LSO’S AND THE AUSTRALIAN ECONOMY Page 19

CONTRIBUTIONS OF LSO’SDespite there being more small –

medium sized organisations in Australia, LSO’s still significantly contribute to the Australian economy.GDPEmploymentBalance of PaymentsResearch & InnovationInfrastructure Growth

GROSS DOMESTIC PRODUCT (GDP)

The total monetary value of output produced in a country in one year.

EMPLOYMENTLSO’s employ a large percentage

of our total workforce.

GLOSSARYDownsizing – A reduction in a

company’s work force through the elimination of jobs.

Productivity – A measure of the functioning and efficiency of a production system.

Outsourcing – The process of using another business to undertake some task or work process.

BALANCE OF PAYMENTSAn annual record of Australian

trade and financial transactions (export/import) with the rest of the world.

LSO’s assist in earning export income.

RESEARCH AND INNOVATIONA large amount of money (capital

expenditure) is used to carry out research and development (R & D)

LSO’s are often encouraged to undertake this, however due to its expense and high risk, the government has to provide financial incentives in forms of grants or taxation rebates.

Eg. Apprenticeships Australia

INFRASTRUCTURE GROWTH Infrastructure – Physical resources

of an area which benefit the entire community.

Most Australian infrastructure is provided by GBE’s or recently privatised GBE’s.