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27/07/2022

On the relationship between human capital and firm performance

This paper applies the ordinary least square regression model to estimate the
effects of the human capital on the business performance of small and medium enterprises
(SMEs) in Vietnam. We exploit the cross-sectional data of SMEs for the year 2009. The
estimated results show that basic and professional education of the firm owner are
important factors affecting the success of the firm. Further, experience in owning a
business before can help the firm owners enhance their performance. Finally, knowledge
from learning is seen to have a strong effect on entrepreneurial performance.