6403 Produce Self-Assessments of Suitability for Managing Small Business Enterprise

Explanatory notes

1Diversity factors refer to gender, disability, culture, age, sexual orientation, family status, religion, and Equal Employment Opportunities (EEO).

2This unit standard focuses on one’s personal skills and aptitudes in relation to small business. Unit standard 1989, Research small business opportunities, focuses on the businesses themselves.

3Small business enterprises are diverse, and preliminary assessments of small business opportunities could require consideration of a range of current legislation, such as:

Commerce Act 1986

Resource Management Act 1991

Sale of Goods Act 1908

Fair Trading Act 1986

Income Tax Act 2007

Goods and Services Tax Act 1985

Health and Safety in Employment Act 1992

Employment Relations Act 2000

Privacy Act 1993

Human Rights Act 1993.

Outcomes and evidence requirements

Outcome 1

Identify personal business aspirations and establish goals for self-employment.

Evidence requirements

1.1Potential self-employment options for the provision of products or services are identified, and are explained in relation to business aspirations.

1.2Personal business skills and relevant previous experience are analysed, and are related to self-employment options.

Rangebusiness skills may include but are not limited to – technical, occupational, professional, managerial, entrepreneurial, creative, industry experience.

1.3The impacts of employment circumstances of job dissatisfaction and redundancy are examined in terms of influence on self-employment decisions.

1.4Personal characteristics of successful small business managers are identified, and are contrasted with those of the potential self-employed person.

1.5Personal goals and resources are identified, and are assessed in terms of personal strengths and weaknesses.

1.6Personal business aspirations are identified, and self-employment goals established and prioritised in relation to business aspirations.

Rangeself-employment goals – preferred type of business activity and business environment, extent of personal participation in business operation, income and standard of living expectations, personal growth and development needs, time commitment, short- or long-term business commitment.

Outcome 2

Relate self-employment goals to business idea(s), and assess personal business competence in terms of business idea(s).

Evidence requirements

2.1Preliminary business idea(s) is developed, and the nature of the business activity and product of the business operation are specified.

2.2Assessment and interpretation of the potential for, and methods by which financial and non-financial benefits will be derived from the business activity are realistic for the business operation.

2.3The extent to which self-employment goals can be achieved through the implementation of business idea(s) is assessed and evaluated in terms of meeting personal business aspirations.

2.4Assessment of the extent of compatibility of personal business skills with business idea(s) identifies gaps in capability to implement business idea(s).

Rangebusiness skills may include but are not limited to – technical, occupational, professional, managerial, entrepreneurial, creative, industry experience.

Outcome 3

Identify form of participation and contribution of key individuals.

Evidence requirements

3.1The nature and extent of participation and contribution of the founder/s in the small business enterprise are determined.

Rangeparticipation options may include but are not limited to – owner-operator, owner-manager, owner-director, co-owner; part- or full-time commitment.

3.2The nature and extent of participation and contribution of family members in the small business enterprise are determined, and benefits and disadvantages of participation are clarified.

3.3The extent of participation of other key people and associates in the business enterprise is determined, and the nature of their contribution is clarified.

Rangeco-owners, key staff, investors, advisers.

Outcome 4

Identify the interrelationships of diversity factors and business principles in relation to enterprise opportunities.

Evidence requirements

4.1Small business enterprise opportunity is assessed for the ability and extent to which cultural values can be incorporated.

4.2Business and ethical principles are examined in terms of the interrelationship with cross-cultural and diversity factors.

This unit standard is expiring. Assessment against the standard must take place by the last date for assessment set out below.

Status information and last date for assessment for superseded versions

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Please note

Providers must be granted consent to assess against standards (accredited) by NZQA, before they can report credits from assessment against unit standards or deliver courses of study leading to that assessment.

Industry Training Organisations must be granted consent to assess against standards by NZQA before they can register credits from assessment against unit standards.

Providers and Industry Training Organisations, which have been granted consent and which are assessing against unit standards must engage with the moderation system that applies to those standards.

Requirements for consent to assess and an outline of the moderation system that applies to this standard are outlined in the Consent and Moderation Requirements (CMR). The CMR also includes useful information about special requirements for organisations wishing to develop education and training programmes, such as minimum qualifications for tutors and assessors, and special resource requirements.