SMERC Research
Work in Progress
Effective learning and information channels for small to medium tourism enterprises (by sector)
Staff: Professor Beth Walker, Robyn Morris
Industry Partners: Victoria University; Cooperative Research Centre for Sustainable Tourism
Timeline: 2009
The literature suggests that SME’s are very diverse and that their information seeking skills are limited, however, knowledge of the information seeking skills in small and medium tourism enterprises (SMTEs), is limited. This project, therefore, will aim to identify the preferred learning channels and information sources of SMTEs and the implications of this for government and the tourism industry.
SME’s and environmental management: Impact, measurement and the influence of education
Staff: Dr Janice Redmond, Professor Beth Walker
Industry Partners: City of Stirling
Timeline: 2009-2010
This research will measure the level of impact small and medium enterprises (SMEs) within the City have on the environment, then implement an education intervention encouraging better environmental management practices to address the negative impacts. This project will involve surveying up to 300 SMEs, implementing an intervention, and conclude with a post-intervention survey collection. This will be the first time such an in-depth study has been conducted in conjunction with a metropolitan Local Government Authority . As a consequence, knowledge of the impact of SMEs on the environment and the influence of environmental education on efforts to reduce the environmental harm from their business practices will be better understood.
Identification of small business management skills and competencies for business growth and development
Staff: Professor Beth Walker, Dr Janice Redmond
Industry Partners: Business Foundations
Timeline: 2008-2009
Poor management skills are a critical barrier to small business achieving their full growth potential. This project will study existing management skills and competencies of small business owner-managers and identify stages in the business life cycle where such skills/competencies are most needed. This knowledge will provide governments and small business support organisations with an understanding of which and when support is most needed to take small businesses ‘to the next level’ of growth and development. A vibrant and sustainable small business sector provides economic and social benefits but these are jeopardised by owner-managers generally being ‘good technicians but poor managers’.
On-line training and SMEs. Australian Research Council (ARC) Linkage Grant
Researchers: Professor Beth Walker, Associate Professor Sue Stoney, Dr Beverley Webster, Professor Rowena Barrett, Tara Smith and Jackie Scates
Industry Partners: Department of Education and Training, Brett Dorney and Kate Guthrie
Timeline: July 2006–June 2009
It is widely recognised that training and education are effective ways to reduce small business failure. Current training delivery methods for small business owners tend to be static and do not address the real needs of new owners, which centre around just-in-time business specific skills development. One method that has been suggested to overcome the time pressures for small business owners is to deliver training on-line. However, it is evident that small business owner/managers have different understandings of on-line training and therefore the current models of delivering training on-line may in fact not be the most suitable to address specific needs. This research will explore the appropriateness of this training method for small business owner/managers and will develop a framework of appropriate training delivery.
Completed Research Projects
Kenwick, Maddington, Cockburn sustainable industry project
Staff: Professor Beth Walker, Dr Janice Redmond
Industry Partners: Swan Catchment Council
Timeline: 2007–2008
Although individually SME operations appear to have a small impact on the environment, latest estimates suggest their collective footprint to be as high as 70% of global pollution. A lack of awareness of their impact on the environment combined with a lack of knowledge of how to minimise the damage they contribute has led to their low level of participation in environmental management practices. This project aimed to determine the level of interest in the environment by SME owner-managers and the volume of waste produced by SMEs in two small light industrial areas. After obtaining this information an intervention strategy to improve waste management practices was implemented.
Outcomes of the project show that the SME owner-managers are interested in the environment, particularly to maintain it as well as possible for future generations. Results show that SMEs made some good progress during the research period to reduce waste and implement energy efficiencies. However, much greater focus is required by stakeholders to ensure that similar outcomes are achieved by SMEs in terms of water monitoring and implementation of better water management practices.
Family small business succession: dynamics of founder-successor gender in successor selection project
Staff: Dr Calvin Wang, Dr Janice Redmond and Professor Beth Walker
Industry Partners: De Montfort University, UK
Timeline: August 2007–July 2008
This project will explore the dynamics of founder-successor gender in family small business (FSB) succession, with a view to better understanding gender biases in inter-generational business ownership transfers.
Daughters are traditionally discriminated against in the selection of FSB successors. With increasing female business ownership, it is important to understand the attitudes of female founders towards succession. Effective succession ensures that FSBs continue as viable entities, and maintains their significant economic contributions.
Founder-successor dyads involving mother-daughter, father-daughter, mother-son, and father-son will be studied. Results will be compared against a mirror project in the UK to produce national and international findings.
Exploring the skills shortage and its effects on small business growth in regional Western Australia
Staff: Dr Calvin Wang and Dr Janice Redmond
Industry Partners: Small Business Centre Eastern Wheatbelt, Shire of Brookton, Shire of Bruce Rock, Shire of Corrigin, Shire of Kondinin, Shire of Kulin, Shire of Narembeen and Shire of Quairading
Timeline: January 2008–December 2008
Between 30%–40% of Australian small businesses are located in regional areas. These enterprises are vital to the economic and social fabric of the regions, and their growth is closely tied to their human resource capacity.
Australia is currently facing severe shortages of skilled workers. The inability to recruit skilled workers represents a substantial growth barrier for regional small business, and regional Australia generally.
This project will explore the effects of the current skills shortage on small businesses in seven regional centres in Western Australia. Findings will support local government strategies to address the problem.
Exploring environmental management education for small and medium sized enterprises
Researchers: Professor Beth Walker, Dr Calvin Wang, Dr Janice Redmond and Dr Lynnaire Sheridan
Industry Partners: Swan Catchment Council
Timeline: Feb 2007–Jan 2008
The collective impact of small & medium enterprises (SMEs) on the natural environment is substantial, making it critical that these businesses implement better environmental management practices (EMP). However SMEs have been slow to implement EMP due to a lack of awareness and knowledge, and the assumption of cost. This is exacerbated when those tasked with managing the environment also lack knowledge, particularly in respect of world best practice, innovations and implementation drivers/barriers in relation to SMEs.
This collaborative research project is the first of its kind in Australia and will investigate these problems by synthesising national/international EMP knowledge in regards to small businesses. A comprehensive report including an online resource to support SME engagement by environmental management organisations will be the main outcome of this project.
Developing a predictive model of the growth intentions of home-based business (HBB) owner-operators
Staff: Professor Beth Walker, Dr Calvin Wang and Dr Janice Redmond
Industry Partners: Small Business Development Corporation, Victoria University, Department of Industry Innovation and Regional Development Victoria.
Timeline: August 2006–October 2007
Seventy-two percent of all small businesses in Australia are home-based, thus making them the single largest business sector, which in turn provides significant livelihoods and employment opportunities for almost 1 million owner-operators. The growth of HBBs has become an important policy concern for governments at all levels; however, there has been limited research into this significant business sector.
This national study aimed to generate knowledge in relation to the nature and determinants of HBB growth, and provide a better overall understanding of HBBs which will be used to inform government policy.
Results from the project show overall that HBBs in Western Australia are operated equally by men and women, in a full-time capacity, and on average employ one other person. While regional businesses have been in operation longer than metropolitan businesses, the majority have been in operation less than 10 years. Whereas some businesses have relatively large turnovers (in excess of $250,000 per annum), almost half have an annual turnover of $50,000 or less, suggesting that HBBs are more important as providers of self-employment (for operators) than employment for the general population. However, at least one in five operators have significant growth aspirations, defined as either High Growth HBBs or Growth-oriented HBBs, matched by similar significant increases in annual turnover, staff employment, equipment and technology investment, and new product/service development. These operators were generally those ‘pulled’ (i.e., drawn, attracted, motivated) rather than ‘pushed’ (i.e., ‘forced’ into self-employment due to a lack of other options) into business ownership, and were driven by a high need to ‘be their own boss’, to make ‘lots of money’, and to achieve financial security.
Bellevue sustainable industry project
Staff: Professor Beth Walker, Dr Janice Redmond and Ute Goeft
Industry Partners: Swan Catchment Council
Timeline: September 2005–August 2007
Although individually SME operations appear to have a small impact on the environment, latest estimates suggest their collective footprint to be 70% of global pollution. A lack of awareness of their impact on the environment combined with a lack of knowledge of how to minimise the damage contribute to their low level of participation in environmental management practices. This project aimed to determine the level of interest in the environment by SME owner-managers and the volume of waste produced by SMEs in one small light industrial area. After obtaining this information an intervention strategy to improve waste management practices was implemented.
The outcomes of the project show that the SME owner-managers are interested in the environment, particularly to maintain it as well as possible for future generations. To this end the owner-managers participated in the intervention process and many increased the positive impacts and reduced the negative impacts of their operations during the study period. Moreover, 61% advised that the project, not other factors, had increased their level of interest in environmental issues. These outcomes have encouraged the replication of the intervention in other light industrial areas within the Perth metropolitan area and continued work with the Bellevue business owner-managers to encourage continuous improvement.
Final Report (PDF 2MB)
C-Commerce for SMEs. ARC Linkage Grant
Researchers: Professor Janice Burn, Professor Craig Standing, Dr Shirley Bode, Professor Beth Walker, Michelle Rowe, Helen Cripps
Industry Partners: City of Swan, City of Wanneroo and the South West Group
Timeline: March 2004–March 2007
Collaborative commerce — also known as c-commerce — refers to the cooperation and interaction between businesses, suppliers, customers and other parties via ICT to take advantage of new trading opportunities. Collaboration has emerged as a critical practice to improve business performance and revolves primarily around the exchange of information.
This research focuses on the relevance of collaborative information exchanges between Small to Medium Enterprises (SMEs), in particular, the 15,000 SMEs located in the South West Metropolitan region, City of Swan and the City of Wanneroo. The project aims to discover the drivers for SMEs to adopt c-Commerce, how SMEs can gain value from knowledge networks, and strategies that foster entrepreneurship and innovation in c-commerce for SMEs. Findings will assist policy makers in encouraging a greater uptake of c-commerce by SMEs within these regions.
Managerial expertise in the wine industry: implications for rural development
Staff: Professor Alan Brown, Professor Beth Walker, Dr Steve Charters, Professor Marilyn Clark-Murphy, Ms Nicole Davis and Ms Justine Nagorski
Timeline: November 2005–January 2007
The wine industry is a new fast growing business sector and with any growth comes issues of sustainability. In addition, the growth has been in smaller boutique type wineries which are often started by people without a primary background in business, which adds another dimension of issues related to economic sustainability. As small business owners and managers of wineries have often changed industries, careers and come from a variety of backgrounds, the research provided them with the ability to review and analyse current practices and to contribute to the development of training initiatives targeted specifically at their industry needs.
Accordingly, the project investigated the managerial and business skills, as seen by winery owners, required to operate a successful (i.e. economic viability) wine operation. Secondly, the current level of managerial expertise of the owner/s including their proficiency in business operational areas such as marketing and sales promotion, human resource management, quality management, strategic management, and the legal and financial aspects of small business operation. Finally, identification of the managerial skills training needs relevant to this industry.
Results highlighted diversity in the industry with different sectors having different needs. These are encapsulated within identified groups: survivors, succeeders, successors, sophisticated farmers, skilled entrepreneurs and subsidisers. Relative ease of entry increases the likelihood that entrants may lack business and managerial skills. In general the owner/managers of small wineries are highly analytical about the technical aspects of their business and, in some cases, about the importance of sales and marketing functions. However, they are relatively unaware of and unconcerned with issues of management expertise and general business management skills. As reputation is a very important factor in the success of the industry, particularly for premium wines, it is therefore in the interest of the industry as a whole to ensure there are high levels of business and managerial skills. Accordingly, those providing formal viticultural and ‘technical’ training to the industry should be encouraged to included business and management training in their courses. Furthermore, VET and other training providers should be encouraged to develop programs for the industry that encompass broad business and management skills.
Investigating the planning practices of SMEs in metropolitan and regional WA
Staff: Professor Beth Walker, Dr Janice Redmond and Dr Calvin Wang
Timeline: August 2006–September 2006
Planning is an important business activity and a large body of research points to business performance being positively associated with the level and sophistication of planning undertaken. Unfortunately, the majority of SMEs do not plan and scant attention is paid to strategic issues. Although a lack of planning is commonly attributed to a lack of management skills (especially in planning), a lack of time and even a desire for ‘secrecy’, little is actually known about the factors that facilitate and hinder planning within SMEs.
Accordingly, the project investigated the relationship between strategic planning in small businesses and a number of factors focused on the operator and the business (e.g., operator demographics, operator skills, risk propensities, operator business ownership motivations, business location, business type, industry type, turnover, size, etc.).
Results showed that business ownership motivations were the most important factor relating to whether or not businesses engaged in strategic planning. Four groups of small business operators were identified based on business ownership motivations. In most cases, operators in business to achieve financial goals were more likely to engage in strategic planning than operators motivated by lifestyle change and those ‘pushed’ into small business ownership. Operators driven by personal achievement goals (e.g., self-development, personal challenge and recognition) were similar to ‘financial’ operators and showed a greater likelihood to strategically plan. Overall, ownership motivations are diverse and significantly influence how operators manage their businesses. Accordingly, research into small business strategic planning needs to focus on the operator and his/her personal motivations and ambitions.
- Publications:
- Wang, C., Walker, E. A. & Redmond, J. (2006). Ownership motivation and strategic planning in small business. Journal of Asia Entrepreneurship and Sustainability, Vol.ii (4), pp.26-50.
- Wang, C., Walker, E. A. & Redmond, J. (2007). Explaining the lack of strategic planning in SMEs: The importance of owner motivation. International Journal of Organisational Behaviour, Vol. 12 (1), pp.1-16.
The appropriateness of current models of on-line training for SMEs
Researchers: Dr Beverley Webster, Professor Beth Walker and Dr Sue Stoney
Industry Partners: WA Department of Education and Training
Timeline: January–December 2005
It is widely recognised that training and education are effective ways to reduce small business failure. Current training delivery methods for small business owners tend to be static and do not address the real needs of new owners, which centre around just-in-time business specific skills development. One method that has been suggested to overcome the time pressures for small business owners is to deliver training on-line. The research found that as well as being time poor many small business operators believed that current training did not meet their required business development needs. In addition many small business operators had a poor understanding of what on-line meant, which then became a barrier rather than a facilitator to helping them up-skill. Whereas much of the business world is conducted via ICT, from small business this is not always the case.
Developing a framework of training for older small business owners
Researchers: Dr Beverley Webster, Professor Beth Walker and Julia Turner
Industry Partners: WA Department of Education and Training
Timeline: July 2004–June 2005
In relation to training needs, small business owners have traditionally been treated as a homogenous group, ignoring age and the differences in experiences, values and attitudes of older entrepreneurs. The results show that self-employment is not necessarily a first choice for many older people, as the perceived high level of risk associated with starting a business is a significant barrier. Training and improving their business competences was not seen as very important to many small business owners, which is compounded by their own high evaluation of their personal business skills. Older business owners are even less likely to value formal training as they rely on previous work and life experience, making them a difficult group to assist.
Business Expansion Opportunities in Malaga
Researchers: Professor Beth Walker
Industry Partners: The City of Swan
Timeline: January–December 2004
This longitudinal research project reviewed the current status of business and business activity in the Malaga Business District and noted any changes that have occurred since the original Malaga Business Audit that was conducted in 2001. The results of the 2004 survey demonstrated that Malaga has continued to be a high growth business area, with little leakage and many new businesses entering the area. Over the 3 year period the types of businesses located in Malaga had not changed to any great extent, with light manufacturing and wholesaling making up over 50% of all respondents. Most were still small businesses, that is employing 20 or less staff and most were still independently owned and operated.
Business expectations were still very positive, with over half of all business expecting to expand their businesses over the next 12 months, predominantly by increasing staffing levels, investing in new equipment and developing new products, service or markets. Businesses were also continuing to locate to Malaga with the most common reasons being the price of land, that Malaga was perceived as a growing area and previous locations being overcrowded and under serviced. One significant change was in relation to electronic commerce. Most businesses now had email and there was also a substantial increase in online business transactions, with 61% of respondents stating that they now conducted some business on-line, compared with 2001 figures of 17%
CBD Enhancement Research Project
Researchers: Professor Beth Walker and Dr Beverley Webster
Industry Partners: the City of Joondalup
Timeline: May–November 2004
The project aimed to identify the key indicators of current economic activity within the CBD, which could then be used by the City of Joondalup to assist in the development of a more targeted approach to continuous growth and development strategies for the area. Overall, businesses in the Central Business Distinct were positive about the location and saw Joondalup as a long term investment. The majority of businesses in the CBD were e-enabled and many of the businesses had growth plans for 2005 which included employing staff, investing in new equipment and developing new local markets and products. There were some issues relating to facilities and services in the area, in particular with parking and a perceived lack of atmosphere in some parts of the City. However many local businesses were not aware of some of the local business services that were currently available. Linking what is currently available would be one way to assist in the further economic development of the area.
Smart Business Incubators
Researchers: Professor Beth Walker, Professor Janice Burn and Dr Beverley Webster
Industry Partners: The City of Joondalup
Timeline: March– January - December 2004
This ECU- Industry Collaborative Grant project with the City of Joondalup mapped the current status of business incubators in Australia, and identified factors that lead to successful incubator management. The research found the factors included clear tenant selection criteria, concise program milestones with clear policies and procedures, on-site learning, leveraging of resources and entrepreneurial education and clear exit criteria. In addition some valued added services on the part of the incubator management, aimed at assisting in the development of the incubator tenants are also important. Good incubator management should lead to significant economic outcomes for the incubator tenant and therefore the local community.
Environmental Scan for North Metro Local Learning and Employment Partnerships
Researchers:Professor Beth Walker, Dr Beverley Webster and Associate Professor Sherry Saggers
Industry Partners: Local Learning Employment Partnership
Timeline: June–November 2003
Young people are vital to all communities and encouraging and supporting them to participate in education and training is a significant way to ensure that communities maintain a skilled workforce. However, there are many barriers to young people staying in the community, particularly the lack of appropriate jobs. It would appear that there is a misalignment with what is presently being offered in the VET sector and the current employment needs and requirements of industry. The goal of this environmental scan was to identify the employment issues for this specific age cohort and to make recommendations to strengthen the existing services and to identify an agenda for future strategic planning.
Hazelmere Business Study
Researchers: Professor Beth Walker
Industry Partners: The City of Swan
Timeline: March– September 2003
Businesses are the lifeblood of all communities and a healthy business sector brings economic and social benefits to an area. The aim of this study was to provide the City if Swan with some general baseline information regarding businesses within the Hazelmere and South Guildford areas. Business owners were surveyed to gauge their opinions on a variety of issues, such as the use of technology, their reasons for operating a business in the area and environmental management. The findings are being used by the City of Swan to develop appropriate economic and environmental programs to suit the area.
The Facilitators and Inhibitors to Growth in the Home-based Business Sector
Researchers: Professor Beth Walker
Industry Partners: The City of Swan
Timeline: January–December 2002