Human capital and entrepreneurial success : a meta-analytical review

The study meta-analytically integrates results from three decades of human capital research in entrepreneurship. Based on 70 independent samples (N = 24,733), we found a significant but small relationship between human capital and success (r(c) = .098). We examined theoretically derived moderators of this relationship referring to conceptualizations of human capital, to context, and to measurement of success. The relationship was higher for outcomes of human capital investments (knowledge/skills) than for human capital investments (education/experience), for human capital with high task-relatedness compared to low task-relatedness, for young businesses compared to old businesses, and for the dependent variable size compared to growth or profitability. Findings are relevant for practitioners (lenders, policy makers, educators) and for future research. Our findings show that future research should pursue moderator approaches to study the effects of human capital on success. Further, human capital is most important if it is task-related and if it consists of outcomes of human capital investments rather than human capital investments; this suggests that research should overcome a static view of human capital and should rather investigate the processes of learning, knowledge acquisition, and the transfer of knowledge to entrepreneurial tasks

Knowledge acquisition by SMEs in weak client-firm exchange relationships

This thesis examines the role that non-collaborative, weak exchange relationships might play in the acquisition of knowledge by small and medium-sized enterprises (SMEs). An important source of knowledge for a firm lies in its network of relationships. There has been considerable research conducted on knowledge transfer and acquisition through linkages, such as strategic alliances and similar-type, close collaborations with other businesses. However, many SMEs are less likely to be involved in collaborative, close interfirm relationships because of their relatively small market share, short industry time and uncertainty associated with the firm's future. Consequently, much of the research on interfirm relationships has overlooked SMEs. Many SME linkages are the non-collaborative, arm's-length type that many researchers argue play very little or no role in knowledge transfer and acquisition. However, research has found that inter-firm relationships that are not close and less collaborative are a source of new external knowledge.This doctoral study researches the value of weak, arm's-length client ties to the SME in terms of the knowledge they could impart to the firm. The extent to which this acquired knowledge leads to knowledge-related outcomes, such as new product and market development, increased operating efficiency and innovative performance, are also examined. Factors posited to lead to knowledge acquisition in these weak exchange ties include the SME owner's efforts at building more long-term relationships and efforts at signalling the SME's reputation and legitimacy. Also posited to lead to knowledge acquisition is the trust of the arm's-length client. The study also examines factors posited to contribute to the knowledge-based outcomes derived from the knowledge acquisition. The factors include absorptive capacity and exchange partner similarity and are hypothesized to moderate the relationship between knowledge acquisition and knowledge outcomes. Other moderating factors include the size and age of the client firm and the growth intentions of the SME owner.To conduct this research, a cross-section of Western Australian SMEs was surveyed through the WA Small Business Benchmark Survey undertaken by Curtin's School of Management. A paper-based version of the survey was administered to a Dan & Bradstreet database of 10,000 small and medium-sized enterprises. Additionally, an on-line version of the survey was also sent to SMEs via a range of small business associations across Western Australia. Low response rates are common in SME research and this study is no exception. Just over 400 businesses responded to the survey, of which 298 respondents completed the survey questions pertaining to the thesis study.A model explaining the interrelationships of factors and paths leading to knowledge acquisition and knowledge outcomes was analysed. Exploratory and confirmatory analyses of the data were carried out and structural equation analysis examined the fit of the model to the data. Based on the results, the measure of the relationship strength of the client-firm tie could not be verified. However, it was found that trust of the client in exchange relationships led to knowledge acquisition but reputation signalling and relationship initiation seemed more related to marketing efforts and did not contribute significantly to knowledge acquisition. Knowledge acquisition was significantly associated with knowledge-based outcomes and absorptive capacity, as well as exchange partner similarity, which partly moderated the extent to which knowledge based outcomes were derived from acquired knowledge. The growth intentions of the SME owner could not be verified as a moderator and the size of the client firm was not found to have a moderating effect. The findings are tempered by the small sample size and the low response rate so generalising these findings to the broader WA SME population would be inappropriate. However, the study did reveal the relative importance of absorptive capacity and exchange partner similarity in the conversion of acquired knowledge to knowledge-based outcomes. These findings encourage further research and more analyses to verify the role of absorptive capacity and exchange partner similarity in client-firm exchange relationships

Opportunities to participate in formal and informal vocational learning activities and work-related outcomes in small professional services businesses

Small businesses are characterised by resources constraints; therefore, their managers need to know the exact nature of additional benefits, beyond knowledge and skill acquisition, that might accrue from employee participation in different types of learning activities. However, research that simultaneously examines the attitudinal and behavioural outcomes of opportunities to participate in formal and informal learning activities is sparse, especially in small businesses. The present study addresses this area of neglect by exploring associative relationships between opportunities for employees to participate in (1) formal learning activities and (2) informal learning activities and three important work-related outcomes: affective commitment, innovative behaviours, and work engagement. Data from 203 respondents in small professional services businesses were analysed and the results provide preliminary evidence that opportunities to participate in each type of learning activity are associated with differing outcomes. Opportunities to participate in formal learning activities were positively associated with heightened levels of affective commitment, work engagement, and innovative behaviours, while opportunities to participate in informal learning activities were positively related to work engagement. We provide suggestions for future research and outline practical implications of our analysis. © 2019, © 2019 The Vocational Aspect of Education Ltd

THE OPERATIONS OF SAVINGS AND LOANS AND THE PERFORMANCES OF BUSINESSES IN ACCRA

Savings and Loans operations in Ghana represent significant development and performance of most businesses and therefore maintaining these Savings and Loans operations is important. However, there seems to be paucity of studies on the operations of savings and loans companies’ effects on the performances of businesses in general and Greater Accra in particular. This research seeks to bridge this knowledge gap by analyzing the operations of savings and loans companies’ effects on the performances of businesses in the Greater Accra Region of Ghana. The study will be guided by three research objectives. Study methods include the use of questionnaire for data analysis. A total of 40 respondents (20 staff of Savings and Loans companies and twenty (20) small business operators (men and women) who took part in this study were randomly purposively selected. The results indicate that small businesses in Accra township sourced start-up capital from savings and loans companies, personal savings and support from friends and families. It also emerged from the study that the business operators that were unable to receive entire amount requested from the financial institutions attributed it to failure to meet the credit requirements, failure to provide the required collateral security and the absence of active account with the financial institutions. Again the study found that credit received by the business operators in Accra township was utilized for the expansion of business. The study further found that business operators in Accra township are confronted with several challenges in accessing credit facilities from Savings and Loans Companies. These challenges include bureaucracy, lack of opportunity to take second loan, high risk and uncertainty, high level of interest rate on credit, low level of knowledge about credit sourcing and shorter repayment period. It is recommended that to enhance small and medium business operators in Accra township access and acquisition of credit facilities from Savings and Loans companies should be efficiently utilized. Keywords: Operations, Savings and Loans, Performance, Businesses, Accra

Small Business Marketing Strategies for the First 5 Years

Small businesses have an integral role in the U.S. economy and represent 99.7% of all employers in the United States; however, approximately 50% of small business start-ups fail within the first 5 years. Developing and implementing a well-formulated marketing strategy is critical to the success of business because a marketing strategy provides long-term benefits for a company\u27s financial performance and increases the survival rate. The objective of this case study was to explore the marketing strategies that small retail business owners use to sustain their businesses for the first 5 years. The population was 5 successful retail-based small business owners in New York and New Jersey who had developed a well-formulated marketing strategy and sustained their start-ups for the first 5 years. The conceptual framework built upon Porter\u27s competitive strategy theory. Data collection involved semistructured, face-to-face interviews and a review of company marketing documents. Data analysis involved coding and populating the data in software. Thematic analysis and methodological triangulation of the data revealed several themes: online marketing, marketing knowledge and planning, market research, and customer acquisition and retention. The findings of this study contribute to social change through the potential to improve economic activity, create stability in the local economy, and decrease small business failure rates by using marketing strategies effectively. Application of the findings could also lead to increased employment in communities where small businesses are located to improve the standard of living of local residents and contribute to effective positive social chang

Micro enterprises, self-efficacy and knowledge acquisition: evidence from Greece and Spain

Purpose: The purpose of this exploratory study is to investigate the significance of self-efficacy and knowledge acquisition among micro businesses operating in challenging economic environments. The study uses social cognitive theory (SCT) and the knowledge-based theory of the firm (KBTF), and it proposes a refinement of these theoretical frameworks in the context of the study. Design/methodology/approach: A case method was chosen, and face-to-face interviews with 14 owners of firms in island and rural regions of Greece and Spain were conducted. Findings: Content analysis identified the importance of self-efficacy, primarily illustrated by entrepreneurs’ determination and self-motivation, propensity to take risks and ability to anticipate consequences of their actions. Acquisition and accumulation of explicit knowledge, particularly through generational or mentoring processes, and subsequent wealth of tacit knowledge, also emerged as very significant in preparing and guiding entrepreneurs. Various links between the adopted theories and findings emerged, particularly regarding forethought, vicarious learning (SCT) and specialisation in knowledge acquisition (KBTF). Originality/value: The proposed theoretical refinement based on the SCT and KBTF paradigms allows for a more rigorous, in-depth reflection on the links between cognitive elements present in the participating micro entrepreneurs and knowledge-based attributes on their ability to increase organisational resilience. The study also contributes toward the micro business literature and addresses a knowledge gap, particularly, in that contemporary research has not explored entrepreneurial motivations among small firm entrepreneurs. Finally, the practical implications emerging from the findings provide a platform for various stakeholders (associations, government agencies) to appreciate and support entrepreneurs’ needs, notably, of acquiring, increasing and sharing knowledge. © 2018, Emerald Publishing Limited

Role of Strong versus Weak Networks in Small Business Growth in an Emerging Economy

The study tests whether strong rather than weak ties account for small business growth in Turkey. Data were collected by means of a questionnaire filled out by the owners of small firms operating in four cities. Growth is comprised of two main areas, production expansion and knowledge acquisition. Results show that strong ties are positively related to both types of growth. In contrast, loose ties have no effect on small business growth in either area. This finding is attributed to the influence of the collectivistic nature of the mainstream Turkish culture, where owners of small businesses are likely to rely on in-groups rather than out-groups for advice and for financial support. Implications of relative absence of weak ties for small business growth and innovation in emerging economies are discussed. The findings suggest that culture should be included as a contingency variable in future studies of network strength and growth relationship. The paper also discusses the possible moderating role of affective and cognition-based trust in the relation of strong and weak ties to small business growth

Role of Strong versus Weak Networks in Small Business Growth in an Emerging Economy

Cataloged from PDF version of article.The study tests whether strong rather than weak ties account for small business growth in Turkey. Data were collected by means of a questionnaire filled out by the owners of small firms operating in four cities. Growth is comprised of two main areas, production expansion and knowledge acquisition. Results show that strong ties are positively related to both types of growth. In contrast, loose ties have no effect on small business growth in either area. This finding is attributed to the influence of the collectivistic nature of the mainstream Turkish culture, where owners of small businesses are likely to rely on in-groups rather than out-groups for advice and for financial support. Implications of relative absence of weak ties for small business growth and innovation in emerging economies are discussed. The findings suggest that culture should be included as a contingency variable in future studies of network strength and growth relationship. The paper also discusses the possible moderating role of affective and cognition-based trust in the relation of strong and weak ties to small business growth

High Growth Firms in Scotland

High growth firms (HGFs) are widely thought to be a key force driving economic growth in modern advanced economies (Acs et al, 2008; BERR, 2008; Henrekson and Johansson, 2010). One of the central aims of the current economic strategy of the Scottish Government is to provide responsive and focused enterprise support to increase the number of highly successful, competitive businesses (Scottish Government, 2007). Hence, for the past decade there have been a number of policy initiatives designed to stimulate high growth entrepreneurship in Scotland. Many of these policies have had a strong technology focus. Given the importance these firms have for a region’s economic growth potential and the policy attention they are beginning to receive, it was felt to be important that Scottish Enterprise develops a deeper understanding of these important generators of wealth creation in the Scottish economy. This report examines HGFs in Scotland from both quantitative and qualitative perspectives

Determinants of technology adoption in the retail trade industry - the case of SMEs in Spain

This paper analyzes the determinants of small and medium-sized enterprises’ technology adoption in the retail trade industry. From the theoretical perspective, two types of influential factors are differentiated in this respect: the personal characteristics of the manager/business owner and the business’s organizational characteristics. The empirical analysis is based on a survey of 268 small and medium-sized enterprises in the Spanish retail trade sector. A logistic regression specification is used as an econometric method. The results indicate that both the acquisition of new technical and electronic equipment and the obtaining of new software are affected by the two types of determinants previously pointed out. The manager/business owner’s entrepreneurial motivation and educational background have significant influences on technology adoption in this type of companies. Furthermore, being part of a business group, carrying out training activities for the employees and inter-firm cooperation also positively influence technology adoption in the retail trade industry