She Builds & She Thrives: The Influence of Human Capital on SME Financial & Non-Financial Performance
DOI:
https://doi.org/10.24191/ji.v21i2.11462Keywords:
Human Capital, Competencies, Motivation, Creativity, SMEs Performance, Women EntrepreneursAbstract
Women entrepreneurs are making a significant contribution to the country’s economy. To improve the performance of women SMEs, human capital development is very important because it can have a significant impact on an organization. The success of an organization depends on the quality and quantity of its human capital, whether intellectual or personal. The purpose of this study is to examine the influence of human capital dimensions (i.e., competencies, motivation, and creativity) on financial and non-financial performance. A quantitative approach based on online surveys was used in this study. The study sample consisted of 400 SME entrepreneurs aged 18 to 60 years who operated businesses in the Klang Valley. This analysis uses structural equation modelling (SEM). Respondents were selected using purposive, cluster, and snowball sampling methods. Findings show that human capital dimensions have a significant impact on the financial and non-financial performance of women's SMEs. In this regard, the organization needs to prioritize investment in human capital to develop employees with exemplary values. Considering the importance of knowledge as the basis for added value in human development, employers' roles are crucial in nurturing and encouraging employees to continue gaining knowledge to produce successful individuals.
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