Micro, small and Medium Enterprises (MSMEs) are one of the most vibrant and sensitive sectors in every economy. The significance of Micro, Small and Medium Enterprises (MSMEs) is attributable to its capacity of employment generation, low capital and technology requirement, use of traditional or inherited skill, use of local resources, mobilization of resources and exportability of products (Rajib, 2012).
Human capital is recognized as the largest and the most important intangible asset in an organization. Ultimately it provides the goods or services that customers require or the solutions to their problems. It includes the collective knowledge, competency, experience, skills and talents of people within an organization. It also includes an organization’s creative capacity and its ability to be innovative. Although investment in human capital is growing, there is still no standard measure of its effectiveness in companies’ balance sheets. Structural capital is the supportive infrastructure for human capital—it is the capital which remains in the factory or office when the employees leave at the end of the day. It includes
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Organizational capacity building is a system-wide, planned effort to increase organizational performance through purposeful reflection, planning, and action. In particular, capacity building looks in depth at where an organization stands in comparison to where it hopes to be in the future, and develops the skills and resources to get there. Thus organizational capacity building is synonymous with organizational learning. The ultimate goal of capacity building is to enable the organization to grow stronger in achieving its purpose and mission. It asks the question, "What kinds of things do we need to do to keep ourselves healthy and vital as an organization?" and provides a variety of techniques to help find the answers (Daniel,
Importantly, human capital therefore is not merely the people – but rather their potential. As a result, human capital is a critical resource for an organization.” (Hitt and Ireland, 2002). Human capital is arguably any organizations most important resource and continually adding value to that resource is critical to success. Whether by training or mentoring programs, this helps ensure that employees continue to grow and learning never stops. Also, when an employee feels that they are being invested in, then they will not only have greater knowledge, but might be more willing to go the extra mile for their company that has invested in them. Human capital is a company’s most unique resource along with the most important, because no two people are exactly the same. This sets people apart and companies apart by the employees they have, train and can ultimately keep, as headhunters are always on the lookout for talent. Evidence of this at BMW is that they provide its associates with training and benefit programs. “BMW doesn’t just hire tomorrow’s talent; we help build it. In addition to on-site training, BMW offers tuition assistance for courses taken by associates at local universities. You’re in the driver’s seat controlling your destiny, and we stand ready to help at each turn. It’s part of a corporate philosophy that includes respect for the individual and dedication to self-improvement.” (BMW Group,
Managers can accomplish more through people by viewing them as self-energized, committed, responsible, and creative human beings. Theory Y Human Capital The productive potential of an individual's knowledge and actions. The Social Capital, Productive potential resulting from strong relationships, goodwill, trust and cooperative effort. Corporate Social Responsibility The notion that corporations have an obligation to constituent groups and society other than stockholders and beyond that prescribed by law are union contract.
In Microeconomics, there are many subjects that gave me interest in investigating to progress in my professional career as an Accountant. For three years and throughout this semester, my studies in Accounting at Dalton State College have given me more interest getting into the business program to get a job as finance accountant. Microeconomics shows which cause a departure from these economic efficiencies and the result in the decline of the social welfare at its maximum level. Economic efficiency involves in three efficiencies; efficiency in production, efficiency in the production of goods among the people, which it is also called efficiency of consumption, and allocative economic efficiency that’s in the direction of production efficiency.
The term “SME” is commonly used to refer to Small and Medium-sized Enterprises. The term covers a variety of definitions as well as measures. However, in most of the various definitions of what is an SME, employment is the most widely used criterion for categorizing the size of the firm. Moreover, SMEs are often defined as businesses with fewer than 500 employees. However, a number of countries, including some in the European Union use a lower cutoff of 250 employees. SMEs are important in the economy because they have some unique benefits to the economy chief among these being employment and job creation, among others. The following discussion explores the impact of SME to the economy, especially in regards to employment and the creation
Although small businesses do not make a lot of major deals with large investors, most small businesses create profit revenue greater than large corporations. Small business creators are very brave considering only ten percent of small businesses survive. Unfortunately, some communities do not support local small businesses; they only support the large brand name and force small businesses to die out. Since small businesses will not have a name brand known around the world, many people from communities will not support them because they are not known on a national scale. “This, in turn will affect the local economy and drive capital out of their local economy. On average, for every one hundred dollars spent in an economy, if spent on a
The leadership of an authoritative figure can create success or lead to failure in an organization. The medium-sized manufacturing company, Microstar Industries, has the ability to be successful and collaborative. But in order to achieve this goal, all departments and employees within the company need to work together cohesively and coherently. The following report will address the following problems determined in the sales departments:
How well a business manages its assets and resources predicates its overall success. Companies that spend financial resources foolishly are apt to find themselves in bankruptcy. Companies that work capital equipment resources beyond the machine’s capabilities or for other than intended purposes are apt to experience downtime and/or lose the equipment to failure. The same premise holds true for a company’s human assets. However, unlike other company assets, which depreciate over time, human assets appreciate over time when managed properly. The article, Importance of Human Resource Investment for Organizations and Economy: A critical Analysis, explains the importance of managing human assets as follows:
Colorado State University-Global Campus. (2013). Module 2 – Strategic management [Blackboard ecourse]. In MGT 570 – Managing Human Resources (pp. 1-6). Greenwood Village, CO: Author.
Iveta, G. (Mar. 2012). Human Resources Key Performance Indicators. Journal of Competitiveness. Vol. 4, Issue 1. Retrieved from http://www.cjournal.cz/files/89.pdf
Growth in the small and medium business in Canada and other developed countries has been very significant. This sector of the business community now represents about 40 percent of GDP and accounts more than half of total employment. Today small businesses are more diverse and more vigorous than ever, but they also faces newer and more challenges or inhibitors to their growth than their older conter parts. This research will attempt to find the answer to the following hypothetical question:
Within every major economy, a great factor in providing the energy of the core of the nations economy is the small and medium enterprises. These cluster of firms are what provide new economic activity, new innovative products and services, along with growing employment and in general a crucial system in ensuring the economy is at a stable growth level. With a majority of this activity stemming from family controlled or managed businesses, the focus on developing a global and long term perspective for these firms are ever growing in importance because of the global perspective entrepreneurship has started to take.
Nowadays, entrepreneurship becomes most popular career, where our government encourages our graduated student to involve in business so that unemployment will not happen in our country. Policymakers, academics, and researcher agree that entrepreneurship is a vital route to economic advancement for both developed and developing economics (Zelealem et al., 2004). Entrepreneurship has many types for example small business and others. Today small business, particularly the new ones, is the main vehicle for entrepreneurship, contributing not just to employment, social and political stability, but also to innovation and competitive power (Thurik & Wennekers, 2004).
Shaw, E. (1997), “The real networks of small firms”, in Deakins, D., Jennings, P. and Mason, C, (Eds), Small Firms: Entrepreneurship in the Nineties, Paul Chapman Publishing, London.
In India, the small-scale industrial sector has been a key contributor to the Gross Domestic Product (GDP). This sector in India is measured to have a huge growth panorama with its wide range of products. With 40% contribution in total industrial output and 35% contribution towards exports, the small-scale industrial sector in India is performing as the engine of expansion.
According to Slack et. al. (2001) the best mechanism for running a business is to match level of demand (goods, services that customers need) with supply of capacity (recourses, labor force that the business inputs in the production process). They also define capacity as “the maximum level of value –added activity over a period of time”. Thus three main factors come into force here – the capacity of resources and labor force, the process operation which itself leads to satisfying customers through matching demand. It is very important to plan and coordinate all 3 factors very effectively because a difference in capacity and performance easily affects: costs, revenues, working capital, flexibility, quality of goods, speed of response and others.