Abstract
This paper explores impact of human resources and capabilities on growth of small firms. Human resources and capabilities of the small firm are analyzed from two dimensions: resources and capabilities of owner/manager and labor. Age, gender, education and training, work experience, professional organization membership, having entrepreneurial parents, and responsibilities in other firms are considered as the resources and capabilities of the owner/manager. The human resources and capabilities for the small firm are identified as availability of human resources, recruitment, selection, orientation, training, compensation, appraisal and career management. Regression analysis results show that training and compensation are determinants of sales growth. Owner/managers with entrepreneurial parents, members of professional organizations and additional responsibilities in other firms are important owner/manager’s resources and capabilities for small firm growth.
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