Application
This unit describes the skills and knowledge required to consider the major elements of a business idea, undertake research to determine viability of the business opportunity and present the idea with reference to the legislative frameworks affecting the business.
It applies to individuals who are establishing or operating a micro business for self-employment.
No licensing, legislative or certification requirements apply to this unit at the time of publication.
Elements and Performance Criteria
ELEMENT | PERFORMANCE CRITERIA |
Elements describe the essential outcomes. | Performance criteria describe the performance needed to demonstrate achievement of the element. |
1. Describe business ideas | 1.1 Gather information for business ideas from appropriate sources 1.2 List details of business ideas and opportunities 1.3 Research alternative business ideas in light of available resources 1.4 Specify and list products and services to match business ideas 1.5 Identify and research potential customer information for business ideas 1.6 Identify and take into account available financial, digital technology, business and technical skills when researching business opportunities |
2. Identify market needs | 2.1 Collect information regarding market size and potential from appropriate sources 2.2 Investigate market trends and developments to identify market needs relative to business ideas 2.3 Gather market information from primary and secondary sources to identify possible market needs in relation to business ideas 2.4 Identify ethical and cultural requirements of the market, and their relevance for business ideas 2.5 Identify new and emerging markets and document their features 2.6 Identify and organise information on expected market growth or decline and associated risk factors |
3. Investigate factors affecting the market | 3.1 Identify projected changes in population, economic activity and labour force that may impact business ideas 3.2 Identify movements in prices, and projected changes in availability of resources 3.3 Review trends and developments and identify their potential impact on business ideas |
Evidence of Performance
Evidence of the ability to:
research and analyse information from a range of sources to investigate a business opportunity, including:
financial considerations
digital technologies
market size, potential and trends
ethical and cultural requirements of the market
resource availability
review data for potential impact on the market, products, services and customers
match products and services to the business opportunity.
Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.
Evidence of Knowledge
To complete the unit requirements safely and effectively, the individual must:
locate and outline legislation and regulation relevant to specific micro business opportunities being investigated
identify sources of specialist advice on trends in new and emerging markets and decline and risk factors
summarise benefits and challenges of digital technologies relevant to micro business opportunities
describe appropriate business research methods and data collection tools and software.
Assessment Conditions
Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the Management and Leadership – Small and Micro Business field of work and include access to:
internet access for research
data collection tools and software
relevant legislation, regulations, standards and codes
relevant workplace documentation and resources
case studies, or where possible, real situations
interaction with others.
Assessors of this unit must satisfy the requirements for assessors in applicable vocational education and training legislation, frameworks and/or standards.
Foundation Skills
This section describes language, literacy, numeracy and employment skills incorporated in the performance criteria that are required for competent performance.
Skill | Performance Criteria | Description |
Reading | 1.1, 1.3, 1.5, 2.1-2.6, 3.1-3.3 | Analyses and evaluates textual information to develop research strategies, integrate facts and ideas and meet business requirements |
Writing | 1.1, 1.2, 1.4, 1.5, 2.3, 2.5 | Uses factual information and industry related terminology to complete required documentation |
Oral Communication | 1.1, 1.5, 2.3, 2.5 | Clearly articulates requests using specific and relevant language, and uses listening and questioning techniques to confirm understanding |
Numeracy | 2.1, 3.1, 3.2 | Extracts, evaluates and compares numerical information to determine resources and identify trends |
Get the work done | 1.1, 1.5, 1.6, 2.1, 2.2, 2.5, 2.6, 3.1, 3.2 | Identifies changes to processes, products or services within scope of own business opportunities May invest time in developing and shaping several options before making a final choice, using a combination of lateral and analytical thinking to tailor and strengthen an idea to suit needs, resources and constraints Uses a range of digitally based technology and applications to access and filter data, and then extract, organise, integrate and share relevant information in increasingly effective ways. |
Sectors
Management and Leadership – Small and Micro Business