• BSBSMB201A - Identify suitability for micro business

BSBSMB201A
Identify suitability for micro business

This unit describes the performance outcomes, skills and knowledge required to set up a micro business.Specific legal requirements apply to the management of a micro business.

Application

This unit requires individuals to examine their potential for entering a micro business.


Elements and Performance Criteria

ELEMENT

PERFORMANCE CRITERIA

1. Explore potential business ideas

1.1. Identify products and services that are available from local micro and small businesses

1.2. Identify products and services that are not available locally

1.3. Determine opportunities for new micro businesses based on gaps in the provision of goods and services

1.4. Identify and utilise a range of sources to gather information about micro business opportunities identified

1.5. Outline the processes to be undertaken by the micro business to provide the products/services

2. Compare personal skills and aspirations with micro business opportunities

2.1. Identify personal reasons for entering into a micro business in realistic terms of own personal commitments, expectations and capabilities

2.2. Match personal capabilities realistically with the identified business opportunities

2.3. Examine personal commitments, expectations and capabilities to realistically identify impacts on the preferred business opportunity

2.4. Examine options to address and minimise the negative impacts and strengthen the positive impacts of these issues

3. Access business learning opportunities, mentoring and advice

3.1. List the skills and knowledge required to develop and operate the business opportunity

3.2. Identify and interpret business information and terminology

3.3. Identify gaps in personal skills and knowledge which are needed for the business

3.4. Identify appropriate learning opportunities to rectify gaps in personal skills and knowledge

3.5. Identify potential mentors, advisers, networks and sources of assistance for the business

Required Skills

Required skills

analytical skills to prioritise micro business opportunities and to identify own skills gaps

communication skills to describe ideas, and own personal and life goals

literacy skills to record micro business opportunities, personal expectations, commitments and skills

research skills to investigate micro/small business products and services and the likely demand for products and services.

Required knowledge

characteristics of micro/small business and its environment

learning opportunities and sources of assistance for micro/small business operators

personal skills required for micro business

products and services that are available from local micro/small businesses and those that are not available.

Evidence Required

The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Overview of assessment

Critical aspects for assessment and evidence required to demonstrate competency in this unit

Evidence of the following is essential:

sound description of the potential micro business opportunity

clear description of own personal and business capabilities

effective matching of personal attributes with micro business opportunities and identification of personal development opportunities

knowledge of learning opportunities and sources of assistance for micro/small business operators.

Context of and specific resources for assessment

Assessment must ensure:

access to relevant documentation

candidate's individual circumstances and work are the basis for assessment.

Method of assessment

A range of assessment methods should be used to assess practical skills and knowledge. The following examples are appropriate for this unit:

portfolio of evidence including a short oral or audiovisual presentation

review of personal skills plan

oral or written questioning to assess knowledge of own personal and business capabilities

review of personal capabilities matched with identified business opportunities.

Guidance information for assessment

Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example:

BSBSMB301A Investigate micro business opportunities.


Range Statement

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.

Micro and small businesses may include:

community owned and/or run businesses

family owned and/or run businesses

franchise

government owned business

sole trader owned and/or run business

other such forms of small businesses which meet the accepted definition of a small business

Range of sources may include:

Australian Bureau of Statistics

business advisors

business incubators

business people

business/trade associations

friends, family and community

government agencies

internet

local government

market research publications

mentors

teachers

Personal commitments, expectations and capabilities may include:

community commitments and expectations

cultural values, behaviours and expectations

current and preferred lifestyle

customer expectations

family commitments and expectations

other business interests or employment

own financial background, commitments and aspirations

personal motivation and entrepreneurship

personal principles and ethics

time commitments and availability

Business information and terminology may include:

terms frequently used in business such as:

balance sheet

cost

liabilities

margin

mark-up

pricing

profit

return

sales

information relating to businesses such as:

compliance with legislation, regulations and codes of practice

financial management

marketing

information technology (including e-business)

production

quality assurance

Personal skills and knowledge may include:

ability to prioritise obligations and commitments

communication skills both with own community and other communities

cultural knowledge and sensitivities

financial management skills and business knowledge

life skills (including assertiveness)

literacy and numeracy skills

time management

marketing and selling skills

planning skills

positive relationships with family, customers, suppliers, staff and community

self-promotion and self-image

specific industry and local knowledge

Learning opportunities may include:

coaching, mentoring and/or supervision

courses

informal training

personal study

recognition of competence or skills recognition

work experience

workplace training


Sectors

Unit sector


Competency Field

Management and Leadership - Small and Micro Business


Employability Skills

This unit contains employability skills.


Licensing Information

Not applicable.