Managers and entrepreneurs skills as key contributors to SME success in the future business challenges

Radović-Marković, Mirjana (2007) Managers and entrepreneurs skills as key contributors to SME success in the future business challenges. Serbian Journal of Management: an International Journal for Theory and Practice of Management Science, 2 (1). pp. 93-99. ISSN 1452-4864

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In order to get a complete picture how educational level of managers and entrepreneurs affect business success, author stresses that it is necessary to determine general personal knowledge and education, then expert knowledge or various specializations in certain areas and lastly to identify their skills. In total, all this is necessary in order, apart from other (provided financial means, location, equipment, partners and business associates market and other), to make a final decision for starting a business and define how to manage it. Many scientists think that knowledge is the most important requirement for business success and therefore it is the factor to which the most attention is being paid to. Recent researches in the USA show that business owners who were not educated enough for the business in which they were engaged, were not successful (80% of their businesses failed during the first year of its existence). On the opposite, those entrepreneurs who were educated and who showed constant interest for improvement have increased their business success for 60% after the completion of the basic training programs for entrepreneurship and management. There fore the author pinted out that the more highly skilled workforce should be beneficial to organizations. Additionally the human capital approach reflects the view that the market value of the firm increasingly depends on intangible rather than tangible resources. The three main components of human capital are described as a) early ability, b) qualifications and knowledge acquired through education and c) skills competencies and expertise through on and off the job training. This would suggest that individual capability is enhanced by greater qualifications and higher skill levels. If this can be accessed and used to good effect in the firm then better human capital should, ceteris paribus, enhance organizational performance. Better organizational performance should, in turn, translate into better national performance.

Item Type: Article
Additional Information: COBISS.ID=512051298
Uncontrolled Keywords: vocational education; entrepreneurial skills; knowledge; manager, entrepreneur
Research Department: Business Economics
Depositing User: Jelena Banovic
Date Deposited: 18 Nov 2016 08:25
Last Modified: 24 Aug 2020 09:09

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