignment2 00203048
Assignment One - Alicia Clark
Word Count: 1381
In 1995 there was a report released, which was performed by David Karpin, which looked into the various skills, or lack thereof, of managers in small businesses in Australia. The report depicted that, throughout Australia, there is a poor small business image. This refers to how small business and enterprise are viewed in the community and what is holding people back into entering into the small business world. Primary points as to why there was a poor small business image include long hours, career development and stability, red tape/government barriers, financial assistance and business growth and profitability. The Karpin Inquiry (1995), made many recommendations but the main ones that concentrated on providing better social awareness and attitude were directly related to education and community awareness. It is also important to understand that small business is different to the big business in many areas but most importantly how it is managed and by whom.
A small business is defined by the Australian Bureau of Statistics (ABS, 2012) as an active business with an Australian Business Number (ABN) which employs up to 19 employees and a medium business employs up to 199 employees. These fall into the category of being Small and Medium Sized Enterprises (SME’s). Small businesses are profoundly important to the Australian economy and growth. The Government’s job is to create the right environment for business to grow and to assist in this by reducing red tape and enhancing small business skillset (Parker, 2000). One of the major differences of an SME to a large business is the role or duty of the owner/manager. In a SME the owner is generally an owner/manager and will take on various roles including planning, day-to-day management, finances, organising, marketing etc. This can also involve many hours of work, which could affect many things such as quality family time. Whereas, in larger firms, these roles are
Word Count: 1381
In 1995 there was a report released, which was performed by David Karpin, which looked into the various skills, or lack thereof, of managers in small businesses in Australia. The report depicted that, throughout Australia, there is a poor small business image. This refers to how small business and enterprise are viewed in the community and what is holding people back into entering into the small business world. Primary points as to why there was a poor small business image include long hours, career development and stability, red tape/government barriers, financial assistance and business growth and profitability. The Karpin Inquiry (1995), made many recommendations but the main ones that concentrated on providing better social awareness and attitude were directly related to education and community awareness. It is also important to understand that small business is different to the big business in many areas but most importantly how it is managed and by whom.
A small business is defined by the Australian Bureau of Statistics (ABS, 2012) as an active business with an Australian Business Number (ABN) which employs up to 19 employees and a medium business employs up to 199 employees. These fall into the category of being Small and Medium Sized Enterprises (SME’s). Small businesses are profoundly important to the Australian economy and growth. The Government’s job is to create the right environment for business to grow and to assist in this by reducing red tape and enhancing small business skillset (Parker, 2000). One of the major differences of an SME to a large business is the role or duty of the owner/manager. In a SME the owner is generally an owner/manager and will take on various roles including planning, day-to-day management, finances, organising, marketing etc. This can also involve many hours of work, which could affect many things such as quality family time. Whereas, in larger firms, these roles are