Unit 1: Small Business Management

Prerequisites

There are no prerequisites for this unit.

Scope of the unit

Small rather than large businesses make up the large majority of all businesses in the Australian economy. It is the small business sector that provides a wide variety of goods and services for both consumers and industries, such as manufacturing, construction and retail. This, combined with employment opportunities, makes the small business sector a vital component in the success, growth and stability of Australia. Small businesses are tangible to students as they are visible and accessible in daily life. This unit provides an opportunity for students to explore the operations of a small business and its likelihood of success.

Areas of study

Introducing business

In this area of study, students examine the characteristics of a range of businesses and their internal and external environments, and develop an understanding of the nature of business in Australia.  Key knowledge includes:

• features of organisations including for profit and not-for-profit organisations;
• objectives of different types of organisations;
• distinctions between small, medium and large businesses;
• the contribution of small business to the economy;
• the internal and external (operating and macro) environments of a business;
• business ethics and socially responsible management and their impact on various stakeholders.

Small business decision-making, planning and evaluation

There are many decisions to be made and considerable planning to be undertaken prior to the commencement or purchase of a small business. Students also examine the ongoing decisions and planning that must occur throughout the life of the business. Key knowledge includes: 

• the motivation behind starting a small business, including the desire for independence, to make a profit and to fulfil a market need;
• major factors that influence decisions made when establishing a small business;
• business support services, including legal, financial, technological, community-based, formal and informal networks;
• major business planning throughout the life of a small business, including human and physical resource needs, financial planning and sources of finance, and marketing strategy;
• strategies used to undertake ongoing evaluation of small business, including key performance indicators;
• an overview of key legal and government regulations affecting the operation of a small business;
• practices which contribute to ethical and socially responsible management with respect to decisionmaking, planning and evaluation.

Day-to-day operations

In this area of study, students examine the essential, ongoing activities which sustain an ethical and a socially responsible small business and promote its successful growth. To manage a small business, knowledge and skills should be developed in areas including introductory accounting, management of staff, effective use of information and communications technology and introduction to legal requirements. Students examine one or more of these topics.

Assessment

	Outcomes Assessment Tasks Students will have satisfactorily completed this unit when they have demonstrated the specific set of outcomes listed below. Explain and apply a set of generic business characteristics to a range of businesses. Selected from: case study analysis; business research (print and online); development of a business plan; interview and report on contact with business; business simulation exercise; test; computer applications and simulations; analytical exercises; media analysis; investigation and report (written, visual, oral).  Apply decision-making and planning skills to establish and operate a small business, and evaluate the successful management of an ethical and socially responsible small business. Discuss and apply the day-to-day operations associated with the ethical and socially responsible operation of a small business.

Note: in addition to the Assessment Tasks, students will be required to sit an end-of-semester examination.

Reproduced by permission of the Victorian Curriculum and Assessment Authority, Victoria, Australia. Web Address www.vcaa.vic.edu.au