Chapter heading 1

TABLE 2 – Numbers of Small Businesses 1997 – 2007

Year	1997	2001	2007
All Businesses	1,051,900	1,281,700	2,011,770
Small Business	846,300	1,122,000	1,927,590
Non-employing businesses	392,700 (46.4%)	582,100 (51.9%)	1,171,832 (58.2%)
Businesses that employed 1–4 people	323,100 (38.2%)	370,100 (33%)	527,445 (26.2%)
Businesses with 5-19 employees	130,500 (15.4%)	169,800 (15.1%)	228,313 (11.4%)
Small business as a percentage of all businesses	80.5%	87.5%	95.8%

15. 
    This period has also seen an increase in the numbers of businesses without employees, where non-employing businesses have increased as a proportion of small businesses from 46.4 per cent to 58.2 per cent.
    
16. 
    Small businesses provided employment for around 3.82 million people in 2005–06. This accounted for around 46 per cent of private sector employment.²⁸
    

Franchising

17. 
    Research commissioned by the Franchise Council of Australia²⁹ has estimated that there were approximately 1,100 franchisors (i.e. controlled a franchise system) in Australia in 2008, compared with 693 in 1998.
    
18. 
    Further, the research found that in 2008 there were an estimated 71,400 franchisees (i.e. persons who operate a franchise) employing an estimated 413,500 persons, comprising:
    

• 
  154,900 (37.5 per cent) permanent full-time employees (a decrease from 208,100 in 2006);
  
• 
  96,210 (23.3 per cent)permanent part-time employees (an increase from 72,800 in 2006); and
  
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  162,390 (39.3 per cent) casual employees (an increase from 145,600 in 2006).
  

19. 
    Franchisees were found to be typically male and aged between 30 and 50 years (46 per cent of franchisees) and working full-time (57 per cent).
    
20. 
    The research also indicated that most franchising takes place in the retail trade sector, which accounts for 28 per cent of franchisors. Other major franchisor industry sectors included:
    

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  accommodation and food services (including food retail, fast food and coffee shops), which represents 16 per cent of franchisors;
  
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  administration and support services (including travel agencies, office services, domestic and industrial cleaning, gardening services and lawn mowing), which represents 15 per cent of franchisors; and
  
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  other services (including personal services, pet services, auto repairs and servicing and information technology services), which represents 10 per cent of franchisors.
  

Changes in the organisation of work

21. 
    Over the past 25 years, changes in the organisation of work in Australia have led to a marked growth of part-time, fixed term and temporary employment arrangements. These changes have in large part been caused by:³⁰
    

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  organisational practices such as outsourcing, downsizing, restructuring and privatisation;
  
• 
  management techniques such as labour leasing and franchising; and
  
• 
  structural changes that have been occurring in many developed economies, including higher female labour force participation and the expansion of the service industries.
  

22. 
    However, there is a concern that such working arrangements may adversely affect OHS, for example, where work targets or payment structures are in conflict with the ability to adhere to safety requirements. Additionally it is suggested these arrangements have diluted or, in some cases, bypassed existing occupational health and safety regulations.³¹