HUMAN CAPITAL AND ITS ROLE IN DEVELOPING COUNTRIES

4 Findings

4.1 Overview

Human capital is the main important part of any nation. Irrespective of what industry or business one is working in, human force is the make or break factor. But it is not the same all over the world. A lot of countries are enjoying their labor force which is creating a huge difference in their economy (Hanushek, 2013). Most of them belong in the developed country criteria. But there are a lot of developing countries who may or may not enjoy this facility. In this research study, we will discuss human capital and the role they play in the developing countries. This is necessary because every nation has human labor force but how well do they use them is the big question. A lot needs to be done to get this question answered. The major questions that were highlighted in this research study included the impact that the human capital had in the development and sustenance of entrepreneurial strategies. This is important as for a business to grow strategies need to be prepared and implemented (Budhwar and Debrah, 2013). Along with that innovation is the thing that makes a huge difference in the organizations making them a success or a failure.

The relationship that human capital has with the success or failure of various businesses in the developing countries is very close. One can see that despite having so much labor force a lot of countries and companies are still not as successful as other companies. This is because the problem lies in the training and skill set of the labor force (Pugh, 2013). To understand the situation better, the relationship between both of them was studied in depth with the opinion of others. This is the reason that the impact that the human capital has on the economic development of the U.S. is way different from that it has on China. The reason for this question being a part of the questionnaire is because it will give us an insight on the various factors that play a role in shaping up the economy of a nation irrespective of its size (Van den Berg, 2016). Also, it will help us find the reasons that if altered in the right way can be useful in the development plan of any economy, no matter whether it’s a developed or a developing country.

To get detailed, precise information about the research questions and the factors associated with them, this research study was composed. As the sample size is people who are an expert when it comes to the human capital along with the economic market, it was necessary to use a technique that could apply to both (Naudé, 2014). The major trends when it comes to all the data and information consist of people who are very good at what they do and can be helpful in providing the relation between human capital and entrepreneurship when it comes to developing country. Along with that, they will help us understand the relation of the labor-capital regarding both U.S. and China which are a huge part of the research study. This includes all the ways that could have played a role in collecting the data. After gathering all the relevant data and information for the research project, it was very important to set them according to some key theme or trend so that one can evaluate them to draw some conclusion out of them (Artuç.et.al.2015). The main theme would be based on all the factors that they think link the human capital along the economic development that causes a difference in the developing nations.

A very important part of conducting any research is to gather all the relevant data and information that can be helpful for the research process. This makes the work of the researcher easy as they get an understanding of the research and what it will be about. A lot of research has already been done regarding human capital and the role that they play when it comes to developing countries (Dunne, 2015). But when talked about all the major research objectives, not much could be found out that help the researcher arrives at some solid conclusion. This made the researcher opt for the primary method of data collection. This was done in the form of qualitative research data type. In this data type, various questions were prepared that helped us linked the research topic with the information that we wanted to acquire. The reason for choosing all this is because a qualitative research design will help the researcher interact with the respondent to get a clear understanding of the reasoning (Whalley and Zhao, 2013). This will help in gathering the data and information that affects the human capital in the developing countries.

The result that one can see after implementing the primary source of information regarding the qualitative research design is that it helped the researcher have a one on one talk with the participants (Fukuda-Parr and Lopes, 2013). This made him realize what the actual factors are and what the ways they affect the countries are. This would not have been possible if an online interview or a quantitative research design had been used. Another result of implementing this research design is that the research could mold the question as per the need and requirement of the project. The interview was mostly to gather as much information as possible. This is the best way to get that. An email survey or questionnaire would have been not as useful in this area as everything is just a multiple choice question or a short answer thing which does not allow the researcher to acquire much information. These reasons made the researcher go for a method that is personal and provides the most detailed information- interviews (Rodríguez-Pose, 2013). This is because it helped them to explore the question further resulting in better data and information collection to reach to a fruitful output for the research study. The descriptive research design made it easier to gain deep insights into the topic and the link between human capital and innovation which helped in reaching a better conclusion.

4.2 Research Findings

A very important step when it comes to look at all the research and analyze it to find the result is to be sure that everything is in a perfect sequence. This is because if a proper format or way is followed, then it becomes easier for everyone to understand the topic and proper evaluation can be done (Acts.et.al.2017). The reason one should go for presenting their detailed result in a proper sequence in respect to the research is that they will know and buts related to every aspect. This will make understanding easier, and better recommendations and meaningful conclusion can be drawn out of them.

Questions:

From the response received by the researcher the following analysis was made- The respondents are those people who are well qualified and an expert in their field. The first interviewee belongs to an academic career. He came into the conference because he made a project on change management organizational models (La Porta and Shleifer, 2014). People liked this. He was asked to present the same to the conference in 2009, and that is how he is a part of all the process. He is a well-known name when it comes to change management making him a very optimum choice for the research project.

Another similar individual is the interviewee 2. He is someone who has looked after his father’s business for a very long time. He has worked in it while growing up in his school and college days. He then formed his organization in construction niche that is affected by human capital (Angelidou, 2014). He came into the conference as he was only consulted about the issues of human capital in companies. This made him aware of all the key aspect making him an essential part of the research study.

The Interviewee 3 is another respondent has been in the economic development department since ages. He has worked in many companies at different positions giving him experience around a lot of topics. He also knows how does human capital play a crucial role (Machlup, 2014). He is also a very active participant in various conferences and research that goes on in and around the world which helps businesses to grow up.

The interviewee 4 is someone who is doing business on his own. He came into the conference because he has suffered from various issues of human capital and economic development.

The fifth interviewee is someone who is into business for quite some time and knows the importance of human capital. This helps him in making plans. He came into the conference to share his expertise.

The last interviewee believes in innovation and is finding ways to balance between economic developments along with human capital (Sellar and Lingard, 2014). He believes people are the most important part of any business.

The result received and analyzed regarding the various interviewees suggests that interviewee 1 has a Ph.D. in computer science. This shows how well educated they are (Acemoglu.et.al.2014). He kept on doing some research work in his academic background leading him to create a model that led him to the various conferences.

The interviewee 2 is someone who has seen business while growing up. He has been part of his father’s business in his school and college days. This naturally made him incline towards acquiring a degree in human capital related to people working in different levels.

The education qualification of the interviewee 3 is Ph.D. in human capital. He was an expert in his field, and this experience made him a popular guy in various organizations.

The four interviewee is an MBA in entrepreneurship. He did this to gain skill and knowledge about the subject (Neirotti.et.al.2014). To add more skills under his belt, he even took a course on economic development which helped him in shaping his talent.

Along the same line is the interviewee five educational qualification. He has done masters in economics from a very esteemed and renowned institute. This along with the education in entrepreneurship has shaped up his skill set.

The last interviewee has done his MBA in human capital and economic development. Along with that due to his early exposure to business he got a finance degree as well (van der Kroon.et.al.2013). This is because he always wanted to start his own business and this study helped him in doing so.

The result from the various answers of the respondents received from the questionnaire suggests that:

The interviewee one has been an entrepreneur since the days of his university. He is taken as a trouble maker which according to him is the trait of an entrepreneur. So, overall one can say that it has been an entrepreneur since last 18 years (Guerrant.et.al.2013).

The analysis of the two interviewees suggests that he has been an entrepreneur since 30 years. This started with him working for his father’s business in a niche like construction, along with retail and services. He started his own business of construction in 2007-08 at the age of 27. This overall depicts his entrepreneurial experience.

The result of interviewee 3 depicts that he has no experience when it comes to entrepreneurship. One can say this because he has not started his own company but has worked in different organizations.

The interviewee four has been an entrepreneur on and off for about ten years. He started out fine but after suffering from few losses, left it (Montgomery.et.al.2013). He again started to work on the same after gaining some proper training.

The entrepreneurial experience of the fifth interviewee is around five years. Though he has worked in this direction for quite some time official experience is of 5 years only.

The sixth interviewee has been an entrepreneur for last ten years or so. Though he has an experience of the same since very long, the experience counted has been about ten years.

A thorough analysis of the answers received from the interviewee depicts that

Interviewee 1 made a unique project. This made him want to start something at the university but he couldn’t due to some or the other reason. This made him decide to start something on his own that could be helpful to people. This made them develop a product that people can use (Khalili.et.al.2015). The reason they believed this would work is that they created something that was in demand and would still be in demand as students will always refer to the course for its viability.

The reason for interviewee 2 to start his own business is his family business in construction. His expertise in the same field along with his desire to do something of his own made him start his own company in 2008. The reason he thought it would be viable is that his father was in the same niche (Adair.et.al.2013). That along with his experience in construction, the manufacturing start up made him opts for this option.

The three interviewee did not start his own company but feels that the need to have security along with the power to change anything anytime made them start their own business. The need for security made them go for this option.

The interviewee 4 started his own restaurant business because he was passionate about it. He wanted to be a boss (Luthans.et.al.2015). The reason it was a viable option is that it is a very popular genre in his area which made him believe in its success.

The reason that made interviewee 5 to start his own business is his desire and the skill that he possessed. He did not want to do the regular jobs. This along with various other benefits made him start his venture. The reason he thought it would be viable is that it offered customers the option to order from retail stores which are always in demand as it makes the life of a consumer easier.

The sixth interviewee was not happy with what he was given. This made him start his venture so that he can provide others with the best of services (Kuper, 2013). This also ensures that his business is a viable one.

When we look at the matter on how the previous employment impacted the decision into venturing, one can realize that:

In case of interviewee 1 supported them in the first phase as it was in sync with the goals of the institute. But after that, they were not so supportive of their idea. They denied them the permission to do the task which made them do it in hiding after which they decided to do something of their own.

The previous employment of the two interviewees was very helpful in his decision to start his own business (Luthans.et.al.2015). His experience of the family business while growing up along with the experience of the public company made him a very organized and structured person who helped him in running his business.

The three interviewee has no business of his own making the whole thing not applicable to him.

The previous employment of the interviewee 4 played a major role in his business decision. The major is taking a restaurant as his business venture (Bloom, 2014). This along with the working of the business and the do’s and don’ts helped him plan his business properly.

The interviewee five previous employment had a significant impact over his decision in venturing into business as he saw the problem which the customers of his business were going through. He was also supported by his superior, and they helped him in identifying the key market for his business to grow (Zahra and McGehee, 2013).

The impact that the previous employment has on the interviewee six business venture can be seen that they helped him sharpen his skill as per the need. They also taught him to deal with customers and how to address their issue as that was not done properly in his previous company.

From the result received from all the interviewee, one can identify the role that education played when it comes to their venture.

For interviewee 1, his education is where everything began. The intellectual property item that he is currently dealing in started from his university days. It helped him gain a lot of insights while studying which helped him make a better product (Manuelli and Seshadri, 2014).

When it comes to interviewee 2, the education did not play much impact on his business venture. Rather the quality of research and analyzing both regarding reading and writing was a big help.

The third interviewee did not have any venture of his own. But he believes that his students and other people that he has worked with had not the much educational experience of any kind.

Education played a huge role in the business venture four interviewees (Webb and Martin 2017). It made him explore the business opportunity that he wanted to do. Concepts like demand and supply along with human capital management were made easier. The most important thing – entrepreneurship was because of the education only.

When it comes to the role that education played in the business venture, interviewee 5 had the hugest impact. This is because his education made him gain knowledge of entrepreneurship along with economic development that helped him start his own business. This also helped him in developing products that the audience wants which were great for his business.

For interviewee 6, his education helped him as they were a source to know what is and what should be (Bennett.et.al.2015). The education also helped him to realize how the business works as he had the theoretical knowledge of the same.

When one talks about the failed start up, the reason behind them and what they did differently, it helps one to know what all are the responsible factors.

In case of interviewee 1, the reason they suffered a failed start-up is that they stopped working (Castles.et.al.2013). The pressure of the university and other factor made them fail. To rectify the situation, a backup of other plans is kept by him.

The reason interviewee 2 suffered a failed start-up is that the timing in which they launched the product was not correct. They had wrong assumption of lending of money which eventually led to the failure of their business. Better planning and market research along with global market was done to learn from it.

The interviewee 3, himself did not have a business venture, but his sister suffered a failed start-up of managing art galleries. The reason it failed is that she paid attention to details in which others were not interested. Took learning from the past mistake as it is the part of the process.

After experiencing failure in the garage business, interviewee 4 believed that his lack of passion for the business and no knowledge of mechanics made the business a fail (Khavul and Bruton, 2013). To make the current venture a success, being the chief decision maker and passionate about your work was what he emphasized on.

The interviewee 5 suffered a lot of failed start-ups because he was not very good at reading the market and what are the opportunities available. This along with the lack of mentor made his start-up a fail. To rectify the situation in the current scenario, he looked for a good mentor and believed in a strong financial management program (Guerrero.et.al.2014).

The reason interviewee six witnesses failed start-up is that he did not have a clear vision of what the customer or the employees wanted. To tackle that in his new venture, he started valuing the inputs provided and in sharing the vision.

When it comes to finding out the general practice regarding human capital, the finding of the one interviewee is that different people behave differently. The system that rules everywhere irrespective of the location is that human capital is all about relationship and how has one build them.

In case of interviewee 2, he believes the general practice is that one should balance the human capital in the business. To does that recruit people that have talent that is missing in oneself or the business? This is a universal approach (Maddison, 2013).

In the opinion of the interviewee 3, general practices depend on the nation and the HR. It is more of a national approach. Some belief to juice out as much as you can from an employee or make them function in a fun environment.

The four interviewee believes that employees are the success or failure factor of any business. One needs to invest in them and the thing that attracts them. It is a universal approach that can be applied anywhere.

When asked about the general practice relating to human capital to the interviewee 5, the answer is entrepreneurship and innovation (Sinatti, and Horst, 2015). The perfect mix of national and universal approach is needed. It includes treating your employees fairly and in case of Ecuador to provide them fair wages.

The interviewee 6 believes that employees are very important for the business. Proper human capital management should be done which helps them grow. This is universal as it helps in the growth of the company.

When talked about the link of human capital and entrepreneurial innovation, the different viewpoints states that:

For interviewee 1, there is a huge link between entrepreneurial innovation and human capital. This is because to do something different; one needs the talent of people who believe in your idea. Yes, it affected his activity as he recruited people who were old or were good at research as they were interested in what to do and how to do it things (Shaw.et.al.2013).

Interviewee 2 believes that there is a strong link when it comes to human capital and entrepreneurial innovation. This is because it is the human that makes things a reality. Yes, it influenced him because his father was a hardcore entrepreneur which affected his thinking.

The 3interviewee with his academic knowledge feels there is a big link regarding entrepreneurial innovation and human capital as they get all the tasks done. This is because creative and innovative people are not so sacred (Agénor and Montiel, 2015).

In the opinion of the four interviewees, there is a strong link when it comes to human capital and entrepreneurship. This is because he believes that they play a huge role in economic development. It has influenced his entrepreneurial activity as he believed in one of his employee’s idea of innovation which led success for his business.

According to 5 interviewees, the link is there because he always emphasis on good and fair working conditions. This will lead to successful management of the business leading to the success of the company.

In the eyes of interviewee 6, human capital and innovation play a critical role in the success of the company. This is because it helps in making the organization more efficient (Stromquist and Monkman, 2014). This is the reason he believes in investing in people as the top priority.

When asked about the learning regarding human capital, the interviewee 1 believes that knowledge gaining is very important. One should also trust their intuition and believe in people who want to know how things are done. Hire more people who are good at research.

The interviewee 2 believes that the most important thing is that hire people who will work independently and can take the decision. He has learned from his mistake that makes him a better entrepreneur.

For interviewee 3, the biggest lesson is to listen to your customers and employees. Connect people to things they care about (Knowles.et.al.2014). One should reflect upon themselves to see how to become better at what one does.

Interviewee 4 believes that human capital is the prime factor which can affect the journey of any organization. Therefore a constant need for their development is there. If given a chance the interviewee would not have done things differently as it helped him become a better entrepreneur.

Interviewee 5 is of the strong mindset that human capital is very important in the growth of any business. They give that personal touch which is very important. Other factors such as mentorship and financial management are also something that has affected his journey (Beamish, 2013). This and the economic development knowledge were very important for him.

The last interviewee feels that human capital is the reason any business is profitable or not. He had experienced the same at times when not proper attention was paid to them. This made him believe in them all the more.

At last, one can conclude that the research findings of this research, helped businesses and economies understand the role of human capital and innovation in business. The factors affecting them were highlighted along with the role they play in the business success or failure. The economies of the U.S and China and the effect that human capital had on them, and their development helped us get a better insight on the role of human capital on the developing and developed nations (De Brauw.et.al.2014). In the next chapter that will be followed, a proper conclusion of the same would be drawn. This would be followed by a conclusion that one can apply in the business to improve the connection between human capital and entrepreneurial innovation.

Response Analysis:

It is very clear that the respondents agree unanimously on one point: ‘Innovation drives a successful Business.’ Interviewee One had a family background of serial entrepreneurship and explained how businesses or startups must invest heavily on ‘Talented Individuals’ which allows them to scale up to next level. Interviewee Two is an experienced academician and owns three businesses. He gave an example where just a sense of job insecurity triggered by a management position change caused innovative practices to cease as the talented employees now were not focused enough (Tan, 2014). Interviewee Three talked about two factors to find the right match – capabilities, and environment. He gave an example of Henry Ford, as to how his engineering capabilities and years of competitive environments he worked in for years, came in handy when he developed the ‘Model T’. Interviewee Four talked about a different perspective of business innovation, where he was able to achieve early success by incorporating human capital development strategies of ‘fair development’ of employees. It includes listening to employee needs so that they are not left behind on their individual growth. Interviewee Five asserted on only one point – invest in people first, then in fixed capital for successful business growth. By doing this, businesses can focus on their competition more avidly, as with the right set of individuals they have the confidence to surpass any competition knowing the fact that these set of talented groups can foresee improvements in current business practices (López and Santos, 2014). Interviewee Six explained how finding people who can buy your shared vision and are ready to swim against the tides are important to build a genuine team, will ultimately lead to business growth. Interviewee Seven gave an example of a business case study, where an employee with an Art background and a management diploma, was able to come up with an art-centric approach to business that led to an economic boost.

Response Analysis:

Interviewee One focused on the discussion of how small and medium-sized entrepreneurs are involved in solving ground zero problems for the local community and providing them jobs, which is important for setting up people’s mindset towards their responsibility and not just focus on the perks of being an entrepreneur (Hall.et.al.2013). Interviewee two talked about the importance of culture and mindset of governments, and how acknowledged and providing the right kind of environment for the development of a small idea towards problem-solving can lead to economic growth ultimately. Interviewee Three asserted more on people’s capabilities to become an entrepreneur (De Vita.et.al.2014). People with right capabilities will find a way anyhow, irrespective of their culture or upbringings. Although he accepted the fact that right kind of education too can lead to an early success, which is all dependent on the environment created by the government. Interviewee Four and Six had somewhat similar pointers, and they both discussed the regulation of laws and local permissions required for a budding business to grow.

If provided the right kind of environment and if a government sets up the right standards, a small or medium-sized business won’t take much of an effort to grow into Huge Corporations, which ultimately will boost the economy. Interviewee Five discussed how entrepreneurs are trendsetters. Even if they fail, they let other entrepreneurs know what will work and what not, so that the governments thrive on their success (Castellacci and Natera, 2013). Interviewee Seven discussed on the fact as to why developing nations are known by that name – they are not able to create enough jobs and raise the standard of living for people, which is what the entrepreneurs do. Local entrepreneurs can be termed as the ‘root people’ who ultimately helps in engaging the local human capital for the betterment of their people.

Response Analysis:

Interviewee one discussed the mindset of people in the United States. Here the focus is more on the entrepreneurial and creative skills, which has created never-ending valuable services for the nations for years now. Interviewee Two discussed how simple policy changes done by the US government had reduced large-scale unemployment due to the recent world crisis. A lot of emphases has been made to develop the Human Capital. Interviewee three asserted on the fact that educational excellence has led to technological advances which have created a pool of highly skilled Human capital ready to take on world’s challenges (Barkemeyer.et.al.2014). Interviewee Four talked about the government’s structured approach towards promotion of Small and medium enterprises growth, the ease of doing business for them in the US and attaining economic growth.

Interviewee Five talked about the concept of promoting the culture within the nation and at ground zero and implementing the human capital values. When the human resources are termed as equal and important, a sense of success is driven among them which is ultimately channelized towards economic growth. Interviewee Six discussed government’s approach towards wealth distribution, making sure nobody is left behind and are trained enough for their skill development so that equally participate in economic growth (Matos and Silvestre, 2013). Interviewee Seven, on the other hand, discussed how to focus people are, and any political development based on any burning national and social topic often leaves people undeterred to continue focusing on their businesses.

Response Analysis:

Interviewee one compared China’s entrepreneurial culture with that of developed countries. They have the best setup for implementing technologies and related procedures, but they lack resourcefulness, which is more due to their government’s policies. Interviewee Two was not too pleased either with the Chinese approach and discussed the social stigma for Entrepreneurs or businesses persisting in some parts of the country. Failing is seen as shame or disrespectful, and as entrepreneurs are bound to fail at some point of their lives, sends out negativity towards the economy (Veltmeyer, 2013). Interviewee Three had some positive insights on the number of business investments they successfully were able to implement just by implementing and managing their human capital in the right direction, which has to lead them to Monstrous economic growth. Interviewee Four asserted on the fact that the Chinese lack policies, both on micro and macro levels, but was optimistic to see the government not sitting idle and doing nothing in this front, and its impact can already be seen on their economies.

Interviewee Five had a mixed response to the question, where the discussion was done about China having low production costs which ultimately helped their economies (Choo Huang.et.al.2014). But this low production cost is the result of the minimal focus on Human capital management and its development which is not acceptable culturally.

Interviewee Six and Seven unanimously agreed on the facts that the Chinese can take advantages of their population in the long run, and recent developments made on global fronts by Chinese human capital is just a perfect example for this statement.

Response Analysis:

Interviewee one discussed how social reforms are required to develop and foster business ventures. If the government itself is corrupt, doesn’t support flexible laws and doesn’t promote entrepreneurial values at the root level, the whole of country’s human capital is discouraged and is left clueless. Interviewee two added to the same discussion, where the importance of Intellectual Property Rights protection and good political structures were discussed. Interviewee Three talked on a different front of this question, where government’s structure to promote and support startups ready to take up challenges without the fear of failure was discussed. Even if you fail, you show someone else the path to move forward and don’t repeat the same mistakes – were his words (Chu.et.al.2014). Interviewee Four talked about government’s mentorship and training programs for budding entrepreneurs and how lack of it can affect their economic growth. Interviewee Five discussed the lack of capital movement within the Developing nations.

There must be tax structure such that profits made by the business ventures are cycled back effectively in promoting and supporting other budding business units, which not only helps in wealth transition but also stabilizes the government’s economy in the long run. Interview Six discussed the lack of resourcefulness among the people of developing nations. They are more desperate to earn for individual benefits rather than contribution at the national level. This behavior promotes bad practices among business units, as their fundamentals are based on wrong practices of wealth creation (Chao.et.al.2014). Discussing on the same lines, Interviewee Seven discussed the people are getting more into their ‘comfort zones,’ where the focus is just to ‘eat, sleep and eat again.’ The government on the other hand in developing nations lacks implementing such programs which encourage people to go out of the box and create value for the economy in terms of problem-solving.

As per the interviewee, one entrepreneur always keeps the economy as the priority and give their best to keep the economy always growing. To keep the economy alive that always growing investment for the growth of the business is their priority. For the betterment of the country, they always try to increase the brand value of the organization. As per the interviewer two human capitals always support the growth of the economy. As the business person give salary to the people, and it becomes the reason for the money rotation, and it becomes the reason for the growth of the economy. According to the interviewee three labors also contribute in the growth of the economy. As per the interviewee four manpower and efforts of the business person always increase the output of the economy. As per the interviewee five labor and capital of the economy always give their best to boost the efficiency of the economy (Robinson, 2013). According to the interviewee, six business person always give their best to increase the overall efficiency of the economy.

As per the interviewee, 1 lack of resources affects the nation in very significant manner. To get the good growth nation has to develop the resources, but lack availability affects the business. According to interviewee two lack of resources affect the nation in very effective manner. As per the interviewee, 3 technologies are the biggest issues for the development of the nation. According to the interviewee, 4 lacks of resources affect the nation, and skilled labor is not available in the market. According to the interviewee, 5 skilled labors is not available in the market, so nations are not developed (Etzkowitz and Leydesdorff, 2014). As per the respondent, six human resource capital is not available in the market, so nations are not developed.

Response analysis

To train the employees both the nations are giving their best as per the interviewee one. According to the interviewee 2, China is the only country in the world which has skilled labor at very reasonable rates. As per the interviewee 3, both the nations are going on the path of success through skilled employees in the country. According to the interviewee, 4 USA is the country which has support from his labor. As per the interviewee, 5 employees and business person of both country have support from the government (Fägerlind and Saha, 2016). The hiring of the employees from other countries is in trend in both the nations.

Reflections

19 What do you think are the future trends in human capital management and entrepreneurship in the future?

Yes, I future trends in human capital management and entrepreneurship in the future. Technology plays a vital role in the growth of labor market and increases the employment opportunity for both the segments either business or labor market. Various skilled programs are floating in the market increase the value of the employees in the market (Samir and Lutz, 2017). Technology is updating day by day and also improves the work efficiency of the employees in very effective manner.

4.3 Synthesis and Summary of Data

Human capital is the core factor of any business or company irrespective of the niche they belong to. After analyzing the findings of the entire respondent received in the form of descriptive answers of the interview question, one can easily say that majority of the interviewee feels that human capital is a very important factor in the success and growth of any business. The majority of the interviewee is educated people who understand the link between entrepreneurial innovation and human capital. It shows that education plays a huge role when it comes to entrepreneurship. This is because they have learned something or the other during their education days which has helped them in their business or work in some way or the other. Most of them are an entrepreneur with good experience in their kitty (Sánchez, 2013). The analysis of the same is that they know the connection when it comes to development and human capital and how both are responsible for each other.

A major conclusion that could be drawn is that almost all the interviewee has worked somewhere before starting their business. The need to be one’s boss and the issue of not being heard is one major factor that made people leave their job. This shows that they have experience in how human capital functions are making them good at their job. They have also witnessed some form of failed start-up either one their own or someone close to them. This made them realize the mistake they have made regarding the connection of human capital and innovation. They realized their mistake which helped them in their upcoming business ventures. The interviewee on a general basis strongly in human capital and believe that their fair treatment and proper wages are what makes them stay with an organization (Czernek, 2013). This along with great chances of growth and learning are important to support the innovation factor that the company wants to achieve.

At the last one can say that human capital is the strongest link with the entrepreneurial innovation. They both are needed to set the success of the company. Skills of the human will led them to be a part of many innovations which are necessary for the long run of the business. This assures that development of human capital is critical if the business and its owner want to grow in their particular field.

4.4 Contribution to Applied Practice

The finding of any research is the most important thing. All the hard work is done to acquire it. This is why it is very important to use validate quality system and techniques when it comes to studying the finding of the research. The reason they allowed to reach it is that a set of the expert panel was monitoring the study. The technique is used in observation. The reply received from the various interviewees on various questions was studied thoroughly to know how they play an impact on the study of the research. This along with the personal knowledge and experience of the researcher over the years has helped him to reach the study’s finding most properly. With the help of the applied practice when came to know about the various factors that have been used in the research time and again (Midgley, 2013). When it comes to contribution regarding the system used in the research, it should be seen that all the important elements are measured correctly.

The researcher with experience should look after the factors that have an impact on the systems and processes used in the research. By monitoring all the factors and what implications they have on the business, it became easy to arrive at the study’s finding. As the systems were verified and tried at several times, they could be easily trusted to show the right impact of the research. The major contribution to applied practice lies in the fact that all the topics are paid proper attention, so that true findings are depicted (Sánchez, 2013). A test run could be applied to see which one suits the research the most and all the problems caused should be solved immediately.

After undergoing all the analysis and research findings of this research, one could easily see that human capital is the backbone of the business. No matter the level or degree of business, human capital and innovation are a must have to be good at the job. There are a lot of changes that the business can apply regarding both these factors along with many others that can help in organizational improvements. The tangible changes are those which the organizations can see. This makes them visible to all. The changes that can be made will improve the business standing along with the quality of its employee. Some of them are:

• Recruiting people that focus on how to do- A very important part of the organizational improvement is to hire people in the business that are concentrated on how to do innovative things. People who are good at research and want to do something different should be shown importance as they can help in the growth of the company.
• Hiring human capital that are initiator- People who are ready to take the work on their own and are ready to take accountability for their decision should be made part of the business venture. The result will automatically be seen in the form of more innovation in the venture.
• Skill development- No innovation can be successful without proper human capital. And no human capital can survive without skill improvement and development (Samir and Lutz, 2017). Constant efforts should be made by companies to see that the human capital is improving in what they do. This can be seen by the way the employees handle difficult situations.
• Hiring people that the organization is lacking- A lack of a talented human capital can be seen in various spheres of the business. That is why it is very important to hire skill set that is missing in the company. An overview should be done to see what is missing in the company regarding talent and the same can be recruited or developed depending on the situation.

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