1. © Karen Devine 2011

2. There is no universal definition of small business. Number of employees is usually the criteria to determine the size of a business. © Karen Devine 2011

3. Number of employeesClassification < 5Micro 5 - 20Other Small Business < 20Small 20 – 200Medium 200 +Large © Karen Devine 2011

4. Over 95% of businesses are classed as small. Less than 1% of businesses are classed as large. Small businesses are responsible for much of Australia’s employment. © Karen Devine 2011

5. Small business makes a large contribution to the economy via: a) acting as a distributor and supplier for large business. b) providing goods and services to consumers. c) operating in isolated and regional areas. © Karen Devine 2011

6. Over 70% of small businesses fail within their first year of operation. The most common reasons for failure include: a) lack of business knowledge b) lack of planning c) poor cash flow d) poor choice of business location. © Karen Devine 2011

7. Whilst governments recognise the importance of small business, there is general criticism of the support for them. © Karen Devine 2011

8. The largest areas for concern for the future success of small business includes: a) Overregulation and red tape associated with business establishment and operations. b) Excessive tax regulations and tax burden. c) Employee laws eg: Unfair dismissal d) Lack of support services for small business. © Karen Devine 2011

9. What type of small businesses do your family and friends own? Have they succeeded? What might be some of the reasons they ceased operating? © Karen Devine 2011