EAS Publisher | The Role of Human and Organizational Capital in Small and Medium-Sized Entities in the City of Makassar

The Role of Human and Organizational Capital in Small and Medium-Sized Entities in the City of Makassar

DOI : https://doi.org/10.36344/ccijemms.2022.v04i05.005

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This study aims to examine and analyze the following: Description of human capital and organizational capital in SMEs in Makassar City. Regulations Number 20 of 2008 explains several vital points that serve as guidelines for empowering small and medium-sized businesses: creating a balanced, developing, and equitable economic structure for all; human capital is an added value for actors in conducting business. Organizational capital is the attitude, demeanour, and promptness in customer service that makes consumers feel cared about. Based on the Slovin formula and the population of 995 SMEs in the city of Makassar, 167 SME managers constitute the sample for this study. Several recommendations can be made based on the findings of this study for the government/policymakers, SMEs, and future research. In order to increase their competitive advantage, SMEs are expected to continually strive to increase their intellectual capital (human capital, organizational capital) while also continuing to innovate in various areas, including product innovation, organizational innovation, and marketing innovation.

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