The Practice of Human Resource Management by Very Small Business Entrepreneurs

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.