• BSBSMB301A - Investigate micro business opportunities

Investigate micro business opportunities

This unit describes the performance outcomes, skills and knowledge required to develop business ideas, and to investigate market needs and factors affecting potential markets.Specific legal requirements apply to the management of a micro business.


This work will be undertaken by individuals who are establishing or operating a micro business providing for self employment.

Elements and Performance Criteria



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 the resources available

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 financial, business and technical skills available 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 impact on 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 the labour force that may affect 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

Required Skills

Required skills

analytical skills to identify market trends and developments, and to assess their impact on products and services

communication skills to request information from diverse sources

lateral thinking skills to generate ideas for potential businesses

literacy skills to interpret business and market information

numeracy skills to analyse data to aid business/market research

research skills to investigate market needs.

Required knowledge

ethical and cultural requirements

research methods and data collection tools

sources of business and market information.

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:

thorough investigation of business opportunities and ideas

clearly identified products/services and customer information for each business idea

thorough collection and analysis of market information and associated factors relating to business ideas

knowledge of ethical and cultural requirements.

Context of and specific resources for assessment

Assessment must ensure:

access to relevant documentation

candidate's individual circumstances and work in the context of establishing or running a micro business, 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 relating to the development of the candidate's own business idea

review of report on an existing micro or small business known to the candidate

oral or written questioning to assess knowledge of research methods and data collection tools

review of market information gathered to identify possible market needs in relation to business ideas

assessment of reviewof trends and developments and their potential impact on business ideas.

Guidance information for assessment

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

BSBSMB302A Develop a micro business proposal.

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.

Business ideas may be influenced by:

amount and type of finance available

cultural, family and/or community expectations

expected financial viability

finance required

lifestyle sought

number and type of competitors

returns expected or required by owner

skills of owner/operator

Appropriate sources may include:

Aboriginal and cultural councils and incorporated bodies


Australian Bureau of Statistics

business advisory services

business brokers

business consultants

business incubators

business mentors and peers

current affairs


financial institutions

government agencies set up to provide and assist business development for example Indigenous Business Australia (IBA), Business Entry Point (www.business.gov.au)

industry/trade associations


lawyers and providers of legal advice

local councils

friends, family and community

market research publications

national and international publications

online gateways

role models and other successful businesses

training providers

Customer information may include:

customer characteristics

marketing issues to meet needs

specialised needs of customers

Primary sources may include:

group interviews

market testing a segment of the market

interviews (face-to-face and telephone)





Secondary sources may include:

chambers of commerce data

data held by research and industry specific organisations

polls published by advertising and media companies

published government statistics

university databases

Ethical and cultural requirements may include:

codes of practice

cultural expectations and influences

ethical principles

government policies and guidelines

societal expectations

social responsibilities, for example protection of children, environmental issues

New and emerging markets may include:


export market

niche or segment of the market not currently penetrated

Trends and developments may include:

changes in technology

demographic trends

ecological/environmental trends

economic trends (local, regional, national, international)

government activities, fro example interest rates, deregulation

industrial trends

social and cultural factors


Unit sector

Competency Field

Management and Leadership - Small and Micro Business

Employability Skills

This unit contains employability skills.

Licensing Information

Not applicable.