Microenterprise allows NDIS participants to become their own boss by starting a small business (1-4 employees) based on their skills and interests. NDIS funding can support business planning, skill development, equipment purchase, and ongoing mentorship. While microenterprises offer flexibility, independence, and the opportunity to monetise passions, they require commitment, leadership skills, and the ability to handle business responsibilities like record-keeping and administration.
Microenterprise is one alternative to traditional employment. It allows individuals to be their own boss, choose their work, control their hours, and set their own pay rates.
The National Disability Insurance Scheme (NDIS) believe that microenterprises can be a rewarding pathway to enter employment. NDIS funding can be used to assist in managing and growing a microenterprise.
Some aspects NDIS funding can help with are:
- Analysing and exploring interests and business ideas.
- Growing and writing business and marketing plans.
- Developing necessary skills through training.
- Acquiring equipment or technology that might assist in the microenterprise.
- Ongoing mentorship to support the foundation or maintenance of the business.
What is a Microenterprise?
In Australia, a microenterprise, which is also referred to as a microbusiness, does not have a strict definition. However, it is generally considered to be a small business with 1-4 employees, as defined by the Australian Bureau of Statistics.
Microenterprises can take many forms. They could sell a service or product and be based online or offline. Some broad categories of microenterprises include:
- Freelancers.
- Startup businesses.
- Ecommerce businesses.
- Independent contractors.
- Independent, local retailers.
- Street vendors.
Some examples of microenterprises could be:
- YouTube and TikTok channels.
- Craft stalls.
- Dog-walking services.
- Baking.
- Social media marketing services.
- Landscape gardening.
- Handmade jewellery.
The Benefits of Creating a Microenterprise
There are a wide variety of benefits that come from starting your own microenterprise.
One great aspect of microenterprise is that you are not employed by others. This means that you can work at your own pace and choose your own working hours. You are essentially your own boss, and you will make all the decisions about how to run the business.
You can also choose the type of work you want to do. This could mean monetising passions or activities you already do, such as becoming a freelance artist or home baker. You could also wish to try something new. Whatever you choose, having a microenterprise can give you a great sense of personal fulfilment and build your confidence.
Since you make all the decisions about your microenterprise, you can choose how quickly you scale and grow your business.
This is ideal for those with fluctuating health or dynamic disabilities where you may not be able to work some days. You can work as much or as little as you like, fitting around your capabilities and circumstances.
In addition to utilising your existing skills, having a microenterprise can naturally encourage real-world skill development. Common skills developed include better communication, customer service, budgeting, problem solving and resilience.
Having a microenterprise can implicitly push you outside of your comfort zone from a social point of view. Most businesses require interaction with potential and existing customers. The need to advertise your business can encourage you to participate in the wider community and social networks.
How NDIS Funding can Support Your Business
If you are thinking about launching a microenterprise, you can seek out mentorship and guidance using your NDIS funding.
Using a mentor service can help you figure out if your business is viable and the steps to making it work. By leveraging the mentor’s experience, you can learn the best way forward while taking minimal risks financially.
The best thing about choosing to use a mentor is that all guidance is tailored to your business and abilities. Your mentor will help equip you with the resources and information you need to set realistic goals and make important decisions about your business.
What Does Microenterprise Support Look Like?
When you are receiving microenterprise support, your mentor will work with you at every phase of the project. This will start with idea inception before going on to planning, execution and ongoing support.
The first stage of making a viable business is considering your strengths. To do this, the mentor will establish what you are passionate about and what kind of activities you could make a business out of.
This will enable you to develop a shortlist of ideas based on your lifestyle and goals. You will also discuss what kind of support you will need from the mentor.
Once you’ve narrowed down your ideas to the one you wish to move forward with, your mentor will help you consider the viability of your business idea. This will include considering how realistic and marketable your idea is. They will also explore:
- Branding and marketing.
- Service and product development.
- Pricing and costing.
- Safety and legal considerations.
- Whether you need equipment or additional training.
This step will likely take several sessions to fully cover. If you meet any challenges, the mentor will use their skills and business network to help you find a solution.
Once you have considered all the steps, it’s time to execute your idea. Along with your mentor, you will start with a small-scale test of your business. This could be a single product or service or selling at one event, whatever would work best as a low-cost and low-risk option.
If this is successful, your mentor will help you scale up your business slowly by offering ongoing advice and support.
Once your business is on its feet, your mentor will continue to have regular check-ins, where your skills will be further developed and you will receive marketing assistance and business troubleshooting.
Is a Microenterprise the Right Path for You?
Whether running a microenterprise would be right for you depends on your goals and determination.
The first thing to consider is whether you feel you have the independence and leadership skills to run your own business. It takes time and energy to run a microenterprise, and it is a long-term commitment which some may find off-putting. Running your own business will place certain pressures upon you, which is not suitable for everyone.
There may also be costs and investments involved in running a microenterprise, although your mentor will advise you on how to do this safely.
You may also need to complete administrative tasks such as record-keeping, insurance administration and registrations. If this does not appeal or it is beyond your capacity, microenterprises may not suit you.
Good Company Disability Service Offers Microenterprise Support
At Good Company Disability Service, we offer microenterprise support as a NDIS support. As an unregistered support provider, we can offer these services to those on a self-managed or plan-managed plan. We can help your business idea become a reality through our NDIS mentoring services.
Our team provides comprehensive support to disability employment services in Perth and Melbourne, helping participants explore innovative pathways to employment including microenterprises.
If you’d like to explore how we could help you, contact our Perth or Melbourne branch by phone, email he***@***************om.au or use the form on our Contact page.
Frequently Asked Questions
How much NDIS funding do I need to start a microenterprise?
The amount varies significantly depending on your business type and needs. Mentorship and planning support might cost $50-150 per hour, while equipment or technology needs vary widely. During your NDIS planning meeting, discuss your microenterprise goals with your planner to ensure adequate funding under the ‘Finding and Keeping a Job’ capacity building category. Start small and scale gradually to minimise upfront costs.
Do I need to register my microenterprise as a business?
This depends on your income and business structure. If you’re earning below the tax-free threshold and operating casually, registration may not be immediately necessary. However, once you earn over $75,000 annually, you’ll need to register for GST. It’s advisable to consult with an accountant or business advisor (which can be funded through NDIS) to understand your obligations regarding ABN registration, tax, and insurance.
Can I receive Disability Support Pension (DSP) while running a microenterprise?
Yes, but there are income limits. You can earn income from your microenterprise while receiving DSP, but once your income exceeds certain thresholds, your pension may be reduced or cancelled. It’s important to report your business income to Services Australia and understand how it affects your payments. Many participants start small to test their business while maintaining their pension.
External Resource: For more information about microenterprise and self-employment options, visit the NDIS website on Finding and Keeping a Job.
