Human capital development for SMEs in Pakistan: is the “one-size-fits-all” policy adequate?

Abstract

Purpose – Pakistan adopted “one-size-fits-all” policy for human capital (HC) development with the assumption that the level of HC is equal across industry and firm size. The purpose of this paper is to test this major assumption on which this policy is based, by comparing the differences in the levels of HC, overall and by dimensions of HC, by industry and firm size. Design/methodology/approach – The study is based on new data set of a sample of 750 manufacturing SME firms in Pakistan, compiled through a survey. Applying the independent sample t-test, one way analysis of variance and multivariate analysis of variance, the hypotheses of differences in levels of overall and dimensions of HC were tested. Findings – The results indicate significant differences in the levels of HC by industry and firm size. The levels of HC were found to be higher in textiles, food, metal and leather industries, and for medium-sized firms. Practical implications – The findings provide supporting evidence on the inadequacy of the current human capital development (HCD) policy in Pakistan. The study therefore recommends customized HCD policies, accounting for differences across industry and firm size. Originality/value – By taking the data on nine major dimensions of HC from 750 manufacturing sector SMEs, the study tests the level of overall HC and its nine dimensions by industry and size. The study also challenges the “one-size-fits-all” policy of the government of Pakistan for developing HC in SMEs.

Nurturing Entrepreneurship Ecosystem in a Developing Economy: Myths and Realities

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“…Subsequently, the question on the role of government to policy development was inquired. Since entrepreneurship is different in nature than conventional business and one size fit for all approach was reported which is not suitable for innovation and growth of business (Mubarik, 2015). In our study it was also found that government has doing nothing in aspect of entrepreneurship policy.…”

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“…Untuk itu, diperlukan networking yang luas dan kuat, baik secara internal dan eskternal, maupun vertikal dan horizontal [9]. Disamping itu, agar terbentuknya SDM yang mapan, entrepreneur membutuhkan pengalaman, pendidikan dan pelatihan, kemampuan dan ketrampilan personal, pemenuhan sumber daya, sikap, stabilitas dan kesehatan [10]. Dengan demikian, dalam mengembangkan entrepreneur, diperlukan peran dari perguruan tinggi [11].…”