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Follow the links below to find material targeted to the unit's elements, performance criteria, required skills and knowledge

Elements and Performance Criteria

1. Demonstrate knowledge of costs and benefits of small and micro business
   • Determine business objectives and opportunities
   • Identify benefits and disadvantages of operating a small or micro business
   • Identify start-up and ongoing costs associated with running a small or micro business
2. Analyse obligations and risks of operating a small or micro business
   • Determine legal and regulatory requirements affecting operations of the business
   • Investigate financial decisions relevant to different business models
   • Identify insurance requirements and related mitigation strategies
   • Analyse taxation and record-keeping obligations
3. Identify mechanisms for supporting business success
   • Research licensing, legal and regulatory responsibilities required to ensure compliance of the business
   • Investigate business processes required to maintain appropriate records
   • Identify long-term career goals and/or continuing education to support business objectives
4. Examine opportunities for business learning, mentoring and advice
   • Identify key components of a business plan and skills and knowledge required to develop and monitor the business
   • Evaluate personal attributes required to operate a small or micro business
   • Identify potential mentors, advisers, networks and sources of assistance for the business and how they may be engaged

Performance Evidence

Evidence of the ability to:

analyse financial information impacting on small and micro business

make sound financial decisions in the small and micro business context

examine mechanisms and opportunities to support business development and success.

Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.

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Knowledge Evidence

To complete the unit requirements safely and effectively, the individual must:

list business registration and licensing requirements including:

ASIC Connect business names and registration

registration for Australian business number (ABN), tax file number (TFN) and goods and services tax (GST)

trade and occupational licensing

describe key requirements of Commonwealth, state and territory, and local government legislation and licensing relating to business operations, including:

Work Health and Safety Act

Environmental Protection Act

equal employment opportunity and anti-discrimination

Fair Work Act

Competition and Consumer Act

Income Tax Assessment Act

Taxation Administration Regulations

insolvency

ASIC Act

Privacy Act

Occupational Licensing National Law Act

identify costs associated with running a business:

labour hire

employee entitlements

compliance with occupational licensing and other legislation as required

cash flow management

explain planning processes:

key components of a business plan

risks to be included in a business plan

benefits of business planning

summarise sources of assistance for micro and small business operators:

accountant

bookkeeper

industry associations

Business Enterprise Centres

Australian Taxation Office (ATO)

Australian Securities and Investments Commission (ASIC)

National Occupational Licensing Authority (NOLA)

relevant state industry bodies

explain taxation responsibilities for small and micro business, including:

record keeping, invoicing and GST

preparing the return, lodgement and payment of a business activity statement (BAS)

employee and contractor payroll, and pay as you go (PAYG) taxation.

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