Do Human Capital Factors Enhance Business Growth? A study of Dhaka Metropolitan area's young entrepreneur in Bangladesh

Abstract

Human capital is seen as a critical resource in projecting the growth of any business initiative, particularly the survival of young-owned businesses. Investigating the human capital capabilities of young-owned companies has been a hot topic of conversation recently since young entrepreneurs confront distinct obstacles not faced by non-middle-class entrepreneurs. This research aims to determine the effect of human capital determinants on the business growth of young entrepreneurs in Bangladesh’s eastern area. The elements of human capital were business education, business experience, and business skills. A structured questionnaire was utilized to gather data from 280 young entrepreneurs who are members of their district chambers of commerce in the Dhaka Metropolitan Area. A simple random selection technique was employed to choose the technique frame. The data analysis technique used was structural equation modeling (SEM) using AMOS in SPSS 23.0. The structural model research revealed that business experience and business skills had a strong and positive link with the growth of young entrepreneurs in Bangladesh. However, business education had no significant effect on their business success. This situation is prevalent among Bangladeshi middle-class families, particularly in the Dhaka Metropolitan Area, where most residents are urban. However, some can overcome this obstacle and continue their business activities. Young entrepreneurs, chambers of commerce, and decision-makers may utilize this study’s findings as a template for gaining insights. They can use it to interpret the issues affecting the human capital of Bangladesh’s young entrepreneurs’ business growth.