Project objective
This paper analyzes the literature review on small businesses in Australia and their contribution to employment in the country. There are more than 7.5 million small businesses in Australia and they contribute enormously to the employment both formal and informal in Australia (Hougaz,2015) This paper analyzes the past literature that has ever been written on the subject and prepares a project proposal on the same topic. The paper begins with the background of the research subject together with a justification of the research. The objectives of the research are to measure the impact of small businesses on employment in Australia. The report also discusses the research objective and methodology.
The objective of this research is to determine the role played by small businesses in contributing to employment in Australia. Small businesses contribute to more than 60% of Australia`s economy and it is clear that there are many people who depend upon small businesses for employment (Sheedy, 2011). These businesses range from small scale farming, horticulture, groceries and shops. There has been a pattern of independent ventures becoming very popular in Australia. The study will be aiming at establishing the contribution of small business to reducing unemployment in Australia.
By the end of the year 2016, approximately 5.1 million Australians were employed in small businesses. The small businesses accounted for the largest share of total employment in Australia. It contributed 44% of the total employment rate in the economy of Australia. The medium sized businesses represent 23% while the large businesses represent 31%. According to Australian Bureau of Statistics defines a small business as a business that employs less than 20 people. A small business can be categorized into:
A non-employing business which is a sole proprietor and partnerships without any employees. The micro-businesses which have between 1-4 employees (Crawley& Sullivan, 2016). The other category of small business according to ABS is the small business that employs between 5 employees and 19 employees.
The 2014 statistics indicate that in 2014, there were about 9.9 million employees who were working in Australia. Out of this, 2.5 million employees worked in small businesses.
Small business enterprises have made a lot of positive contributions to the Australian economy. When the data from Dun and Bradstreet on unlisted partnership show that different definitions recognize different definitions of independent ventures. Independent business enterprises play a very critical role in the economy of Australia. The main role of small businesses has been felt especially through the creation of employment. Statistics from the ABS indicate that 72% of the businesses that are ranked in the small business category which employs between one and four employees (Smith, 2016). This does not include the owner pf the business who is also benefiting as a result of the operations of the business. From the statistics, out of the 9.9 million people who were employees in the year 2014, about a third of those people worked in the small business sector (Smith, 2016). In the year 2011, over 2 million effectively exchanging ventures were independent ventures meaning that they were either sole proprietors or partnerships.
Project scope
According to (Leow, Murphy &Hooper, 2010), the greatest contribution of small business to employment in Australia is in the Agribusiness sector. In this sector, the private sector contributed to more than 86% of every penny of work for the whole small business enterprises in the country. This is due to the nature of agriculture being labor intensive despite the increased use of machines in farming. The small scale agribusiness sector employs more than 780,000 people in Australia. The small-scale agriculture in the agriculture sector mainly comes from the horticultural sub-sector. The sub-sector is highly productive and vibrant in Australia and it has employed many young people from colleges and universities (Information resources management association. 2016). Many of the farmers engage in the production of fruits and vegetables for export and the surplus is consumed locally. Most of the owner of this businesses employ between one person and four people depending on the size of the enterprise. The contribution and commitment to work for employees in agribusiness is very high compared to other sectors.
Australians also depend on creative enterprises as a source of employment. According to(Meyer, 2017), advancement of technology has provided many Australians with an opportunity to invest in small-scale technological ventures. Some of the enterprises are followers of technology developed by other people or are innovators in their own right. Innovative business related to technology contributes up to 12% of the contribution to small scale businesses. This has ensured that the sector directly employees about 460,000 Australians. The sub-sector has contributed greatly to the employment of young people especially those who have completed college education.
According to the OECD (2010), the commitment of private businesses is increasing. This has mainly been due to advances which have made it easy for independent small business enterprises to overcome restrictions and barriers to growth and have therefore ventured to big markets.
According to (Curtis, 2012) The small scale enterprises in Australia are underutilized. He argues that most small business enterprises have not gotten the support and protection that they need from the Australian Government. He explains that most small scale business enterprises struggle to get finances from financial institutions to aid their growth. The contribution of the small business enterprises to employment is therefore very little compared to what things should be in the ideal situation. The collapse of small businesses especially start-ups have led to the loss of employment and income for many people in Australia. The small business should be given more subsidies and protection so that they can grow and improve their contribution to employment in Australia.
How has the development of small business enterprises contributed to employment creation in Australia?
Does the collapse of small business enterprises contribute to loss of employment in Australia?
What proportion of Australian working population is employed by small business enterprises?
What is the average income of people working in the small business enterprise sector in Australia?
If the small business sector has contributed to employment, the levels of unemployment in Australia will reduce and if small businesses continue to employment, it, therefore, means the collapse of the small businesses results in loss of jobs.
Literature review
This study will use a combination of both Qualitative Research and Quantitative research methods. The nature of this study requires the use of both research methods because the variables being examined are both descriptive and numerical.
Data used in the study will be collected using both primary and secondary data collection methods. The study will mostly rely on secondary data to obtain information on the research topic from different sources. One of the sources of data for this research topic is the data from government department’s websites. The statistics by the Government of Australia will be very important in collecting the relevant information to aid in this research project. The Australian Bureaus of Statistics will be a major source of data and statistics in this study. The website of the Bureau www.AUS.Gov.Au,www.treasury.gov.au will be an important source.
Data from various books written by different authors and researcher will also be useful in conducting this research. The books to be used in this research are the recently published books that have recent and up to date information on the state of the small business enterprises in Australia. The books used in the research are of distinguished academic excellence and research based on real facts (Msweli, 2011). The research will also depend on journal articles. The journal articles are peer reviewed to make sure that they meet academic standards set by various professional bodies and institutions. The thesis and dissertations will be used in this study. Data collected by the various researchers on the subject and has not been published but was presented for the award of various academic honors will be used. The thesis and dissertations will be sourced from different university libraries.
Data collected from the study will be grouped depending on the specific characteristics of the data. The grouped data is then compared using subgroup comparison where bi-variate and multivariate analysis is done on the data to come up with an explanation of various variables affecting the subject being researched.
The absence of enough reference materials on exact statistics required in the study.
The small enterprise owners were not involved when conducting this research. The secondary data used in this research was obtained from mainly government sources which did not seek the opinion of the entrepreneurs.
Time for data collection and analysis is very limited since the volume of data being analyzed is so huge.
|
Activity |
Start time |
End time |
|
Preparation for research |
1/6/2017 |
1/6/2017 |
|
Collection of data |
2/6/2017 |
17/6/2016 |
|
Summarizing and combining data from different source |
18/6/2017 |
20/6/2017 |
|
Data analyses |
21/6/2017 |
24/6/2017 |
|
Preparation of final report |
25/6/2017 |
28/6/2017 |
|
Presentation of report |
29/6/2017 |
Conclusion
The research proposal on contribution of small enterprise on employment in Australia shows that a lot of research has been done on the subject. Different authors have different views and perceptions about the role of small enterprises in employment creation. This research proposal has identified a gap in research concerning how the collapse of small business enterprises impacts on employment in Australia. The research contains an evaluation of research method to be used in this study as well as data analysis procedure and methods.
References
Crawley, g. M., & o’sullivan, e. (2016). The grant writer’s handbook: How to write a research proposal and succeed. Http://search.ebscohost.com/login.aspx?Direct=true&scope=site&db=nlebk&db=nlabk&an=1091546.
Curtis, v. (2012). Small business for dummies. Hoboken, john wiley & sons. Http://public.eblib.com/choice/publicfullrecord.aspx?P=896078.
Hardy shafii, a. S., & muhizam mustafa. (2012). Research proposal writing.
Hougaz, l. (2015). Entrepreneurs in family business dynasties: Stories of italian-australian family businesses over 100 years. Http://public.eblib.com/choice/publicfullrecord.aspx?P=1998077.
Information resources management association. (2016). Web-based services: Concepts, methodologies, tools, and applications. Http://search.ebscohost.com/login.aspx?Direct=true&scope=site&db=nlebk&db=nlabk&an=1093982.
Leow, j., murphy, s., & hooper, g. (2010). Australian master superannuation guide 2010/11. North ryde, n.s.w., cch australia.
Meyer, C. (2017). Book review: Small business in a global economy: Creating and managing successful organizationsNewbertScott (ed.), Small business in a global economy: Creating and managing successful organizations, Santa Barbara, CA: ABC-CLIO, LLC, 2015; 697 pp., ISBN: 9781440830150, $131 (hbk). International Small Business Journal, 35(1), pp.138-139.
Msweli-mbanga, p. (2011). Writing a research proposal: Practical guidelines for business students. Cape town, south africa, juta.
Sheedy, m. (2011). The small business success guide. Hoboken, john wiley & sons. Http://www.123library.org/book_details/?Id=31877.
Smith, k. G. (2016). Writing and researcPunch, k. F. (2016). Developing effective research proposals. London, sage publications. Http://public.eblib.com/choice/publicfullrecord.aspx?P=4769997.
[s.l.], langham global library.
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