Micro enterprises, businesses with five or fewer employees, represent about 75% of all small business, and are often the starting point for successful firms. Why then is there a paucity of research on human resource practices in small businesses? Micro businesses are almost ignored in studies regarding human resources in business. Researchers have assumed that all small firms have the same human resource practices; however, we know this is not the case. What impact does Human Resources Management have on small businesses? Human resource shortages can negatively impact business growth in the areas of high tech employees, sales staff, and professional workers. This study explored key human resource practices in micro businesses, especially on the relationship between sales, benefits, training opportunities and hiring expectations within micro enterprises. Our findings on human resources management showed that only 25% of responding micro entrepreneurs provided paid vacations, 12.9% offered health benefits, and 10% offered some type of retirement plan. Also, organizations with higher sales provided more benefits and training opportunities than other micro businesses.
Mattare, Martha; Shah, Amit J.; and Monahan, Michael
"Human Resource Management in Microenterprises: Gateway for Success,"
The Coastal Business Journal: Vol. 12:
1, Article 2.
Available at: https://digitalcommons.coastal.edu/cbj/vol12/iss1/2
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