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Microbusinesses in Australia: a robust definition


Pfitzner, D and McLaren, J, Microbusinesses in Australia: a robust definition, Australasian Accounting Business & Finance Journal, 12, (3) pp. 4-18. ISSN 1834-2000 (2018) [Refereed Article]


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Copyright 2018 Australasian Accounting Business and Finance Journal and Authors

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DOI: doi:10.14453/aabfj.v12i3.2


Microbusinesses form an important basis for future entrepreneurial and economic development in Australia. The microbusiness sector contributes significantly to Australia’s economy, its social fabric and its ability to evolve, innovate, incubate and meet changing economic demands. The objective of this paper is to examine the important role microbusiness plays in the Australian economy and to provide a formal definition of what constitutes a microbusiness. Traditionally business in Australia has been classified as being a ‘small’, ‘medium’ or ‘large’ with the additional categories of ‘small to medium’ (SME) or ‘multi-national enterprises’ (MNE). An additional complication is created when trying to determine if a business exists or if it is just a ‘hobby’. Further to this, there is a lack of microbusiness specific data collected and published because the key regulatory and reporting agencies do no not recognise microbusinesses as a separate category or if they do, they are only included as a relatively unmonitored and unrepresented subset of small business. It is contended that Australia lacks an appropriately defined microbusiness category that could be used to create government support devices and steps to monitor their economic significance. This paper discusses the significant ramifications this has for businesses in general and the Nation’s economy. Based on this analysis the paper sets out the criteria for the establishment of a new category for microbusiness.

Item Details

Item Type:Refereed Article
Keywords:microbusiness, Australian Business Number, cash economy, black economy, hobby, business categories, economic monitoring, business development, tax evasion
Research Division:Law and Legal Studies
Research Group:Commercial law
Research Field:Taxation law
Objective Division:Law, Politics and Community Services
Objective Group:Community services
Objective Field:Ability and disability
UTAS Author:McLaren, J (Dr John McLaren)
ID Code:128720
Year Published:2018
Web of Science® Times Cited:2
Deposited By:TSBE
Deposited On:2018-10-09
Last Modified:2019-01-15
Downloads:61 View Download Statistics

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