SMALL BUSINESS REVIEW 2014-15

SMALL BUSINESS REVIEW 2014-15 Discussion Paper Version 2.0 October 2014 IBSA SMALL BUSINESS REVIEW DISCUSSION PAPER V.2 1

Modification history Date Version Responsible Action 16 September 1.0 Shirley Brown Initial draft 14 October 2.0 Shirley Brown Revised draft TABLE OF CONTENTS 1 PROJECT SCOPE 3 2 PROJECT PLAN OUTLINE 4 3 SNAPSHOT OF SMALL BUSINESS IN AUSTRALIA 5 4 EXISTING UNITS AND QUALIFICATIONS 8 5 ISSUES FOR CONSIDERATION 13 IBSA SMALL BUSINESS REVIEW DISCUSSION PAPER V.2 2

PROJECT SCOPE WHAT IS THE PURPOSE OF THE PROJECT? Small businesses make a significant contribution to the Australian economy, and it is critically important that their current skill needs are reflected in the make-up of national training products. (For the purpose of the project, we are using the Australian Bureau of Statistics (ABS) definitions. The ABS defines a small business as an actively trading business with 0 19 employees. Micro businesses are small businesses with 0 4 employees. ) Service Skills SA has been engaged by Innovation and Business Skills Australia (IBSA) to review the current Small Business components of the BSB Training Package. This includes two qualifications (Certificate III in Micro Business and Certificate IV in Small Business Management), eight Skill Sets and twenty-one associated units of competency. The project commenced in August 2014 and will run through to March 2015. The aim is to determine their relevance for non-neis (New Enterprise Incentive Scheme) applications and the requirements for revised or new units, skill sets or qualifications to suit industry needs. This will involve research, interviews and consultations with a broad range of industry representatives, either face-to-face or using electronic communication strategies. The project also aims to ensure small business qualifications and skill sets are attractive to training providers and applicable to users across all industries. WHO IS IBSA? Innovation and Business Skills Australia (IBSA) works in partnership with industry and key stakeholders in the VET sector to develop the business and innovation skills that are critical to the success of Australian industries, enterprises and their workforce. IBSA is one of eleven Industry Skills Councils recognised and funded by the Australian Government to provide advice regarding the training needs of Australians and Australian industry. IBSA covers the industry sectors of Business Services; Cultural and Creative industries; Education; Financial Services; Information and Communication Technologies; and Printing and Graphic Arts. AIM OF THE DISCUSSION PAPER This paper presents background information to the current project, a summary of the methodology and timelines. An outline of the existing units and qualifications is provided along with a brief snapshot of Australian micro and small businesses. The paper is not meant to be a comprehensive review of small business training within Australia, as the project s scope is confined to nationally accredited training, but provide some context and highlight potential issues for consideration (it is expected more may be identified in the consultation process). The two existing qualifications have been well utilised, with consistent enrolment numbers over the past few years. The small business units are not only used in IBSA s Business qualifications, but appear in many other Industry training package qualifications and skill sets (some units appear in over 100 qualifications). This project will focus on enhancing the existing units, skill sets and qualifications as well as identifying how to add value to the current options, especially for existing businesses. In order to develop a quality product that meets a diverse range of industry needs, we need your feedback. At the back of this paper there are a series of questions to prompt your thinking. IBSA SMALL BUSINESS REVIEW DISCUSSION PAPER V.2 3

PROJECT PLAN OUTLINE An industry representative NPRG (National Project Reference Group) has been established to provide expert opinion and guidance to IBSA and the project consultants. Members include: NAME TITLE ORGANISATION Marina Borrello Senior Project Officer Training Quality, Skills SA Robert Gerrish Director Flying Solo Microbusiness Community Sevda Afsar Policy and Research Officer Business SA (ACCI) Lyn Hay General Manager Adelaide Business Hub Georgie Davill Senior Program Manager Carclew/Fifth Quarter Jackie Zelinsky former CEO Business Enterprise Centres Darren Arbon Training Consultant Franklyn Scholar Robert Mallett Chair Council of Small Business of Australia (COSBOA) Day to day project management is undertaken by the IBSA Office, while the role of the consultant is to work with the industry and NPRG in identifying key issues and potential revisions or additions, draft revised units, skillsets and qualifications, and to provide advice to IBSA. The project has a number of milestones associated with key deliverables, as shown below. These are indicative timelines and may be modified as the project progresses. MILESTONE DATE 1st NPRG Meeting 25 August 2014 Consultation strategy devised 19 Sept 2014 Project Discussion Paper available 15 October 2014 National Stakeholder Consultation & Scoping Oct early Nov 2014 Consultation Summary available 5 Nov 2014 2nd NPRG Meeting 11 Nov 2014 (TBC) Prepare draft 1 revised standards & qualifications 30 Nov 2014 Draft materials for comment available 1 Dec 2014 15 Jan 2015 Summary of changes report 6 Feb 2015 Prepare draft 2 revised standards & qualifications 9 Feb 2015 Draft materials for comment available 10 Feb 20 Feb 2014 3rd NPRG Meeting 23 Feb 2015 (TBC) Final drafts for NPRG Validation 2 Mar 2015 Prepare Case for endorsement 27 April 2015 IBSA SMALL BUSINESS REVIEW DISCUSSION PAPER V.2 4

SNAPSHOT OF SMALL BUSINESS IN AUSTRALIA The following information is taken from the ABS publication, Australian Small Business Key Statistics and Analysis December 2012. Definitions There are many different ways a small business can be defined. The two most common ways of defining Australian small business are by annual turnover or the number of employees (or a combination of the two). For statistical purposes, the Australian Bureau of Statistics (ABS) defines a small business as an actively trading business with 0 19 employees. Micro businesses are small businesses with 0 4 employees. Actively trading businesses are businesses that have an ABN and are actively remitting in respect of a GST role. The employment size ranges are based on headcount, rather than a measure of full-time equivalent persons. A distinction can also be made between employing and non-employing businesses, where employing businesses have an active Income Tax Withholding (ITW) role. The Australian Taxation Office (ATO) estimates that there were around 3 million micro entities in Australia at the start of the 2012 13 financial year, up from around 2.8 million micro entities at the start of the 2011 12 financial year. Micro entities are defined as having a turnover of equal to or more than $1 and less than $2 million in a financial year. Key statistics There were 2,132,412 actively trading businesses in Australia as at June 2011, an increase from 2,124,650 actively trading businesses as at June 2010. Non-employing businesses numbered the most, accounting for 61.2 per cent of total businesses, followed by employing micro businesses, which accounted for 23.9 per cent and the remaining small businesses, which accounted for 10.8 per cent. Small businesses make a significant contribution to the Australian economy, accounting for slightly less than one-half of private sector industry employment (4.8 million persons out of a total of 10.5 million persons) and contributing approximately one third of private sector industry value added in 2010 11. The construction and the professional, scientific and technical services industry subsectors each contributed around 16 per cent of the small business contribution to services industry value added, and the rental, hiring and real estate services subsector contributed over 15 per cent. As could be expected, in the more populous states the proportion of small businesses aligns very closely to the proportion each state has of the total Australian population, the smaller states and territories are underrepresented by small businesses relative to population size. A little over 30 per cent of micro businesses (employing 0 4 persons) undertook innovative activity in 2010 11, while almost half of other small businesses (employing 5 19 persons) undertook innovative activity in the same period. This figure is well below the 62 per cent for medium businesses and the 66 per cent for larger businesses. Micro businesses introduced less innovative activity compared with other sized businesses only 24.9 per cent having introduced an innovation, compared with 43.6 per cent of other small businesses, 56.0 per cent of medium businesses and 53.7 per cent of large businesses. Data analysis from the ABS Business Characteristics Survey shows that small businesses with collaboration agreements are more likely to increase the range of products or services offered than small businesses without collaboration agreements. A similar story can be seen in the data for profitability, with a greater proportion of businesses with collaborative agreements in place reporting increases in profitability compared to businesses without agreements. E-commerce adoption by small businesses remains at a relatively early stage (electronic commerce, commonly known as e-commerce, is the buying and selling of products or services over electronic systems such as the internet). The Sensis e-business report (2012) indicates 38 per cent of those SMEs connected to the internet reported that they used the internet for advertising and only 15 per cent reported having an actual digital business strategy. IBSA SMALL BUSINESS REVIEW DISCUSSION PAPER V.2 5

The proportion of SMEs with a website was 62 per cent, and a further seven per cent of SMEs indicated an intention to have one within the next 12 months. Seventy-two per cent of SMEs with websites reported that having a website had improved the effectiveness of their business. Sensis (2012) also reported that 26 per cent of small businesses (compared with 41 per cent of medium businesses) have a social media presence. Overall, 49 per cent of SMEs that used social media reported that its impact on their business was positive. Research by Deloitte showed that about a third of SMEs had a very low level of digital engagement, typically only using email. Small businesses with high digital engagement have better growth prospects, more diversified sources of revenue and a bigger customer base. Micro businesses (15.7 per cent) and other small businesses (25.4 per cent) reported lower use of intellectual property rights protection than larger businesses in 2010 11. One quarter of micro businesses reported the use of trade s skills, while 32 per cent of other small businesses reported financial skills, as the skills most likely to be used in undertaking core business activities during 2010 11. Generally the survival rate for small business is lower than that for medium or large businesses. Start-up Businesses Research into start-up businesses has been conducted by the Comprehensive Australian Study of Entrepreneurial Emergence (CAUSEE) study by the Australian Centre for Entrepreneurship Research (ACE) at Queensland University of Technology. CAUSEE allows the analysis of entrepreneurial entrants at two stages of development, nascent and young. Nascent firms are defined as firms in the process of being created, but not yet established in the market, and young firms are defined as having been operational for up to four years. Findings indicate that a majority (approximately 75 per cent) said they prefer to build a small and manageable firm to pursuing maximum growth. Rather than triggering an acquired taste for growth, experiences over time make these preferences shift towards an even greater majority favouring small and manageable. While the founders also use employees, unpaid helpers and a variety of external sources of knowledge to facilitate their start-ups, there are also indications that many founders do not draw sufficiently on social capital (network contacts) to counterbalance their own shortcomings. Less than a third of all nascent and young firms are active in face-to-face business networks (29 per cent). A significant minority engages in international exchange, and over time this remained unchanged. With regards to the use of various sources of funding for the start-ups, only one source personal savings is used by more than 50 per cent of all start-ups. Despite frequent references to the 3 Fs friends, family and fools most firms do not rely on such sources. Apart from credit card debt, even a major source such as bank funding is used only by a minority. IBSA SMALL BUSINESS REVIEW DISCUSSION PAPER V.2 6

EXISTING UNITS, SKILL SETS AND QUALIFICATIONS Registered Training Organisations This review is focused on the provision of the two nationally recognised small business qualifications and associated Skill Sets and units of competence. Public provision is through the network of Registered Training Organisations (RTO's) who have been endorsed by relevant agencies to offer the qualifications. RTO's may be either a public organisation (e.g. a TAFE College) or a private provider (Enterprise, Business or Association). According to training.gov.au in August 2014, there were 92 RTO's with endorsement to offer the BSB30307 - Certificate III in Micro Business Operations qualification and 313 RTO's with endorsement to offer the BSB40407 - Certificate IV in Small Business Management. Qualifications The Certificate IV in Small Business was first released with BSB07 Business Services Training Package Version 5.0, while the Certificate III in Micro-Business is a later addition (Version 8.0). The current VET (Version 9.0) Small and Micro Business national qualifications within the BSB Training Package include: BSB30307 - Certificate III in Micro Business Operations (Release 4) BSB40407 - Certificate IV in Small Business Management (Release 4) Details are provided below. For those unfamiliar with Training packages, please see the VET FAQs in Appendix 1. The following table summarises the key characteristics of the current qualifications. Qualification Total Units Required Core Elective Number of Listed Electives BSB30307 - Certificate III in Micro Business Operations 10 5 5 21 BSB40407 - Certificate IV in Small Business Management 10 4 6 28 Details of the qualifications are outlined below. BSB30307 Certificate III in Micro Business Operations Description This qualification reflects the role of skilled operators who apply a broad range of competencies in varied micro business contexts, using some discretion and judgement and relevant theoretical knowledge. They may provide technical advice and support to a small team. Job roles Independent Contractor Micro Business Operator. Packaging Rules Total number of units = 10 5 core units plus 5 elective units, of which: all 5 elective units may be selected from the elective units listed below and/or a Certificate III qualification from any currently endorsed Training Package or accredited course at the same qualification level one elective unit may be selected from a Certificate II or Certificate IV qualification if not listed below. Electives must be relevant to the work outcome, local industry requirements and the qualification level. IBSA SMALL BUSINESS REVIEW DISCUSSION PAPER V.2 7

Core units BSBSMB301A Investigate micro business opportunities BSBSMB302A Develop a micro business proposal BSBSMB303A Organise finances for the micro business BSBSMB304A Determine resource requirements for the micro business BSBSMB305A Comply with regulatory, taxation and insurance requirements for the micro business Elective units Creative Thinking BSBCRT301A Develop and extend critical and creative thinking skills BSBCRT501A Originate and develop concepts Customer Service BSBCUS301B Deliver and monitor a service to customers E-Business BSBEBU401A Review and maintain a website Financial Administration BSBFIA301A Maintain financial records BSBFIA303A Process accounts payable and receivable Financial Literacy FNSFLT201A Develop and use a personal budget Human Resource Management BSBHRM405A Support the recruitment, selection and induction of staff Innovation BSBINN301A Promote innovation in a team environment Intellectual Property BSBIPR405A Protect and use intangible assets in small business International Business BSBINT303B Organise the importing and exporting of goods IT Use BSBITU305A Conduct online transactions Relationship Management BSBREL401A Establish networks Small and Micro Business BSBSMB306A Plan a home-based business BSBSMB307A Set up information and communications technology for the micro business BSBSMB308A Improve energy efficiency in micro or small business operations Sustainability BSBSUS301A Implement and monitor environmentally sustainable work practices Workplace Effectiveness BSBWOR301B Organise personal work priorities and development BSBWOR302A Work effectively as an off-site worker Imported Units FNSFLT201A Develop and use a personal budget SIRXQUA001A Develop innovative ideas at work IBSA SMALL BUSINESS REVIEW DISCUSSION PAPER V.2 8

BSB40407 Certificate IV in Small Business Management Description This qualification reflects the role of individuals who use well-developed skills and a broad knowledge base in a wide variety of small business contexts. They apply solutions to a defined range of unpredictable problems, and analyse and evaluate information from a variety of sources. They may provide leadership and guidance to others, and have responsibility for the output of others. Job roles Small Business Manager. Packaging Rules - Total number of units = 10 4 core units plus 6 elective units, of which: all 6 elective units may be selected from the elective units listed below, or any currently endorsed Training Package or accredited course at the same qualification level 1 elective unit may be selected from a Certificate III or Diploma qualification, if not listed below. Electives must be relevant to the work outcome, local industry requirements and the qualification level. Core units BSBSMB401A Establish legal and risk management requirements of small business BSBSMB402A Plan small business finances BSBSMB403A Market the small business BSBSMB404A Undertake small business planning Elective units Creative Thinking BSBCRT501A Originate and develop concepts Customer Service BSBCUS401B Coordinate implementation of customer service strategies BSBCUS402B Address customer needs E-Business BSBEBU401A Review and maintain a website Financial Administration BSBFIA402A Report on financial activity Franchising BSBFRA401B Manage compliance with franchisee obligations and legislative requirements Innovation BSBINN301A Promote innovation in a team environment Intellectual Property BSBIPR405A Protect and use intangible assets in small business International Business BSBINT303B Organise the importing and exporting of goods Management BSBMGT404A Lead and facilitate off-site staff Marketing BSBMKG413A Promote products and services BSBMKG414B Undertake marketing activities Project Management BSBPMG522A Undertake project work Relationship Management BSBREL401A Establish networks BSBREL402A Build client relationships and business networks Research BSBRES401A Analyse and present research information Small and Micro Business BSBSMB405B Monitor and manage small business operations BSBSMB406A Manage small business finances BSBSMB407A Manage a small team IBSA SMALL BUSINESS REVIEW DISCUSSION PAPER V.2 9

BSBSMB408B Manage personal, family, cultural and business obligations BSBSMB409A Build and maintain relationships with small business stakeholders BSBSMB410A Review and implement energy efficiency in business operations BSBSMB411A Manage specialist external advisory services BSBSMB412A Introduce cloud computing into business operations Sustainability BSBSUS301A Implement and monitor environmentally sustainable work practices Imported Units FNSACC406A Set up and operate a computerised accounting system PSPGOV407B Provide a quotation SIRXQUA002A Lead a team to foster innovation Small Business Skill Sets BSBSS00047 - Small Business Contracting Skill Set BSBSMB401 Establish legal and risk management requirements of small business BSBSMB402 Plan small business finances PSPGOV407B Provide a quotation BSBSS00048 - Small Business Financial Management Skill Set BSBSMB304 Determine resource requirements for the micro business BSBSMB402 Plan small business finances BSBSMB406 Manage small business finances BSBSS00049 - Small Business Home Based Business Skill Set BSBSMB304 Determine resource requirements for the micro business BSBSMB306 Plan a home based business BSBSMB307 Set up information and communications technology for the micro business BSBSS00050 - Small Business Indigenous Corporate Governance Skill Set BSBATSIM416 Oversee organisational planning BSBGOV401 Implement Board member responsibilities BSBGOV402 Work within organisational structure BSBSS00051 - Small Business Intellectual Property Skill Set BSBIPR405 Protect and use intangible assets in small business BSBCRT501 Originate and develop concepts BSBSS00052 - Small Business Marketing Skill Set BSBMKG401 Profile the market BSBMKG402 Analyse consumer behaviour for specific markets BSBMKG414 Undertake marketing activities BSBSMB403 Market the small business BSBSMB301 Investigate micro business opportunities BSBSS00053 - Small Business Operations Preparatory Skill Set BSBIND201 Work effectively in a business environment BSBSMB201 Identify suitability for micro business BSBWOR204 Use business technology FNSFLT203A Develop understanding of debt and consumer credit BSBSS00054 - Small Business Preparatory Skill Set BSBADM101 Use business equipment and resources BSBITU101 Operate a personal computer FNSFLT201 Develop and use a personal budget IBSA SMALL BUSINESS REVIEW DISCUSSION PAPER V.2 10

Five of the eight BSB skill sets currently utilise the existing small business units: BSBSS00017 - Small Business Contracting Skill Set (BSBSMB 401 +402) BSBSS00018 - Small Business Financial Management Skill Set (BSBSMB 304 +402 +406) ** only BSBSMB units BSBSS00019 - Small Business Home Based Business Skill Set (BSBSMB 304 +306 +307) ** only BSBSMB units BSBSS00022 - Small Business Marketing Skill Set (BSBSMB 301 +403) BSBSS00023 - Small Business Operations Preparatory Skill Set (BSBSMB201) FULL DETAILS OF ALL UNITS, SKILL SETS AND QUALIFICATIONS CAN BE ACCESSED THROUGH THE SEARCH FUNCTION ON THE TRAINING.GOV.AU WEBSITE: training.gov.au/search IBSA SMALL BUSINESS REVIEW DISCUSSION PAPER V.2 11

Cross industry utilisation - BSBSMB units and location BSB Small business units are not only used in IBSA s Business qualifications, but appear in many other Industry training package qualifications and skill sets. The table below shows how widely each unit is used. No of Training Packages No of qualifications No of Skill Sets BSBSMB201A - Identify suitability for micro business 3 10 1 BSBSMB301A - Investigate micro business opportunities 13 70 1 BSBSMB302A - Develop a micro business proposal 4 11 - BSBSMB303A - Organise finances for the micro business 7 15 - BSBSMB304A - Determine resource requirements for the micro business BSBSMB305A - Comply with regulatory, taxation and insurance requirements for the micro business 7 14 3 9 34 - BSBSMB306A - Plan a home based business 7 29 1 BSBSMB307A - Set up information and communications technology for the micro business BSBSMB308A - Improve energy efficiency in micro or small business operations BSBSMB401A - Establish legal and risk management requirements of small business 5 12 1 1 1-24 97 3 BSBSMB402A - Plan small business finances 20 71 3 BSBSMB403A - Market the small business 25 83 1 BSBSMB404A - Undertake small business planning 25 101 2 BSBSMB405B - Monitor and manage small business operations 17 54 1 BSBSMB406A - Manage small business finances 23 105 3 BSBSMB407A - Manage a small team 17 68 1 BSBSMB408B - Manage personal, family, cultural and business obligations BSBSMB409A - Build and maintain relationships with small business stakeholders BSBSMB410A - Review and implement energy efficiency in business operations 7 16-5 6-1 1 1 BSBSMB411A - Manage specialist external advisory services 1 1 1 BSBSMB412A - Introduce cloud computing into business operations 1 1 1 IBSA SMALL BUSINESS REVIEW DISCUSSION PAPER V.2 12

ISSUES FOR CONSIDERATION The project will focus on enhancing the existing units, skill sets and qualifications as well as identifying how to add value to the current options, especially for existing businesses. This is a draft list of issues that have been identified through desktop research and discussion with NPRG members. This is not meant to be exhaustive, but act as a starting point for the consultation process which will involve interviews and discussions with a broad range of industry representatives, either faceto-face or using electronic communication strategies. We will be gathering initial feedback through a short, five minute survey that aims to determine the critical issues to be addressed. There are two versions of the survey: one for those who understand small business but have limited experience with vocational education and training - Click here ( link to survey) and another for those who have knowledge of the VET system and the existing small business qualifications Click here ( link to survey) Business life stage - New vs. existing While the two current qualifications have been well utilised with consistent enrolment numbers over the past few years, anecdotal feedback indicates that the core of the qualifications is not attractive to existing businesses. Key questions Should the qualifications be restructured to cater for businesses at different stages? If so which are the skills (units) that are required by all businesses regardless of business age? What different skills are required by those starting a new enterprise, as opposed to those with an established business? Qualification level Anecdotal feedback has also indicated that the level of the small business qualification is not suitable or attractive to existing businesses, with some preference for a Diploma level qualification. Key questions Are the qualifications pitched at right level? If not, what AQF level should they be pitched at? Content Gaps Research and initial discussions have highlighted some potential content gaps that may need to be addressed by changes to existing units or potentially developing new units in the following areas: Time management People development Collaboration and networking Situational leadership Importing & Exporting Managing compliance Digital Engagement. IBSA SMALL BUSINESS REVIEW DISCUSSION PAPER V.2 13

Key questions Do the current units, skill sets and qualifications cover these areas adequately? If not how can the gaps be best addressed by amending or updating existing units or creating new units? Given the increasing importance of digital strategies, should there be a core unit in both qualifications around digital engagement? Thank you for taking the time to read this Discussion Paper, and we look forward to your input into the review. HOW CAN YOU HAVE A SAY? Please complete the short survey by November 14 th to provide initial feedback on the critical issues or email the project consultant directly with specific comments - graham@serviceskillssa.com.au There are two versions of the survey: one for those who understand small business but have limited experience with vocational education and training - Click here ( link to survey) and another for those who have knowledge of the VET system and the existing small business qualifications Click here ( link to survey) At the end of the survey you can register your interest in receiving information about the review or you can email the project consultant graham@serviceskillssa.com.au directly. This will mean that you are kept in the loop as to potential changes to the qualifications, skill sets and units. You can participate in consultations, speak directly to the consultants or read and comment on existing qualifications, units and skill sets as well as any future drafts that are produced for public feedback. This ongoing information will appear on the IBSA website or by email if you have registered. IBSA SMALL BUSINESS REVIEW DISCUSSION PAPER V.2 14

APPENDIX 1 VET FAQs How is a training package developed? The development of training packages is managed by IBSA on behalf of industry. To gain national endorsement, developers must provide evidence of extensive consultation and support within the industry area or enterprise. On successful completion of a quality assurance process, training packages are endorsed by the Government and placed on the training.gov.au website www.training.gov.au The process looks like this: What are training packages? A training package is an integrated set of nationally endorsed units of competency, AQF qualifications and assessment guidelines designed for a specific industry, industry sector or enterprise. Training packages are a key resource for registered training organisations (RTOs) in the delivery of structured, accredited training. They describe the skills and knowledge that individuals need to possess to be able to perform effectively in the workplace. Training packages consist of a set of endorsed components. Some training packages also have an associated collection of support materials, called companion volumes and implementation guides. Training Packages consist of the following: Endorsed components: units of competency; assessment requirements (associated with each unit of competency); qualifications; and credit arrangements. Non Endorsed components: Implementation Guide One or more quality assured companion volumes. IBSA SMALL BUSINESS REVIEW DISCUSSION PAPER V.2 15

What is the AQF? The AQF is the national policy for regulated qualifications in the Australian education and training system. It incorporates the quality assured qualifications from each education and training sector into a single comprehensive national qualifications framework. It looks like this: http://www.aqf.edu.au/aqf/in-detail/2nd-ed-jan-2013/ What are packaging rules? Packaging rules and elective units The packaging rules for a training package qualification set out the overall requirements to achieve that qualification. The packaging rules clearly state what the core and elective requirements are for that qualification. Packaging rules specify: the number and source of elective units that can be included in a qualification the number of elective units that can be drawn from within the host training package the number of elective units that can be drawn from other training packages, and the number of elective units that can be drawn from accredited courses. Sometimes, units taken from other training packages or accredited courses are referred to as imported units. In some cases, a stated number of elective units must be selected from a specific list (or bank ) of units identified in the packaging rules. Elective units selected must be relevant to: the work outcome local industry requirements, and the qualification level. http://www.asqa.gov.au/faqs/frequently-asked-questions.html IBSA SMALL BUSINESS REVIEW DISCUSSION PAPER V.2 16