The small business sector has become an increasingly important segment of the Australian economy since the 1970s. Industrial relations in the sector have been assumed to be harmonious. However, to a large extent this belief about industrial relations is based on conventional wisdom rather empirical evidence. Industrial relations research in Australia has concentrated on medium to large businesses because the centralised nature of the industrial relations system encouraged a collective emphasis. This collective emphasis ensured peak representative bodies and larger organisations had a tendency to dominate while small enterprises and their employees were, to a large extent, excluded. The perceived non-problematic nature of industrial relations in the small business sector was another reason for the lack of focus on the sector. The low incidence of strike activity and the low levels of trade union membership have meant research has been concentrated on the more "difficult" areas of industrial relations. The lack of empirical research into industrial relations in the sector is an important shortcoming. There are a number of commentators who suggest that it is too simplistic to assume harmonious relations. It is likely that there is a range of industrial relations in small business, depending on a number of variables including the personality of the owner/manager and employees, the type of business and the current economic climate. The legislative framework will also have an important affect on industrial relations. This study addresses the lack of empirical research in industrial relations in the small business sector by examining the differences between small and large registered clubs in NSW. Registered clubs have an unusual ownership structure and unusual business goals. They are also unusual since they are non-profit organisations formed by groups of people who share a common interest and who have come together to pursue or promote that interest. Registered clubs are governed by a board of directors who are responsible for the formulation of policy and for ensuring that management carries out these policies. This study found that there were significant differences in regards to some aspects of employment relations. For example, small clubs were more likely to have lower rates of unionisation than large clubs. They were also likely to have lower levels of informal bargaining than large clubs. The methods of communication within the workplace were likely to be more informal in small clubs and they were less likely to have communications with a trade union. Despite this greater degree of informality in employment relations, small clubs were more likely to use award provisions to determine wages for their managers and employees. Interestingly, despite the lower level of unionisation and the greater use of awards by smaller clubs there were no significant differences between small and large club managers' perception of the impact of awards and trade unions on club flexibility. The findings from this study suggest the deregulation of the Australian industrial relations system may not have any significant benefits for small business.