1 This release presents detailed findings on the management and organisational capabilities of Australian business, as collected by the 2015-16 Business Characteristics Survey Management Capabilities Module (MCM).The design and processes for the survey were based on the Business Characteristics Survey (BCS) and it was collected as a separate module of the BCS.
2 The 2015-16 release of the MCM is the inaugural collection; and produces baseline data on management and organisational capabilities of Australian businesses. It presents statistics on a selection of topics including: Key Performance Indicators; use of data in decision making; strategic plans; skills; supply chain; environmental management; and demographic information related to the Principal Manager.
Statistical units used
3 The Economics Unit Model is used by the ABS to determine the structure of Australian businesses and other organisations. The model consists of:
The Enterprise Group (EG)
Legal Entities (LEs)
Type of Activity Units (TAUs)
4 Businesses contributing to the estimates in this publication are sourced from the ABS Business Register (ABSBR), and are selected at either the Australian Business Number (ABN) unit or the Type of Activity Unit (TAU) level, as described below.
5 In the MCM, the statistical unit used to represent the majority of businesses, and for which statistics are reported, is the ABN unit. The ABN unit is the business unit which has registered for an ABN, and thus appears on the ATO administered Australian Business Register (ABR). These units are suitable for ABS statistical needs when the business is simple in structure, and are generally referred to as the non-profiled population. In these instances, one ABN equates to one statistical unit.
6 For more significant and diverse businesses where the ABN unit is not suitable for ABS statistical needs, the ABS maintains its own unit structure through direct contact with the business, and the statistical unit used is the TAU. A TAU comprises one or more business entities, sub-entities or branches of a business entity within an Enterprise Group that can report production and employment activities. When a minimum set of data items is available, a TAU is created which covers all the operations within an industry subdivision (and the TAU is classified to the relevant subdivision of the Australian and New Zealand Standard Industrial Classification (ANZSIC)). These units are generally referred to as the profiled population.
Classification of units
7 ANZSIC is used to classify the industry in which the TAU or ABN has productive activity. Further information on this classification can be found in Australian and New Zealand Standard Industrial Classification (ANZSIC), 2006 (Revision 2.0) (cat. no. 1292.0).
8 SISCA provides a framework for dividing the Australian economy into institutional sectors. Further information on this classification can be found in Standard Economic Sector Classifications of Australia (SESCA), 2008 (Version 1.1) (cat. no. 1218.0).
Scope and coverage
9 The scope of the estimates in this publication consists of all employing business entities in the Australian economy, except for:
SISCA 3000 General government
SISCA 6000 Rest of the world
ANZSIC06 Division O Public administration and safety
ANZSIC06 Division P Education and training
ANZSIC06 Groups 624 (Financial asset investing) and 633 (Superannuation funds)
ANZSIC06 Groups 954 (Religious services) and 955 (Civic, professional and other interest group services)
ANZSIC06 Subdivision 96 Private households employing staff
10 The frame for the MCM is a subset of the ABSBR and includes employing businesses only. These are defined as those businesses which register for the ATO's Pay As You Go Withholding (PAYGW) scheme. It is not unusual for some of these 'employing businesses' to have zero employment at various times during the reporting period. The frame is updated quarterly to take account of new businesses, businesses which have ceased employing, changes in employment levels, changes in industry and other general business changes. Businesses which have ceased employing are identified when the ATO cancels their ABN and/or PAYGW registration. In addition, businesses with less than 50 employees, which did not remit under the PAYGW scheme in each of the previous five quarters, are removed from the frame. The estimates in this publication include an allowance for the time it takes a newly registered business to be included in the survey frame.
11 Collection of data included in this release was undertaken based on a random sample of approximately 14,500 businesses via online forms or mail-out questionnaires. The sample was stratified by industry and an employment-based size indicator. All businesses on the ABSBR identified as having 300 or more employees were included in the sample. The 2015-16 MCM was despatched from late October 2016.
12 The sample design of the 2015-16 MCM does not include state or territory as part of stratification design.
13 The reference period for all of the management capabilities items included in the 2015-16 Management Capabilities Module, is during the year ended 30 June 2016.
14 For output purposes, businesses are classified to employment size ranges based on data reported in the survey. For industry output, the classification is drawn from information held about the business on the ABSBR. Innovation status is derived from the information collected from the businesses.
Availability of state/territory outputs
15 As indicated in Explanatory Note 12, the sample is designed to produce efficient estimates for industry and employment size, therefore it does not provide quality estimates for states/territories and these are not available.
Most recent related releases
16 The most recent issues of ABS releases related to the Business Characteristics Survey are:
Selected Characteristics of Australian Business (cat. no 8167.0)
Business Use of Information Technology (cat. no. 8129.0)
Summary of IT Use and Innovation in Australian Business (cat. no. 8166.0)
Innovation in Australian Business (cat. no. 8158.0)
Rounding and other adjustments
17 Estimates of proportions have been calculated using unrounded figures, but are shown in the tables rounded to one tenth of a percentage point. Where figures have been rounded, discrepancies may occur between the sum of the component items and the total. Figures presented in the commentary have been rounded to the whole percentage.
18 The collection and publication of management and organisational capabilities statistics is fully funded by the Department of Industry, Innovation and Science (DIIS).