This excellent paper was commissioned by Independent Freelancers Australian supported by the Commonwealth Bank of Australia and undertaken by Monash University. The aim of the research was to develop a better understanding of the independent freelancer/ micro business owner/ self employed sector in Australia. They rightfully argue that a better understanding is crucial for anyone wanting to interact within such a complex sector. They suggest that the responses of this group to current and future economic situations will be a critical litmus test for the whole of society. Moreover the success or otherwise of this group has direct implications for the collection of taxes, for the repayment of loans, and via a traditional 'multiplier effect' there may be implications for many larger businesses. (PDF file, 12 pages, 1,717 KB)

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Unformated preview of the document: 'A Profile of Australian Micro-Business' (Part 2):

Age and Sex
Figure 2 also shows that there were proportionally more men than women
across all age groups. Further, around half of independent contractors (50%
of men and 58% of women) were aged between 35-54 years.
d) Occupation
Contracting has typically been associated with the blue collar area but the
ABS data shows the dominance of professionals followed by technical and
trades workers within independent contracting. Overall, male independent
contractors were most likely to be Technicians and Trades Workers, with over
one third (36%) employed in this occupation followed by Professionals (19%).
Figure 3: Independent Contractors by Occupation
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While technical & trades and professional occupations account for 55% of
male independent contractors, clerical & admin as well as professional
occupations account for 55% of females. The ABS (2009a, p.20) notes that
the rate of 32% for female professionals in contracting exceeds the 24%
found in this occupation amongst female employees.
e) Industries
The importance of the construction industry emerges in Figure 4 and also
reveals that male independent contractors were most likely to be found
operating in Construction, with 41% working in that industry.
Figure 4: Independent Contractors by Selected Industries
The great difference between the genders is shown also where the highest
proportion of female independent contractors is found in the Professional,
scientific and technical services (23%) industry. It is important to caution that
the ABS (2009a) observes that the term industry used in FOES and ALMS of
independent contractors reflects the industry of the independent contractors'
business rather than the industry of their client.
f) Hours worked
The working hours of independent contractors are much more variable when
compared to the other two forms of employment. It is well known that
individuals who operate their own business tend to work longer hours than
those who are employees and this comparative view is the focus of the ABS
in their presentation of independent contractor data. As Figure 5 shows, the
working hours of independent contractors are much more variable when
compared to the other two forms of employment. While the average weekly
hours of male independent contractors was 44 hours per week, female
independent contractors worked an average of only 27 hours. Thus, while
male independent contractors work less than other males business operators,
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(who work 49 hours on average), they work more than male employees (who
work 41 hours on average).
Figure 5: Average Weekly Hours Worked by Males & Females
The 27 hours female independent contractors work in an average week
however, is less than the 33 hours worked by both female employees and
other business operators. This result suggests that the profile and possibly the
motivations of females in independent contracting may be quite distinct from
other forms of employment.
Continuing the theme of variability within independent contracting noted in the
section above, the number of hours worked also varied from those engaged in
other forms of employment. Figure 6 shows that while over 55% of male
independent contractors worked 'weekdays only', this compared unfavourably
with over two thirds (69%) of employees but favourably with less than half
(43%) of other business operators worked 'weekdays only'.
Figure 6: Days of the Week Worked
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Behaviours/motivations – the ATO view
As with the ABS data, the perspective from the ATO is a macro one of the
segment they identify as micro-business. The focus of the ATO is on the
individual as a client/taxpayer rather than as a form of employment, and the
language of micro business rather than independent contractor is a clear
move away from the lengthy, legal history of taxation and the vexed question
as to who has the liability to pay. It is worth noting that in most Western
nations it is the dual, and often related, areas of occupational health and
safety (OH&S) and taxation that generate the largest academic and
practitioner literatures on independent contracting.
The changing attitude of the ATO to the micro business/independent
contractor sector is reflected in the strong methodological blend of qualitative
and quantitative research.
1) Debt
This revealed that those with debt were not comfortable with any form of debt
but

Unformated preview of the document: 'A Profile of Australian Micro-Business':  Part 1, Part 2, Part 3, Part 4