Managerial effectiveness in small enterprises: Implications for HRD

The vast majority of indigenous Irish enterprises can be classed as small (less than 50 employees). Latest figures from the census of industrial production indicate a figure of 90 per cent. However the Irish small firm sector is notoriously volatile in that a large percentage of new companies “die” in the first five years. For those that survive there are many barriers to growth. Therefore the potential of our small firm sector in aiding employment creation and economic development is not realised. Studies on life cycle and growth indicate that internal managerial capabilities are a significant factor in constraining growth. This paper details an investigation into a particular aspect of management; HRMs and highlights how managerial behaviour in this respect can affect the success of a small firm. Implications for providers of HRD are also analysed and discussed.