Human Capital, Innovation and Entrepreneurship in Micro and Small Businesses in Laos
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Along with the adoption of an open-door policy, the Government of Laos has recognised its role and supported the development of the private sector. Small- and medium-sized enterprises (SMEs) constitute the core of the private sector, which has achieved rapid growth in the last three decades and noticeable contribution to job creation. This chapter attempts to address the relationship between entrepreneurial human capital, and successful entrepreneurship and innovation in Laos. The analysis is based on primary data from a questionnaire survey of manufacturing SMEs in Vientiane in 2016. The results indicate that owner education at the university and higher levels increases the probability of innovation and that a combination of augmented human capital and innovation tend to enhance successful entrepreneurship. The findings shed more light on the importance of human capital, and innovation and entrepreneurship promotion in economic development. It gives rise to the quality and appropriateness of education and training for entrepreneurs, if the target of the government policy is to foster successful innovation and entrepreneurship and to promote SME development as part of socio-economic development.
KeywordsHuman capital Product and process innovation Entrepreneurship SMEs Laos
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