The Impact Of Human Capital And Human Resources On Competitiveness In Small Enterprises

Abstract

This study explores the critical role of human capital and human resource management (HRM) in enhancing the competitiveness of small enterprises. In a rapidly evolving business environment, small firms often face significant constraints in terms of financial, technological, and infrastructural resources. However, their ability to leverage skilled, motivated, and adaptable human capital can serve as a sustainable competitive advantage. Through an in-depth examination of key HRM practices such as recruitment, training, employee engagement, and workplace culture, the study demonstrates how human-centered strategies contribute to innovation, agility, and business performance. A table and graph are included to visualize the most influential human capital factors. The findings highlight that investing in employee development and implementing strategic HR policies not only improves internal processes but also boosts long-term competitiveness. The research underscores the necessity for small enterprises to treat human resources as a strategic asset rather than an operational cost.