Small Business Skills Plan

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Small Business Skills Plan
December 2013
1
SKILLS TASMANIA
SMALL BUSINESS SKILLS PLAN
Introduction
Small business is critical to the Tasmanian economy and its importance is
recognised in the Economic Development Plan1 and the related Small Business and
Skills strategies. The Economic Development Plan has a key goal of supporting and
growing business in Tasmania which includes making sure that businesses have
the skills and information to be entrepreneurial and take advantage of market
opportunities.
The Small Business Skills Plan is designed to provide information about how the
training system supports the needs of small business. This Plan will support small
businesses to integrate business planning and skill development to assist them to
operate successfully and grow their businesses.
Skills Tasmania and the Department of Economic Development, Tourism and the
Arts have worked together to develop the Small Business Skills Plan to ensure
that information regarding skills development is easily accessible and that support
provided to small business by each agency is complementary. Industry and small
business have contributed to the formulation of this plan.
Small business in Tasmania
There are 36,000 small businesses2 in Tasmania which constitute 95% of all
businesses and collectively employ approximately 106,000 people (46% of the
workforce). Around 42% of registered small businesses employ staff whilst the
remainder are non-employing micro businesses3 with the owners operating the
business. Agriculture, forestry, fishing, construction and services account for
almost 60% of small businesses in the state.
Small businesses play a key role in maintaining self-reliant and cohesive
communities, especially in regional areas, and also play a vital part in skills
development.
What support does the small business sector need?
The small business sector is diverse and the support and workforce
development needs of small businesses vary according to a range of factors.
1
Department of Economic Development, Tourism and the Arts, 2011, Economic Development Plan
A small business employs less than 20 people, is independently owned and operated, and close
control over operations and decisions is held by the owners
3 Department of Economic Development, Tourism and the Arts, 2011, Small Business Strategy
2
2
These include the industry sector, location, whether the business is a micro or
small business, the stage of business development, complexity and strategic
direction of business.
In the development of the Small Business Strategy4 the Tasmanian Government
conducted research into the key barriers to business growth.
The major challenges identified include:






costs of doing business
compliance with government regulations
a fair and competitive business environment
management and business skills of small business operators
access to skilled, quality staff
access to finance and capital.
The Small Business Skills Plan focuses on management and business skills and
strategies needed to ensure skilled quality staff.
The Tasmanian Government’s research and consultation with small business
identified a genuine concern by small business operators that they do not
possess the necessary business management skills to help their business grow.
Many are highly skilled in the trade or profession that is their core business
product or service but feel they do not have the management skills important in
operating a business.
Broader research indicates that the potential for business growth in small
businesses tends to outstrip management capacity. Insufficient managerial
capacity has the effect of limiting and contracting growth and is a major factor in
business failure.
Research undertaken by Innovation and Business Skills Australia (IBSA)5 has
found that small and micro businesses are significantly different and that products
and information need to be targeted to each sector at key times in the life cycle
of a business. Most commonly small business issues relate to sales, customer
service, health and safety, communication skills, marketing and promotion. Micro
business has identified networking, sales, computer/IT skills, self-management
skills, financial management and business planning as the major issues.
4
5
Department of Economic Development, Tourism and the Arts, 2011, Small Business Strategy
Innovation and Business Skills Australia, 2007, Fresh thinking about Management Skills for Small and
Micro Businesses.
3
The IBSA Environmental scan 20126 has identified as a major challenge the need
for small business to understand how to plan and invest in workforce
development.
Why is Workforce planning and development important?
Skills Tasmania works with industry to develop Workforce Plans that articulate
workforce development needs for an industry. These are used to identify
priority areas for the funding of training. The targeting of training to meet the
State’s skills needs is critical to ensure the economic development of the State
and to support growth of the small business sector.
Whilst the term workforce planning is used in the wider business sector to
encompass all facets of staffing such as recruitment, succession planning,
retention strategies and training, small businesses may be more familiar with the
terminology of human resource management and skills needs.
Workforce planning for individual small businesses supports business growth and
productivity as it identifies what knowledge, skills and experience are required
and the size and type of workforce needed, based on an organisation’s business
goals. Workforce development outlines the activities necessary, such as training
or recruitment strategies, to ensure the business meets the skills needs it has
identified. The government is committed to skilling small business for growth
(Small Business Strategy) by contributing to funding identified training
requirements.
Skills Tasmania’s Small Business Engagement Policy7 described workforce planning
at the small and micro business level as:

succession planning and personal skill development for micro businesses and
sole traders;

incorporation of workforce considerations in strategic business planning
for expansion and growth; and

consideration of skills development of managers and staff, outsourcing of
functions, recruitment to meet identified needs and retention strategies
to keep key skills in the businesses.
If this process is undertaken effectively small businesses will have the potential to
acquire skills to enable them to grow and operate efficiently and the State’s
funding for training this sector will be utilised for maximum benefit.
6
7
Innovation and Business Skills Australia, 2012, Environmental Scan – 2012
Skills Tasmania, 2012, Small Business Engagement Policy
4
THE LIFE CYCLE OF SMALL BUSINESS – CURRENT SERVICES
AND SUPPORT
Small business skills needs may vary according to industry and size with
microbusiness having markedly different needs to businesses with several
employees. The complexity of information and the amount of assistance
required will also vary according to the life cycle stage of the business. For
example the complexity of business health checks, business planning and
identification of skills development requirements would be higher for businesses
in a growth phase compared with those in an establishment or stable phase.
Table 1(Page 7) shows the main requirements of businesses at different stages of
their life cycle.
Concept stage
A major need for this group is basic information provision. Comprehensive
information is currently available through:
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Websites such as Business Tasmania (previously Business Point) (DEDTA),
business.gov.au (Australian Government) and the Australian Small Business
Commissioner
Enterprise Centres Tasmania (ECT) – learning activities about running a
business
Industry associations8
Commercial business coaches and advisors
Training providers – training available
New Enterprise Incentive Scheme (NEIS) - Australian Government9.
Establishment stage
Once an individual has made a decision to establish a small business, specific
assistance with business planning is currently provided by Enterprise Centres
Tasmania and industry associations. Eligible jobseekers may also be able to access
training and mentoring assistance through the New Enterprise Incentive Scheme.
Enterprise Centres Tasmania and industry associations provide learning activities
related to basic business skills. Accredited small business training is available
through TasTAFE or a range of private registered training organisations.
The Australian Government Small Business Advisory Service funds organisations to
assist small business with business management skills, financial and business
planning. Two State funded Enterprise Centres Tasmania are also funded as
Small Business Advisory Services.
8
9
Industry Associations includes Trade Associations.
Participant must be registered with a Job Services Australia or Disability Employment Services provider.
5
The Australian Small Business Commissioner’s website provides information for
small business and links to business.gov.au.
Small business growth/expansion stage
At this stage most business owners need coaching, mentoring and expert help to
enable them to improve and expand their business. Skills development and
staffing requirements need to be integrated with their business plans and training
of the owner and staff may be required. In addition peer support and networking
continues to be important.
Simple diagnostic tools to assess the health of a business, and assistance with
using them, are available on line. Basic staffing and skills planning and resources
are available through Australian Government Skills Connect, some State
government and some Industry Skills Council’s websites.
In Tasmania assistance is available through Enterprise Centres Tasmania).
The Australian Government provides assistance to small businesses planning to
expand their business through:

Commercialisation Australia which is a competitive, merit-based assistance
program offering funding and resources to assist
Australian
entrepreneurs, researchers and inventors looking to commercialise
innovative intellectual property. It provides case management, access to
experts and funding.

Enterprise Connect which offers small businesses in manufacturing or
manufacturing-related services, resources technology, defence, clean
technology, creative industries and tourism or in remote Australia, that
have been operating for at least three years, the opportunity to undertake
a comprehensive business review and benchmarking assessment by
experienced consultants. The business can then apply for grants to
implement recommendations
6
The small business lifecycle
Table 1
Service/support
Potential
small business
concept stage
Small business
establishment
stage
Micro
business (no
staff) early
stage
Information
provision
Introductory
workshop –
Business
readiness
Initial business
planning/prebusiness
assessment
Workshops/traini
ng in basic
business skills
Peer support
Online forums
Ongoing business
planning
Mentoring/coachi
ng
Business health
analysis
Skills
development
planning
Training (owner)
Training (staff)
7
Small and
micro
business with
staff growth
stage
Small and
micro
business
stable stage
Transition/
Exit stage
SKILLS DEVELOPMENT
At all stages of business development small business owners are able to undertake
accredited publicly subsidised training either individually through TasTAFE or through
registered training organisations funded through competitive programs such as the
Skills Fund. The latter funding is for existing workers and currently requires an
application through industry associations or regional groups. Small business’ trainees
and apprentices have their training subsidised by Skills Tasmania.
NEIS participants undertake accredited training in either Certificate III in Micro
Business Operations and Certificate IV in Small Business Management as part of their
program.
Small businesses have a strong record of attendance at workshops such as those
provided by Enterprise Centres Tasmania. This training is typically non-accredited.
The Tasmanian Building and Construction Industry Training Board is able to support
small business in the construction industry to improve technical skills, safety
knowledge and management skills through funding from the industry levy. A range of
independently funded training is also provided through industry associations such as
the Tasmanian Chamber of Commerce and Industry (TCCI).
Accredited training
Although small businesses have access to accredited training, research has shown that
this sector typically values coaching, mentoring and short relevant courses, but does
not value accredited training to a high degree, other than in the traditional trades and
where it is required for licencing. At the same time Industry Skills Plans have
recognised the need to foster a training culture in industry and assist small business to
understand the benefits of accredited training.
Accredited training has benefits for small business by:
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Assisting small business to learn new ways of planning and conducting their
business to industry standards which will assist them to be competitive;
Improving skills and knowledge of staff which should result in higher levels of
efficiency and effectiveness; and
Providing staff with the opportunity to obtain nationally recognised
qualifications demonstrates to staff that they are valued.
Small businesses owners and staff often attend non accredited training at workshops.
In situations where knowledge and tools provided in workshops are subsequently
applied in the business, this would meet requirements for assessment for a unit/s of
competency in a nationally recognised qualification.
8
Small business owners and staff are able to access subsidies to undertake relevant
accredited training through TasTAFE and contracted Registered Training
Organisations (RTOs), to develop skills to grow and improve their business.
The need for training to be delivered and assessed in a way that suits small business is
a key factor in encouraging small business to undertake training. Strategies in the Elearning Capability Engagement Program to increase the use of e-learning will increase
training options available to small businesses. A preferred RTO process for small
business training delivery and assessment is incorporated in the Small Business Skills
Plan, as is professional development for RTOs.
Language literacy and numeracy (LLN)
The low literacy skills of Tasmanians aged 15-74 years is well documented with the
2006 Adult Literacy and Life Skills Survey10 by the Australian Bureau of Statistics finding
that half of this population age group lack the literacy skills to cope with the demands
of everyday life and work. The Tasmanian Adult Literacy Action Plan addresses this with
the Employer Pledge Program (EPP) being most relevant to small business. The
unpublished Stennings report’s11 findings included that employers may not recognise
that low language and literacy skills may be a problem in their workplace and that they
require assistance in identifying their workforce’s literacy capability, how it impacts on
business objectives and how it can be addressed.
Relevant accepted
recommendations of the report include that the program will fund LLN activities on a
stand-alone basis or in combination with other training contextualised to the
workplace; that a register of interest be established to facilitate the connection of
micro and small business employers with similar LLN training needs; that EPP
applicants be required to undertake a needs analysis prior to delivering any literacy
training; and show how training will be contextualised to the workplace.
The National Workforce Literacy Project12 identified that low levels of literacy and
numeracy result in reduced productivity. Employers identified that literacy issues are
not confined to the low skilled segments of the workforce; all workers at all levels
need the appropriate literacy skills for their job. The report identified the importance
of individualised training approaches taking into account business operational
requirements and RTOs having literacy specialists to work on site with industry.
Training package for small business management
The Business Service Training Package which is the relevant training package for small
business management skills has two main qualifications targeted at small business.
These are Certificate III in Micro Business Operations and Certificate IV in Small
Business Management.
Australian Bureau of Statistics 2006, Adult Literacy and Life Skills Survey
Stennings and Associates, 2012, Increasing Employer Take-up of Skills Tasmania’s Employer Pledge Program (unpublished)
12 Australian Industry Group, 2012, When Words Fail, National Workforce Literacy Project
10
11
9
The training package has a suite of eight skill sets to meet the needs of small business.
These are:
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Small Business Contracting
Small Business Financial Management
Small Business Home-Based Business
Small Business Indigenous Corporate governance
Small Business Intellectual Property
Small Business Marketing
Small Business Operations Preparatory
Small Business Preparatory
Small business’ training needs are not just related to management skills; small business
may need new technical skills related to expansion or changes in technology.
Best Practice Approaches for Small Business Training
Research into successful strategies to address the needs of small business owners
(Dawe and Nguyen 2007)13 showed that the most successful programs:
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had a clear focus on meeting the specific needs of the small business;
were based on a personal approach using locally based facilitators or service
providers; and
offered flexibility in delivery tailored to the individual needs of small business.
Dawe and Nguyen further identified ten factors that contribute to successful training
outcomes that provide an appropriate framework for design of small business training
strategies when targeted to the needs of the small business operator. These are:
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Peer group mentoring
Performance based learning
Business cycle relevant content
Individual needs assessment
Professional mentoring support
Flexibility of delivery
Workplace embedded learning
Affordably priced
Delivered by small business relevant instructors
Developed via a stakeholder network
Dawe S and Nguyen, N (2007), Education and Training that meets the needs of small business;
A systematic review of Research. National Centre for Vocational Education Research.
13
10
The design and delivery of programs for small business needs to take into account the
above research in order for it to be embraced by, and result in, productive skills for
small business.
Mentoring
Mentoring and coaching services are highly valued by small business. These services
are available through Mentoring Services Tasmania (MST) and some industry
associations.[1]
Mentoring Services Tasmania (MST) provides business mentoring to small business through
a network of experienced mentors.
Diagnostic tools – business health and skills development
Small businesses need training that meets the specific needs of their business.
Diagnostic tools exist that can be used to assess “business health” as a basis for
business planning, including skills development. Some examples are:
Skillsmaximiser is an online tool that has been developed by SkillsDMC for the
resources and infrastructure industries that provides skills needs analysis needs
directly mapped to the industry training package. This type of model could be
investigated for use in other industry sectors.
The Growing Business Program – TCCI
The Growing Business Program used a comprehensive business health diagnostic tool
to support business planning. A critical feature of the success of this program was
mentoring and coaching by a business advisor over a twelve month period. The skills
development aspect of this project, and the potential to link to accredited training, has
not yet been used to its full potential.
Workforce Futures Program for the Tourism and Hospitality Industry (funded by the
Australian Government) has a component of skilled advisors working with individual
small to medium business to evaluate their workforce development needs. The
tourism and hospitality industry project will link the outcomes of the workforce
development process with targeted skills development.
The Small Business Solutions Program has been widely used in Queensland and through
the former Business Growth Centre in Western Australia. The core of the program is a
Business Health Check which is a questionnaire designed to assess the small business
owner’s performance against a set of 6 units of competency from the Small Business
Operations Preparatory Skill Set. The questionnaire is administered by an
advisor/mentor who must have a small business background and be qualified as an
assessor.
[1]
Includes Trade Associations
11
1. BSBWOR204A
2. BSBWOR301A
3. BSBPRO301A
4. BSBINM301A
5. BSBREL402A
6. BSBCUS301A
Use of Business Technology
Organise Personal Work Priorities &Development
Recommend Product &Services
Organise Workplace Information
Build Client Relationships & Business Networks
Deliver and Monitor a Service to Customers
A weakness of this program is the lack of competencies regarding financial planning,
business planning, workforce development and marketing which are key requirements
of small business owners and indicators of “business health”. The strength of the
program is the advisor/mentor role.
SMALL BUSINESS SKILLS PLAN
The Small Business Skills Plan is based on the life cycle phase of a small business,
addresses the current gaps in support for small business, and clarifies the roles of
DEDTA, Skills Tasmania and industry participants.
The Small Business Skills Plan aims to support small businesses to integrate information
and assistance provided by different agencies and organisations, include skills
development requirements as part of their business plans, and undertake accredited
training.
In the concept and early establishment stages small businesses have access to a wide
range of information and support. As businesses enter into growth and expansion
stages the availability of relevant information, formal coaching and assistance with
business and skills development planning and appropriate training, is more limited and
harder to access. The Small Business Skills Plan addresses the needs of this sector,
which has the potential and desire to expand, and is therefore, critical to the
economy.
The Plan recognises that skills development strategies that work best for small
business are based on business needs and best practice models of training delivery.
The plan addresses the assessment of staff development needs (including literacy and
numeracy), professional development of facilitators/trainers to link business plans to
training and deliver training to meet the needs of small business. The funding of
training is included in the plan.
A key strategy is a project to implement an appropriate diagnostic tool to assist small
businesses, in growth stages in particular, to identify business and skills development
needs which would form the basis for accredited training.
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13
Skills Tasmania will contribute to the skilling of small business through:
1. Information provision
Skills Tasmania will:

Contribute to the Business Tasmania on-line government information system to
provide accurate, timely and relevant information about the training system, about
workforce development and funded training options for small business.

Work closely with industry associations to promote the importance of business
planning including staff development needs.

Publicise case studies from small business related to the benefits of improving
workforce literacy and numeracy skills.
2. Capacity building
Skills Tasmania will:

Work closely with industry and DEDTA to build the capacity of Enterprise
Centres Tasmania), industry associations, and relevant consultants to engage
with small business to assess workforce development needs, develop skills for
mentoring and coaching and promote accredited training.

Facilitate professional development for TasTAFE and selected RTOs to build
capacity in meeting training needs of small business based on a formal
diagnostic assessment, staff development plan and best practice training
models.

Support professional development for TasTAFE and private RTOS to build the
capacity of Vocational Education and Training Practitioners in e-learning,
training and assessment

Subsidise training for small business volunteer mentors to further develop their
mentoring skills.

Work with industry associations and RTOs to improve collaboration between
them to improve the relevance and accessibility of training options for small
business.

Encourage communities of practice to support knowledge sharing amongst
workforce planning and workforce development practitioners, Enterprise
Centre Tasmania staff, volunteer business mentors/coaches, registered training
14
organisations and industry associations.

3.
Establish mechanisms to quality assure the selection of RTOs and the delivery
of training to small business.
Linking business and industry planning to training
Skills Tasmania will:

Require Industry Workforce Plans to identify the needs of small business and
include strategies to address these.

Encourage DEDTA to align existing and proposed non accredited training
programs to Certificate III in Micro Business Operations, Certificate IV in Small
Business Management and related skill sets to encourage business owners to
complete nationally recognised qualifications.

Undertake a partnership project with DEDTA and/or industry associations to
identify or develop an appropriate diagnostic tool to assist small businesses in
growth phase to determine skills development needs (including LLN) as part of
a business assessment.
This assessment will form the basis for the
subsidisation of training for a small business.

Work with industry to investigate the availability of on-line training for small
business qualifications and skill sets and promote e-learning to small business.

Establish a register of interest to facilitate the connection of small business
employers with similar LLN training needs.
4. Training – preferred providers and funding
Skills Tasmania will:
 Develop a pilot project for small businesses in the growth phase. The project
will utilise an appropriate diagnostic tool to assess business and skills
development needs, provide mentoring and coaching, and fund identified
training delivered by preferred providers. The pilot project will have the
following elements:
- RTOs seeking to be preferred providers for small business qualifications
or skill sets will be required to address selection criteria related to
their strategies to engage with the small business sector, address
workforce literacy and numeracy, deliver training and assessment based
15
on best practice delivery models and have the capability of e-learning
training and assessment
- Industry associations and Enterprise Centres Tasmania will facilitate
small business owners’ involvement in the project and have a role in
evaluation.
- Accredited training will be subsidised for small business owners and
staff for skill sets or qualifications that are required to improve business
productivity as identified through use of the diagnostic tool.
- Evaluation of the outcomes for small business.

Continue to improve small business group’s access to the Skills Fund through
industry associations.

Work with the Tasmanian Building and Construction Industry Training Board
to align funding and support for small business in this sector.

Subsidise training through the Skills Fund to develop the skills of volunteer
mentors for the small business sector.
.
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Small Business Skills Plan - Tasmania
Small business
lifecycle phase
Potential small or
micro business
concept stage
Service/support
Responsible agency
Status

Information on business
planning including skills
development.
DEDTA and Skills Tas to
develop.
-Included on Business online
Under
development

Introductory workshops –
business readiness.
DEDTA and preferred RTOs
funded by Skills Tasmania
Small and micro

business
establishment/early
phase
Pre-business assessment
Diagnostic tool - utilised to
form basis of business plan
including skills development.
-
One to one discussion re
business concept and
plan.
-
Referral to endorsed
RTO for identified skills
development.
DEDTA –Enterprise Centres
Tasmania (ECT)Tasmania
NEIS
17
Under
development
Stakeholder
involvement
Consultation with, and
dissemination of,
applicable information by:
DEDTA – Business online
Industry Associations
Small Business Council
TCCI – State and regional
Regional bodies
Accountants
Banks
Small business
lifecycle phase
Potential small or
micro business
concept stage
Service/support

Pre-start up training for
small and micro business
 Workshops/learning
activities
Basic small and micro business
skills. (Accredited training option
adds value)
Small and micro
business
establishment/early
phase

Mentoring/coaching
Responsible agency
Status
DEDTA–ECT
 NEIS
Existing

Preferred RTOs funded
by Skills Tasmania



DEDTA - ECT
NEIS
Volunteer mentors.
Planned new
initiative
To be
enhanced
New initiativetraining for
volunteer small
business
mentors.

Peer support

Small business owner
responsibility to
access networks.
Existing

Training (accredited)

Skills Tasmania
Existing –
TasTAFE or
Skills Fund.
18
Stakeholder
involvement
DEDTA and
Skills Tas to map existing
courses/new courses to
small business skill sets
from training package to
allow for assessment
against nationally
recognised qualifications.
Skills Tasmania funding
for training of small
business volunteer
mentors through the
Skills Fund
Industry associations,
regional business
networks, TCCI etc
Small business
lifecycle phase
Small business
and micro
business with
staff growth
stage
Service/support

Business health assessment
-

Responsible agency
Status
 DEDTA and Skills Tas
New initiative
Higher level diagnostic tool
utilised to form basis of
business plan including skills
development plan
Mentoring /coaching
- Identify or develop a
more complex
diagnostic tool that
assesses business health
and skills development
needs

-
and

Accredited Training for
business owner and staff

Small business
stable and
transition/exit
stage

Peer support

DEDTA /ECT
Mentoring/coaching
based on outcome of
diagnostic assessment
New initiative
Skills Tas
- contract RTOs
(preferred provider
model) to deliver
training/undertake
assessment
New selection
criteria for
preferred
RTOs for small
business
training.
- Fund training identified
as a skills need
(including LLN)
Existing –
TasTAFE or
Skills Fund.
Small business owner
responsibility to access
networks.
19
Existing
Stakeholder
involvement
Industry associations,
regional business
networks, TCCI etc
Industry associations,
regional business
networks, TCCI etc
Service/support
Professional
development for
RTOs

Professional development
for RTOs as to
requirements of small
business in relation to
training delivery.
Responsible agency
Skills Tas to facilitate
professional development for
RTOs to meet small business
needs for training.
20
Status
Stakeholder
involvement
Industry, small business and
employer associations input.
Appendix 1
Major sources of information and assistance for small business
Organisation
Information
provision
DEDTA
Web addresses
Assistance available
Business Tasmania website
www.development.tas.gov.au
Australian
Government
Business.gov.au
Australian
Government
Skills Connect
Innovation and
Business Skills
Australia
Skillsconnect.gov.au
Business planning; legal
requirements, finance,
employment related
requirements.
Workshops.
Business planning; legal
requirements, finance,
employment related
requirements.
Workforce Development
http://www.ibsa.org.au
IBSA
• Undertakes research
• Provides industry intelligence
• Develop products (training
packages), services and
resources
• Facilitates workshops to
enhance professional
practice
 Workforce development
survey/tool.
Australian
Government
NEIS http://deewr.gov.au/newenterprise-incentive-schemeneis
Business training, mentoring and
financial assistance for job
seekers.
Funding for
training
Skills Tasmania
Skills Fund
Small Businesses can
access Skills Fund training
through Industry
associations and small
business organisations
that apply for
qualifications and skill set
training in conjunction
with an RTO. The
training requires a 10%
contribution.
Australian
Government
National Workforce
Development Fund
Business partners with
Government to up skill
workers in skill shortage
areas
REFERENCES:
21
Australian Government, 2012, Skills for all Australians, Building the Skilled Workforce for
Australia’s Small Business now and for the Future.
Dawe S and Nguyen, N (2007), Education and Training that meets the needs of small
business; A systematic review of Research. National Centre for Vocational Education
Research.
Department of Economic Development, Tourism and the Arts, 2011, Economic
Development Plan.
Department of Economic Development, Tourism and the Arts, 2011, Small Business
Strategy.
Department of Economic Development Tourism and the Arts, Business Point.
Innovation and Business Skills Australia, 2007, Fresh thinking about Management Skills for
Small and Micro Businesses.
Innovation and Business Skills Australia, 2012, Environmental Scan – 2012
Service Skills Australia, 2012, Workforce Futures.
SkillsDMC, Skills Maximiser.
Skills Tasmania, 2012, Small Business Engagement Policy.
Skills Tasmania, The Tasmanian Skills Strategy 2008-2015.
TCCI, Growing Business
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Glossary
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Accredited course
A course developed to meet training needs that are not addressed by existing training
packages. Training.gov.au (TGA) provides details of nationally accredited courses and the
training providers that deliver these courses.
Adult literacy and numeracy
Adults ability to read, write and use numbers and numerical information.
Apprentice
A person contracted to an employer undergoing training for a recognised apprenticeable
occupation during an established period.
Assessment
The process of gathering and judging evidence in order to decide whether a person has
achieved a standard or objective.
Certificate
An official document, issued by an awarding body, which records the training achievements
of an individual following a standard assessment procedure.
Certificates I—IV
A set of qualifications that prepares candidates for both employment and further education
and training. They recognise achievement of specified national industry competency
standards at four Australian Qualifications Framework (AQF) levels in a wide variety of
trades, industries and enterprises. Certificates I and II are largely new qualifications
recognising basic vocational skills and knowledge and Certificates III and IV largely replace
the outdated category of trade certificates.
Communities of practice
Networks that emerge from a desire to work more effectively or to understand work more
deeply among members of a particular specialty or work group. They focus on learning,
competence and performance, bridging the gap between organisational learning and strategy
topics and generating new insights for theory and practice.
Competency
An individual's demonstrated capacity to perform a task or skill, that is, the possession of
knowledge, skills and personal attributes needed to satisfy the special demands or
requirements of a particular situation.
Competency standard
An industry-determined specification of performance, which sets out the skills, knowledge
and attitudes required to operate effectively in employment. In vocational education and
training, competency standards are made up of units of competency, which are themselves
made up of elements of competency, together with performance criteria, a range of
variables, and an evidence guide. Competency standards are an endorsed component of a
training package.
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Vocational Education and Training terms sourced from NCVER VET Glossary 2011.
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Department of Economic Development, Tourism and the Arts (DEDTA)
The Department of Economic Development, Tourism and the Arts core business is to
create and promote a leading vision for Tasmania by leading industry and community
development, delivering marketing and development programs for Tasmanian tourism and
providing policy and planning for Tasmanian arts and culture.
Industry organisation
An organisation representing an industry, including peak business and employer
organisations and industry advisory bodies such as the industry skills councils.
Industry skills council
A set of eleven national bodies that provide advice to Australian, state and territory
governments on the training required by industry. The 11 ISCs are: Agri-Food Skills
Australia; Community Services and Health; Construction and Property Services;
ElectroComms and Energy Utilities (EE-Oz Training Standards); ForestWorks; Government
Skills Australia; Innovation and Business Industry Skills Australia; Manufacturing Skills
Australia; SkillsDMS Industry Skills Council; Service Skills Australia; and Transport and
Logistics.
Integrated assessment
An approach to assessment that covers multiple elements and/or units of competence from
relevant competency standards. The integrated approach attempts to combine knowledge,
understanding, problem-solving, technical skills, attitudes and ethics into an assessment task
to reduce the time spent on testing and make assessment more 'authentic'.
Mentoring
Mentoring is a relationship between an experienced person and a less experienced person
for the purpose of helping the one with less experience.
Nationally recognised training
An accredited program of study that leads to vocational qualifications and credentials that
are recognised across Australia. Only registered training organisations that meet
government quality standards such as TAFE, private providers and vocational divisions of
universities can provide nationally recognised training. It includes accredited courses and
endorsed training package qualifications.
Qualification
Formal certification that is awarded by an accredited authority in recognition of the
successful completion of an educational program. In the vocational education and training
sector, qualifications are awarded when a person has satisfied all requirements of the units
of competency or modules that comprise an Australian Qualifications Framework (AQF)
qualification, as specified by a nationally endorsed training package or an accredited course
that provides training for that qualification.
Recognition of prior learning (RPL)
The acknowledgment of a person's skills and knowledge acquired through previous training,
work or life experience, which may be used to grant status or credit in a subject or module.
It can lead to a full qualification in the VET sector.
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Registered training organisation (RTO)
An organisation registered by a state or territory registering and accrediting body to deliver
training and/or conduct assessments and issue nationally recognised qualifications in
accordance with the Australian Quality Training Framework (AQTF). RTOs include TAFE
colleges and institutes, adult and community education providers, private providers,
community organisations, schools, higher education institutions, commercial and enterprise
training providers, industry bodies and other organisations meeting the registration
requirements.
Skill
An ability to perform a particular mental or physical activity that may be developed through
vocational training or practice.
Skill development
The development of work-related skills or competencies through vocational education and
training.
Skill sets
Single units or combinations of units which link to a license or regulatory requirement, or a
defined industry need. In 2007, the National Quality Council (NQC) determined that skill
sets would complement full qualifications within the Australian Qualifications Framework
(AQF) and be included in training packages. Prior to this, students who did not complete a
full qualification could only receive a statement of attainment for each unit completed,
without any indication of whether the units selected met a defined industry need or
licensing/regulatory requirement. Nationally endorsed skill sets provide formal recognition
of training for a discrete part of a qualification linked to a function or role within an
occupation.
Skills Tasmania
Skills Tasmania is Tasmania’s State Training Authority, developing strategies and providing
support, advice, opportunities and funding to deliver quality training to meet the needs of
Tasmanians and our industries.
Small Business
A small business employs less than 20 people, is independently owned and operated, and
close control over operations and decisions is held by the owners.
Trainee
A person receiving training or undertaking a traineeship.
Training culture
An environment in which training is seen as important and is closely linked to business
strategy, particularly in creating competitive advantage for an enterprise. Opportunities are
given to all employees to participate in training to develop their skills and competencies.
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Training package
An integrated set of nationally endorsed standards, guidelines and qualifications for training,
assessing and recognising people's skills developed by industry to meet the training needs of
an industry or a group of industries. Training packages consist of core endorsed
components of competency standards, assessment guidelines and qualifications, and optional
non-endorsed components of support materials such as learning strategies, assessment
resources and professional development materials.
Vocational education and training (VET)
Post-compulsory education and training, excluding degree and higher-level programs
delivered by further education institutions, that provides people with occupational or workrelated knowledge and skills. VET also includes programs which provide the basis for
subsequent vocational programs. Alternative terms used internationally include ‘technical
and vocational education and training’ (TVET), ‘vocational and technical education and
training’ (VTET), ‘technical and vocational education’ (TVE), ‘vocational and technical
education’ (VTE), ‘further education and training’ (FET), and career and technical education
(CTE).
Workforce Planning
Systematic identification and analysis of what an organisation is going to need in terms of the
size, type, and quality of workforce to achieve its objectives. It determines what mix of
experience, knowledge, and skills is required and sequences steps to get the right number of
right people in the right place at the right time.
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