Posts Tagged ‘financial’

by bisgovuk

Human Resources, Financial Resources and Performance in Small Business

Westhead, Wright and Usbasaran (2001) suggested that human and financial resources are those that need to be incorporated into the research model, which they had constructed.

The small business’ entrepreneur/owner is to be emphasized as a resource of paramount importance. According to Story (1994), the entrepreneur’s experience, expertise and abilities are generally considered a primary parameter of influence over the firm’s survival and development. Mullins (1996) claims that the entrepreneur’s decision-making capacity strongly affects organizational processes that constitute the foundation for competitive advantage as well as for growth. Rangone (1999) has defined the entrepreneur as a “unique” resource which supports the rest of the resources.

Several studies were conducted in order to learn about the relationship between human or financial resources and small business performance. Cooper, Gimeno-Gascon and Woo (1994) have found that human resources, and especially the owner’s education, are correlated with growth. Moreover, knowledge of the industry and financial resources contribute to growth as well as to the firm’s survival. According to Westhead (1995), the founder’s experience affected performance and survival in hi-tech enterprises over a period of six years from the day of foundation. Brush and Chaganti (1999) examined small trade and service oriented businesses. Their study designates two dimensions of human resources – owner resources and owner commitment. A significant positive correlation was found between the two dimensions and net cash flow. No correlation has been found to the log of employment growth. Westhead et al. (2001) findings support the hypothesis that, if the firm’s founder possesses a significant prior knowledge of the industry, it is to be expected that the firm would register profitability beyond the means of its competitors. Premaratne (2001) indicates at a correlation between subsidies granted to the firm and increase in sales. However, he does not support a correlation between subsidies and profitability. Wiklund and Shepherd (2005) have found a significant positive correlation between access to capital and performance. Pena (2004) examined the relationship between human resources (education; management experience; prior entrepreneurial experience; entrepreneurs’ relatives; implementation of ideas acquired in previous workplaces) and increase in profit, increase in sales and increase in the number of employees. A positive correlation was found between education and the implementation of ideas acquired in previous workplaces, and an increase in the number of employees and in sales. Chrisman, Mcmullan and Hall (2005) utilized education and prior experience as control variables. A correlation was found between prior experience and an increase in the number of employees and in sales. No such correlation with education was found.

Related Human Resources Articles

by Steamtalks

Human Resources, Financial Resources and Performance in Small Business

Westhead, Wright and Usbasaran (2001) suggested that human and financial resources are those that need to be incorporated into the research model, which they had constructed.

The small business’ entrepreneur/owner is to be emphasized as a resource of paramount importance. According to Story (1994), the entrepreneur’s experience, expertise and abilities are generally considered a primary parameter of influence over the firm’s survival and development. Mullins (1996) claims that the entrepreneur’s decision-making capacity strongly affects organizational processes that constitute the foundation for competitive advantage as well as for growth. Rangone (1999) has defined the entrepreneur as a “unique” resource which supports the rest of the resources.

Several studies were conducted in order to learn about the relationship between human or financial resources and small business performance. Cooper, Gimeno-Gascon and Woo (1994) have found that human resources, and especially the owner’s education, are correlated with growth. Moreover, knowledge of the industry and financial resources contribute to growth as well as to the firm’s survival. According to Westhead (1995), the founder’s experience affected performance and survival in hi-tech enterprises over a period of six years from the day of foundation. Brush and Chaganti (1999) examined small trade and service oriented businesses. Their study designates two dimensions of human resources – owner resources and owner commitment. A significant positive correlation was found between the two dimensions and net cash flow. No correlation has been found to the log of employment growth. Westhead et al. (2001) findings support the hypothesis that, if the firm’s founder possesses a significant prior knowledge of the industry, it is to be expected that the firm would register profitability beyond the means of its competitors. Premaratne (2001) indicates at a correlation between subsidies granted to the firm and increase in sales. However, he does not support a correlation between subsidies and profitability. Wiklund and Shepherd (2005) have found a significant positive correlation between access to capital and performance. Pena (2004) examined the relationship between human resources (education; management experience; prior entrepreneurial experience; entrepreneurs’ relatives; implementation of ideas acquired in previous workplaces) and increase in profit, increase in sales and increase in the number of employees. A positive correlation was found between education and the implementation of ideas acquired in previous workplaces, and an increase in the number of employees and in sales. Chrisman, Mcmullan and Hall (2005) utilized education and prior experience as control variables. A correlation was found between prior experience and an increase in the number of employees and in sales. No such correlation with education was found.

Related Human Resources Articles

what is financial plan?,what ia marketing plan? how would good financial and marketing plas set the framework for effective imolementation and control?
how can a good financial plan set the framework for effective implementation and control.

I have a friend that is a registered financial adviser that wants to join my network marketing team. Is there anything preventing him from joining?

These are the majors offered by the finance department of my university.
I would like to know the differences between the three as far as job , income and what they actually do. Your answers will greatly help.

It is like taking a car to an automechanic, I don’t really know what is going on under the hood so I just have to take his advice on what he wants to do to the car.
It is the same with finances, how do I know the mortgage broker (who wants my money) is going to tell me what is best for me? I read articles and books but they never answer the questions I have or I am simply not able to figure out how to apply the information to my situation.

I want to make a fairly substantial financial investment, but want to do it in a “smart” way. I want to go with the best choice, for me , that I can possibly find and want to make sure that I make a “safe” choice. There are so many “financial counsellors” out there now that I’m a little scared. I want a “top rated” one in all aspects & need some advice on how to go about finding the right one and weighing all my odds before I make this big switch. I currently have it invested with a private counsellor, but am not happy with the situation I’m in right now.
I’m paying substantial fees for the work his company does, & I’m not very satisfied in general. There is no “binding” agreement with them & the way I understand it I’m free to choose another company at any time.

In case it makes any difference, I am a widow & don’t have a very knowledgable background in financial investing.

What is the difference between Corporate finance major and a Financial Services major? And which one has more job opportunities? Can anyone explain it to me? Thanks!

I need to compare and compute the following ratios from financial statements, and I would appreciate any help from anyone that is experienced in financial management. It is very important that I can get a better understanding in this area in order to pass this course, since as of right now I am having a very hard time understanding what is required of me. Thank you.

I have been called by Financial Management Consultants. They told me they could give me a loan but I would have to buy insurance in the amount of $760.00. I would get this back after I had made 3 months of payments. The Private Lender is asking for this amount of insurance. The reason being because I am such a high risk. Has anyone heard of these people? I saw on the computer a rating for some financial people but unable to find it now. Could someone please help me locate some information on these people? They are on the east coast because of the time difference between me and them.