The Practice of Human Resource Management by Very Small Business Entrepreneurs

Abstract

This paper explores the nature of entrepreneurship in the United States and provides a basic definition and examples. It explores how HRM is practiced by very small business entrepreneurs. The central question underlying this research is what HRM practices help initiate and sustain entrepreneurship. Three questions are examined including the extent to which 17 HRM practices are outsourced or performed internally. How these entrepreneurs obtain their knowledge of HRM is also explored. Finally, the percentage of time entrepreneurs invest in HRM activities is addressed. It was found that very small business entrepreneurs perform most HRM activities in-house. They are self-taught in HRM-related matters and spend approximately 15% of their time engaged in human resource activities. Implications for how HRM can contribute to the success of entrepreneurial firms are discussed. JEL: M550 The creation of the English-language version of these publications is fi nanced in the framework of contract No. 607/P-DUN/2018 by the Ministry of Science and Higher Education committed to activities aimed at the promotion of education.

Keywords

• entrepreneurship
• human resources knowledge
• human resource management
• outsourcing
• very small business entrepreneurs