Academy of Strategic Management Journal (Print ISSN: 1544-1458; Online ISSN: 1939-6104)


Financing Decision, Human Capital Investment, and Entrepreneurial Performance: An Empirical Study on SME in Makassar

Author(s): Mursalim Nohong, Abdul Razak Munir, Haeriah Hakim

This study aims to analyze the effect of funding policies on human capital investment and entrepreneurial performance. The data and information in this study were obtained from the owners of UKM in Makassar City by using a questionnaire. Of the 125 samples, only 105 questionnaires were filled in completely and were feasible to be processed and used in the discussion.

This study found that funding policies to fund working capital and company investment were able to increase entrepreneurial performance as reflected by the increase in sales and profits each period. The availability of sufficient funds for investment and business development, especially for human capital, also has a positive and significant impact on entrepreneurial performance. In other words, human capital investment can mediate the effect of funding policies on entrepreneurial performance.

Get the App