Impact of Human Resources and Capabilities on the Growth of Small Firms: Evidence from Nigeria

This study was empirically conducted to analyze the impact of human resource practices and capabilities on the growth of small firms. A sample of 197 responses from small firm„s owner/managers in Nigeria were analyzed with the aid of SPSS. Correlation analysis findings show that human resource practices of training and compensation have positive impact on sales growth of small firms and also have negative relationship with intention to leave which in turn have a negative relationship with sales growth. Therefore, training and compensation practices of small firms have positive relationship with growth of small firms and also have negative impact on employee turnover that is prevalent in small firms. Similarly, capabilities of owner/managers of small firms were also examined and it was found out to have significant impact on small firm growth. Management training, entrepreneurial role model and membership of professional association were found out to have significant effect on small firm growth. Findings, recommendation, limitation and future research suggestions were also discussed.