The following form can be presented to be the general framework of the study, as follows:
This study aims to explore the impact of human resource competencies on the performance of small-scale startups in Egypt, focusing on the case study of the Project Development Agency. The study focuses on how human resource management strategies affect the performance of these companies, specifically through analyzing best practices and assessing the efficiency of human resources within these companies. This research is important because it seeks to understand the relationship between human resource competencies and the performance of startups in an environment characterized by limited resources and the major challenges faced by these companies. The study relied on the descriptive analytical approach to analyze the relationship between human resource efficiency variables and the performance of startups. This approach is appropriate because it allows the examination and analysis of existing data in a way that allows accurate conclusions to be drawn about the impact of human resource competencies on performance. The study included a sample of small startups supported by the Project Development Agency in Egypt, where the effectiveness of administrative, mental, and personal competencies in these companies was evaluated. The results showed that human resource competencies play a crucial role in improving the performance of small-scale startups. In particular, administrative competencies were found to be the most influential, as they contribute significantly to organizing work and achieving the company's strategic goals. Intellectual and personal competencies also showed a significant impact on performance, but to a lesser extent than managerial competencies. These results emphasize the need to develop and train core competencies among employees in startups to increase their effectiveness and enhance the company's overall performance. The study recommends the importance of enhancing training and development programs in key competency areas, especially managerial competencies, to improve startup performance. It also emphasizes the vital role that human resources play in driving the success of these companies, especially in a challenging business environment such as small startups. Furthermore, the study recommends the adoption of effective human resources management strategies that are compatible with the nature and needs of startups to achieve the best possible results.
تهدف هذه الدراسة إلى استكشاف تأثير كفاءات الموارد البشرية على أداء الشركات الناشئة صغيرة النطاق في مصر، مع التركيز على دراسة حالة وكالة تنمية المشروعات. تركز الدراسة على كيفية تأثير استراتيجيات إدارة الموارد البشرية على أداء هذه الشركات، وتحديداً من خلال تحليل أفضل الممارسات وتقييم كفاءة الموارد البشرية داخل هذه الشركات. هذا البحث مهم لأنه يسعى إلى فهم العلاقة بين كفاءات الموارد البشرية وأداء الشركات الناشئة في بيئة تتميز بالموارد المحدودة والتحديات الكبيرة التي تواجه هذه الشركات. اعتمدت الدراسة على المنهج التحليلي الوصفي لتحليل العلاقة بين متغيرات كفاءة الموارد البشرية وأداء الشركات الناشئة. هذا المنهج مناسب لأنه يسمح بفحص وتحليل البيانات الموجودة بطريقة تسمح باستخلاص استنتاجات دقيقة حول تأثير كفاءات الموارد البشرية على الأداء. شملت الدراسة عينة من الشركات الناشئة الصغيرة المدعومة من وكالة تنمية المشروعات في مصر، حيث تم تقييم فعالية الكفاءات الإدارية والذهنية والشخصية في هذه الشركات. أظهرت النتائج أن كفاءات الموارد البشرية تلعب دوراً حاسماً في تحسين أداء الشركات الناشئة صغيرة النطاق. على وجه الخصوص، وجدت الكفاءات الإدارية أنها الأكثر تأثيراً، حيث تسهم بشكل كبير في تنظيم العمل وتحقيق الأهداف الاستراتيجية للشركة. أظهرت الكفاءات الفكرية والشخصية أيضاً تأثيراً كبيراً على الأداء، ولكن بدرجة أقل من الكفاءات الإدارية. تؤكد هذه النتائج على ضرورة تطوير وتدريب الكفاءات الأساسية بين موظفي الشركات الناشئة لزيادة فعاليتهم وتعزيز الأداء العام للشركة. توصي الدراسة بأهمية تعزيز برامج التدريب والتطوير في مجالات الكفاءات الرئيسية، وخاصة الكفاءات الإدارية، لتحسين أداء الشركات الناشئة. كما تؤكد على الدور الحيوي الذي تلعبه الموارد البشرية في دفع نجاح هذه الشركات، وخاصة في بيئة عمل صعبة مثل الشركات الناشئة الصغيرة. علاوة على ذلك، توصي الدراسة باعتماد استراتيجيات فعالة لإدارة الموارد البشرية تتوافق مع طبيعة واحتياجات الشركات الناشئة لتحقيق أفضل النتائج الممكنة.
Over the past 40 years, the emergence and expansion of information technology (IT) into various management subsystems have sparked significant academic interest in conceptualizing the domain of competence. This growing interest spans not only the business sector but also various management areas, including organizational behavior, human resources, leadership, management styles, and strategy. Given that the primary goal of any organization is to achieve the highest quality of work through its employees, human resource managers play a pivotal role in this endeavor.
Throughout these years, human resource management has experienced a fundamental transformation, evolving into a strategic partner that adds value (Ulrich & Dulebohn, 2015). As a result, researchers have begun to question the competencies, knowledge, skills, and abilities necessary for human resource managers to effectively perform their activities and meet the new strategic demands of organizations in the information and communication technology (ICT) sector (McDonnell & Sikander, 2017).
Recent studies on HR managers' competencies have predominantly focused on a global approach that identifies a set of general competencies applicable to the HR profession (Ulrich et al., 2017). This competency model encourages managers to adopt a standardized approach across their organizations, often overlooking the unique social contexts and specific fields of activity.
Undoubtedly, the human element is crucial in any organization, particularly in small and medium enterprises (SMEs), where effective human resource management can be a distinguishing factor. The efficiency of human resources is a key driver of success and sustainability for small businesses, as it relies on the optimal utilization of available skills, capabilities, and resources.
In this introduction, we will examine the significance and impact of human resource efficiency on business success within small organizations. One of the most notable benefits of effective human resource management is the enhancement of employee performance. A motivated and inspired team provides a solid foundation for achieving business objectives and executing strategic plans successfully. Investing in the development of employee skills and fostering team spirit leads to increased productivity and quality, ultimately boosting the company's competitiveness in the market.
Furthermore, efficient human resources contribute to the cultivation of a positive and supportive work environment. When employees feel respected and valued, they are more likely to engage with the company, exert effort, and innovate within their roles. This positive interaction between management and employees fosters team spirit and heightens their commitment to achieving organizational goals. Additionally, human resource efficiency plays a crucial role in formulating recruitment strategies and selecting the right personnel for the organization. Well-trained HR professionals can refine selection techniques and meticulously evaluate candidates' skills, ensuring that the best talent is integrated into the team.
Small startups face significant challenges in achieving optimal performance due to a lack of competencies in human resources. These companies often lack the experience and skills necessary to effectively manage human resources, leading to weaknesses in recruitment, training, and employee development. This lack of competency can negatively impact productivity and innovation, increase employee turnover rates, and reduce the ability to adapt to market changes. Without improving human resources competencies, these companies may struggle to grow and survive in a competitive environment.
The study aims to achieve the following objectives:
1- Examining the impact of human resource management strategies on the performance of startup companies.
2- Analyze best practices and policies in the field of human resources management.
3- Revealing the impact of human resources efficiency on the performance of Micro-sized startups by applying it to Enterprises Development Agency in Egypt.
4- Providing a set of recommendations and proposals to Enterprises Development Agency officials. Based on the results of the study, they can be generalized and applied in practical scenarios.
The importance of the current study is due to its scientific and practical additions as follows:
The importance of this study is clear in its attempt to contribute to bridging the research gap in studies and research related to the concept of Performance of Micro-sized startups, especially regarding Human Resources Competency factors. The study also responds to the call of many earlier studies to conduct more research on these topics, given their great importance in enriching academic literature and scientific research centers, especially those that focus on management studies. Moreover, this study can provide a database to help researchers and scientists conduct further research in this field".
Improving human resource efficiency in micro-startups can significantly enhance their performance. Studies have shown that effective human resource management contributes to a 20% increase in productivity and a 15% reduction in employee turnover. By developing skills, fostering innovation, and promoting a positive work environment, startups can achieve sustainable growth and strengthen their competitiveness in the market.
The company offers you several benefits for individual membership, including:
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The following form can be presented to be the general framework of the study, as follows:
Main Hypothesis: It is expected that there is a statistically significant effect of Human Resources Competency on the Performance of Micro-Sized Startups in the Enterprises Development Agency.
Sub-hypotheses:
- H1.1: It is expected that there is a statistically significant effect of Achievement Competencies on the Performance of Micro-Sized Startups in the Enterprises Development Agency.
- H1.2: It is expected that there is a statistically significant effect of Administrative Competencies on the Performance of Micro-Sized Startups in the Enterprises Development Agency.
- H1.3: It is expected that there is a statistically significant effect of Mental Competencies on the Performance of Micro-Sized Startups in the Enterprises Development Agency.
- H1.4: It is expected that there is a statistically significant effect of Personal Effectiveness Competencies on the Performance of Micro-Sized Startups in the Enterprises Development Agency.
The importance of human resource efficiency in micro-sized startups is highlighted due to limited resources, with human resources being the foundation of the company's sustainability. Given the high failure rates of startups, this research aims to provide insights into improving human resource management to increase productivity and reduce failure, while focusing on its role in fostering innovation and adapting to competition.
Depending on the nature of the subject of the study and the information that must be obtained to reveal the impact of Human Resources Competency (HR.C) (as an independent variable) on the Performance of Micro-Sized Startups (P.MS) (as dependent variable), and through the questions that the study seeks to answer, this study relied on the descriptive analytical approach, which is "a way to describe and measure the phenomenon studied by collecting, classifying, and analyzing the problem."
A descriptive Study Design was used for the current study. The descriptive approach also means the type of research that is carried out by interrogating the study community members or a sample of them, with the aim of describing the phenomenon studied in terms of its nature and degree of existence. According to Sekaran & Bougie (2010), a descriptive Study Design is non-experimental in that it deals with the relationships between non-manipulated variables in a natural rather than laboratory setting. The conditions and events have already happened, and the researcher can select the variables that are most relevant for analyzing the existing relationships.
In the Descriptive design, a hypothesis is also formulated and tested, and generalizations of findings are arrived at through inductive-deductive reasoning. Descriptive design also employs methods of randomization so that error may be estimated when inferring population characteristics from observations of samples, and the variables and procedures are described (Cooper & Schindler, 2013).
The researcher who used this research looked to investigate discrepancies and develop recommendations that would improve overall performance and bridge the research gap in this area.
a- Two types of data were used to achieve this approach from the following sources:
b- Secondary Data: It is the data obtained to build the theoretical framework of the study, where it was relied on to identify the theoretical background of the study, on the various references of books and articles and previous studies of Arab and foreign academic theses of the relevant master and doctorate and published research, which dealt with the topics of Human Resources Competency (HR.C) and Performance of Micro-Sized Startups (P.MS).
c- Primary Data: This data was collected in the field through the survey list in the field study to test the validity of the assumptions on which the study was based. By obtaining this data from employees in the Enterprises Development Agency. To attain and meet the research objective, the researcher adopted a deductive and quantitative approach where information is gathered from respondents through a survey using questionnaires to ensure the validity and reliability of research findings are relevant, the researcher used an appropriate questionnaire, sampling technique, and data analysis method which also covers the accuracy and quality of the research.
The main instruments employed for data gathering were questionnaires. These had closed-ended items, where the respondents had to tick or circle the most appropriate answers. Consultations with academic professionals were used to confirm the content while building the questionnaires. The questionnaire was used as the main tool for obtaining the primary data from the study population. The questionnaire was chosen because it is one of the most common methods of data collection and is used to suit and adapt it in terms of the nature of the study.
Population: In this study, we used a cross-sectional design and collected data from 334 staff members operating in the Enterprises Development Agency. This design choice is informed by earlier literature in the field of Human Resources Competency (HR.C) and Performance of Micro-Sized Startups (P.MS). The total the study's population was 2,523 employees, and the size of the sample was 334.
Sample Design: The study sample was 334 and the survey was administered to obtain 334 valid questionnaires for statistical analysis. This analysis was used to determine whether human resource efficiency (HR.C) affects the performance of small-scale startups (P.MS) across the input, process and outcome stages.
Study (Iqbal et al., 2023) The study found that human capital positively influences entrepreneurial orientation and market orientation, which in turn leverage SME performance. The impact of these orientations on performance was significant. Additionally, the study utilized PLS-SEM to analyze these relationships.
Study (Kakooza et al., 2023) The study found that location decisions have a more significant impact on SME success compared to business choices. The research highlighted the importance of strategic location decisions in contributing to the success of SMEs. Additionally, the study used correlation and hierarchical regression analysis to support these findings.
Study (Alan & Roslyn, 2023) The research found that emerging digital technologies have a significant impact on HR functions and roles. The study highlighted that the adoption of smart technologies and associated competencies will be critical for future HR professionals. Moreover, it was noted that current HR strategies must evolve to accommodate these technological advancements to still be effective.
Study (Nayebpour & Sehhat, 2023) The study found that the competency model for human resource managers includes key themes such as paradoxical thinking and IT knowledge. These competencies positively influence managerial effectiveness and organizational performance. Additionally, it was revealed that HR managers with technical and engineering backgrounds at the undergraduate level
Study (Băndoi et al., 2022) The study found that compulsory HR competencies significantly affect cyber security and organizational risk management. Additionally, the impact of these competencies on improving or diminishing cyber security capabilities is large. The study emphasized that enhancing HR competencies is crucial for managing organizational and cyber risks effectively.
Study (Masiko et al., 2022) The study found that technology competencies and human resources have a positive and significant influence on productivity in the petroleum industry. The research revealed that technology competencies have a greater impact on productivity compared to HR competencies. Additionally, the study used structural equation modelling to set up these relationships. and a shift to HR management at the graduate level are better positioned to excel in their roles.
The study by Sari, Anwar, & Kurniawan (2022) aimed to examine and analyze the effect of human resource competence on the performance of micro-enterprises in Alewadeng Village. Data were collected by distributing questionnaires to 49 entrepreneurs in the village. The results indicated that human resource competence has a positive and significant impact on the performance of micro-enterprises, meaning that improving human resource competence contributes to enhancing business performance. Therefore, the study emphasizes the importance of investing in the development of human resource competencies to achieve better business outcomes.
After studying the earlier research and applying it to our topic "The Impact of Human Resources Competency on the Performance of Micro-Enterprises" at the Small Enterprise Development Agency, several research gaps have been found that require further exploration and investigation. Among the significant research gaps are:
- Not addressing and studying the topic of business success for the performance of Micro-sized startups regarding human resource efficiency practices, by applying to Enterprises Development Agency in particular.
- The scarcity of previous studies that addressed the relationship and impact between performance of Micro sized startups and human resource efficiency practices in general. The relationship between the two variables is not addressed by the application to the Enterprises Development Agency in particular.
- Therefore, the current study addresses this shortcoming by addressing the issue of analysing business success practices for the performance of Micro-sized startups with efficient human resources by applying them to Enterprises Development Agencies in Egypt.
One of the most significant aspects that distinguishes this study from previous studies.
As a result, a research gap emerges in the applied field due to the insufficient examination of the impact of human resource competencies on the performance of micro-sized startups, particularly in how these companies face challenges related to limited resources and efficiently manage performance. This gap reflects the absence of studies that link human resource competencies to the success of micro-sized startups in a challenging environment. Based on this analysis, the current study will focus on exploring the impact of human resource competencies on the performance of these companies, with an emphasis on enhancing employees' managerial, personal, and intellectual capabilities to increase their effectiveness and achieve sustainable success.
In light of the increasing challenges related to enhancing competitive advantage and navigating globalization, companies are increasingly focused on defining, articulating, and implementing competencies. As the 20th century progressed, the demand for complex skills became essential not only for human resource managers but also for other roles, as specific competencies were necessary for optimal task execution (Bordbar et al., 2021).
A competency model is a systematic process for identifying competencies at both individual and organizational levels. This model has emerged as a valuable approach for responding adeptly to the ever-evolving business environment, helping to align managerial job requirements with organizational strategies (Kashtanova et al., 2021).
In today's competitive business landscape, where constant changes are the norm, employee performance stands out as a critical factor for gaining a competitive advantage, necessitating ongoing improvement (Cihan & Gurol, 2020). The efficiency-focused approach to human resource management is central to essential human resource concepts such as selection, performance appraisal, training and development, management, and reward systems.
To effectively fulfill their new roles and strategies, human resources must acquire new competencies, which can be achieved through learning, language, logic, and understanding HR business concepts (De Mauro et al., 2018). Given the human element's presence in all organizational stages, effective human resource management can significantly influence an organization's success by developing plans and systems for optimal resource utilization (Chen et al., 2017). Long (2008) described HR competencies in terms of business knowledge, strategic contribution, HR delivery, personal credibility, and HR technology.
Key drivers for adopting models focused on human resource efficiency include technological advancements, diversity, globalization, rapid market changes, the need for greater productivity, the increasing importance of knowledge capital, the shift to flat organizational structures, clarified job expectations, the use of multidimensional assessment methods, and the growing complexity of career planning (Sehhat et al., 2023). Given these dynamics, it is essential for managers to develop key and specialized competencies to effectively navigate their roles.
Human resources competencies are crucial for the success and sustainability of organizations, as they enhance both individual and organizational performance. Recruiting and developing employees with the right skills leads to improved individual performance and strengthens collaboration within teams (Holmes et al., 2018). This integration boosts organizational performance by enhancing communication and teamwork (Sehhat et al., 2023). Moreover, focusing on developing skilled human resources improves the quality of products and services, helping organizations achieve a competitive advantage (Bordbar et al., 2021).
Enhancing employee satisfaction is essential, as it is closely linked to the quality of the work environment and effective human resource management (McDonnell and Sikander, 2017). A transparent atmosphere that values individual contributions and provides professional development opportunities fosters trust and loyalty (Kashtanova et al., 2021). Additionally, integration and collaboration among teams enhance organizational performance and help achieve strategic objectives (Ulrich and Dulebohn, 2015). By nurturing an interactive environment, employees can exchange ideas, enriching creativity (Cunha et al., 2020). Furthermore, HR competencies allow organizations to develop employees' skills in modern technology and adapt to economic changes through continuous training aligned with market trends (Raisch & Krakowski, 2021). This focus on transformation-based HR competencies enhances efficiency and productivity in a volatile market.
There is no specific definition for this concept yet because the meaning of a startup company is completely comprehensive. To begin with, it can be defined as a company working to address an issue in which the solution is not clear, and success is not guaranteed.
It is also: a company with a short operating time, which is often newly established, and is in growth and searching for markets. These companies are often funded initially by their entrepreneurial founders by resorting to their personal savings or their families, friends and acquaintances, in an effort to gain profit by creating a product or service they perceive to be in high demand, and due to limited revenues or high costs, most of these small-scale operations are not sustainable in the long term without additional funding from venture capitalists (Iqbal, et al, 2023). Entrepreneurial Emerging businesses can be described as the newest version of inventors, as they tend to work on business models that can be repeated and expanded, unlike small companies that prefer to work on a fixed business model, and the company appears as an endeavor to address a problem in a creative way, entrepreneurs tend to favor personal and family funding, by providing innovative solutions that have not been tried before. Solutions that have the power to change the world.
Understanding the reasons for startup success and failure is crucial for guiding entrepreneurs and investors (Tan Le, 2019). Successful startups typically feature an innovative idea, a qualified team, a solid execution plan, and effective resource utilization (Ngoma et al., 2017). In contrast, challenges such as inadequate funding and a poor understanding of market dynamics often lead to failure (World Bank, 2013).
Factors like religion, race, and education influence funding patterns; for example, Muslim entrepreneurs often prefer Sharia-compliant financing (Fathonih et al., 2019; Tripalupi, 2019), while funding preferences vary by race. Additionally, funding patterns differ across investment phases, from pre-seed to initial public offerings (Rehm, 2016).
The relationship between human resource efficiency and the performance of micro startups is crucial for building strong foundations for success and continuity in the market (Sari & Sari, 2022). Technical skills and experience are vital in determining efficiency and performance, with high skills in technology, engineering, design, and software development essential for innovative product design and service delivery, helping to attract customers and build a positive market reputation (Mathew et al., 2021). Strong technical ability also enables teams to tackle complex challenges and promotes an environment of creativity through creative idea exchange (Ngoma et al., 2017). Leadership enhances efficiency by guiding teams towards achieving goals, with effective leaders supporting and motivating teams for outstanding performance (Tan Le, 2019). Participation and integration foster a sense of belonging and cooperation, enhancing teamwork and contributing to a strong workforce (Subramony et al., 2018). Training and development are essential for improving efficiency, as they enhance employees' skills and competency, promoting teamwork and creative thinking (Mathew et al., 2021).
From the previous table No. (1), we find that the most available dimensions of HR.C are respectively: The first (Achievement Competencies) the Mean is (3.98) the rate is (79.63%), the second (Administrative Competencies) the Mean is (3.65) the rate is (72.95%)., The third (Mental Competencies) the Mean is (3.37) and a rate of (67.40%), The fourth (Personal Effectiveness Competencies) the Mean is (3.30) the rate is (66.05%)
Therefore, there is a high availability of HR.C dimensions, and opinions tend to agree, with the overall average of the dimensions being (3.67), with an agreement rate (73.33%).
we find that the total average variable of (Performance of Micro-Sized Startups(P.MS)) is (3.67) and with an agreement rate of (73.36%), and this indicates the Performance of Micro-Sized Startups(P.MS) was a neutral degree in Enterprises Development Agency, and that opinions tend towards agreement on the expressions of this dimension, where It turned out that the most available Statements in measuring after (Performance of Micro-Sized Startups(P.MS)) came first in a response indicating agreement, Statement: (14) with Mean of (4.35), and that the least available statement came in last place with a response indicating agreement Statement: (4) With Mean of (2.69).
| N | Dimensions | Mean | Percentage% | Std. |
|---|---|---|---|---|
| 1 | Achievement Competencies. | 3.98 | 79.63% | 0.61 |
| 2 | Administrative Competencies. | 3.65 | 72.95% | 0.73 |
| 3 | Mental Competencies. | 3.37 | 67.40% | 0.83 |
| 4 | Personal Effectiveness Competencies. | 3.30 | 66.05% | 0.92 |
| 5 | Total (HR.C) | 3.67 | 73.33% | 0.63 |
| Total (P.MS) | 3.67 | 73.36% | 0.703 |
- It is expected that there is a statistically significant effect of Human Resources Competency on the Performance of Micro-Sized Startups in the Enterprises Development Agency.".
- To verify the Performance of Micro-Sized Startups of the model and decide the validity of the hypothesis, this was tested through a set of criteria for judging the Quality of the model shown in the following table.
- In this structural model, the values are recorded as X²/df =2.482, NFI=0.960& CFI = 0.968, and RMSEA = 0.047. Because there is an adequate fit, as shown by these indices, between the hypothesized model and the data collected. A review of the path coefficients could go ahead for the structural model.
- The hypothesis of this study was tested using structural equation modelling via SMARTPLS14 as presented (2) The structural model assessment as shown in the Table writes down the hypothesis tests. Human Resources Competency significantly predicts the Performance of Micro-Sized Startups; hence, the main hypothesis is accepted (β=.863, p<0.001)
The R² value shows the amount of variance of dependent variables which is explained by the independent variable. Hence, a larger R² value increases the predictive ability of the structural model. It is crucial to ensure that the R² values should be high enough for the model to achieve a minimum level of explanatory power. Table. (3) Shows the result of R² from the structural model and shows the R²=0.745 values are high enough for the model to achieve an acceptable level of explanatory power.
| Indicator | Value | Acceptance level |
|---|---|---|
| Normed Chi-Square | 2.593 | between (2,5) |
| The Goodness-of-Fit statistic (GFI) | 0.911 | between (0,1) |
| Adjusted Goodness of Fit Index (AGFI) | 0.935 | between (0,1) ≥ 0.90 |
| Normed Fit Index (NFI) | 0.960 | between (0,1) ≥ 0.95 |
| The Comparative Fit Index (CFI) | 0.968 | between (0,1) ≥ 0.95 |
| RMSEA | 0.047 | between (0.01,0.08) |
| Exogenous Construct | Path | Endogenous Construct | Estimate B (Path Coefficient) | S. E | Z-Test | R2 | p-Value |
|---|---|---|---|---|---|---|---|
| Performance of Micro-sized Startups | ðð | Achievement Competencies. | 0.674 | 0.065 | 4.505 | 0.745 | **** |
| ðð | Administrative Competencies. | 0.845 | 0.099 | 9.765 | **** | ||
| ðð | Mental Competencies. | 0.833 | 0.126 | 8.820 | **** | ||
| ðð | Personal Effectiveness Competencies. | 0.818 | 0.123 | 8.347 | **** |
***p<.001, **p<.01*p<.05
- "It is expected that there is a statistically significant effect of Achievement Competencies on the Performance of Micro-Sized Startups in the Enterprises Development Agency.".
- To verify the quality of the model and decide the validity of the hypothesis, this was tested through a set of criteria for judging the quality of the model shown in the following table.
- In this structural model, the values are recorded as X²/df = 3.898, NFI=0.969& CFI = 0.957, and RMSEA = 0.051. Because there is an adequate fit, as shown by these indices, between the hypothesized model and the data collected. A review of the path coefficients could go ahead for the structural model.
- The hypothesis of this study was tested using structural equation modelling via SMARTPLS14 as presented (4) The structural model assessment as shown in the Table writes down the hypothesis tests. Achievement Competencies significantly predict The Performance of Micro-Sized Startups, hence, H1 is accepted (β = 1.331, p<0.001)
Table. (5) shows the result of R² from the structural model and shows that all the R²=0.580 values are high enough for the model to achieve an acceptable level of explanatory power.
| Indicator | Value | Acceptance level |
|---|---|---|
| Normed Chi-square | 3.898 | between (2,5) |
| The Goodness-of-Fit statistic (GFI) | 0.933 | between (0,1) |
| Adjusted Goodness of Fit Index (AGFI) | 0.929 | between (0,1) ≥ 0.90 |
| Normed Fit Index (NFI) | 0.969 | between (0,1) ≥ 0.95 |
| The Comparative Fit Index (CFI) | 0.957 | between (0,1) ≥ 0.95 |
| RMSEA | 0.051 | between (0.01,0.08) |
| Exogenous Construct | Path | Endogenous Construct | Estimate B (Path Coefficient) | S. E | Z-Test | R2 | p-value |
|---|---|---|---|---|---|---|---|
| Performance of micro- sized Startups | ðð | Achievement Competencies. | 1.331 | 0.296 | 4.496 | 0.580 | *** |
***p<.001, **p<.01*p<.05
- "It is expected that there is a statistically significant effect of Administrative Competencies on the Performance of Micro-Sized Startups in the Enterprises Development Agency".
- To verify the quality of the model and decide the validity of the hypothesis, this was tested through a set of criteria for judging the quality of the model shown in the following table.
- In this structural model, the values are recorded as X²/df = 3.828, NFI=0.955& CFI = 0.972, and RMSEA = 0.053. Because there is adequate fit, as shown by these indices, between the hypothesized model and the data collected. A review of the path coefficients could go ahead for the structural model.
Table (6) The structural model assessment as shown in the Table indicates the hypothesis tests. Administrative Competencies significantly predict The Performance of Micro-Sized Startups, hence, H2 is accepted (β = 0.845, p<0.001)
Table (7) shows the result of R² from the structural model and indicates that all the R²=0.704 values are high enough for the model to achieve an acceptable level of explanatory power.
| Indicator | Value | Acceptance Level |
|---|---|---|
| Normed Chi-Square | 3.828 | between (2,5) |
| The Goodness-of-Fit statistic (GFI) | 0.919 | between (0,1) |
| Adjusted Goodness of Fit Index (AGFI) | 0.933 | between (0,1) ≥ 0.90 |
| Normed Fit Index (NFI) | 0.955 | between (0,1) ≥ 0.95 |
| The Comparative Fit Index (CFI) | 0.972 | between (0,1) ≥ 0.95 |
| RMSEA | 0.053 | between (0.01,0.08) |
| Exogenous Construct | Path | Endogenous Construct | Estimate B (Path Coefficient) | S. E | Z-Test | R2 | p-value |
|---|---|---|---|---|---|---|---|
| ðð | Administrative Competencies. | 0.845 | 0.131 | 6.435 | 0.704 | **** |
***p<.001, **p<.01*p<.05
- " It is expected that there is a statistically significant effect of Mental Competencies on the Performance of Micro-Sized Startups in the Enterprises Development Agency".
- To verify the Performance of Micro-Sized Startups of the model and determine the validity of the hypothesis, this was tested through a set of criteria for judging the Performance of Micro-Sized Startups of the model shown in the following table.
- In this structural model, the values are recorded as X²/df = 4.302, NFI=0.985& CFI = 0.977, and RMSEA = 0.027 Because there is adequate fit, as indicated by these indices, between the hypothesized model and the data collected. A review of the path coefficients could proceed for the structural model.
Table (9) shows the result of R² from the structural model and indicates that all the R²=0.547 values are high enough for the model to achieve an acceptable level of explanatory power.
| Indicator | Value | Acceptance level |
|---|---|---|
| Normed Chi-square | 4.302 | between (2,5) |
| The Goodness-of-Fit statistic (GFI) | 0.939 | between (0,1) |
| Adjusted Goodness of Fit Index (AGFI) | 0.927 | between (0,1) ≥ 0.90 |
| Normed Fit Index (NFI) | 0.985 | between (0,1) ≥ 0.95 |
| The Comparative Fit Index (CFI) | 0.977 | between (0,1) ≥ 0.95 |
| RMSEA | 0.027 | between (0.01,0.08) |
| Exogenous Construct | Path | Endogenous Construct | Estimate B (Path Coefficient) | S. E | Z-Test | R2 | p-value |
|---|---|---|---|---|---|---|---|
| ðð | Mental Competencies | 2.426 | 0.843 | 2.877 | 0.547 | *** |
***p<.001, **p<.01*p<.05
- "It is expected that there is a statistically significant effect of Personal Effectiveness Competencies on the Performance of Micro-Sized Startups in the Enterprises Development Agency".
- To verify the Performance of Micro-Sized Startups of the model and determine the validity of the hypothesis, this was tested through a set of criteria for judging the Quality of the model shown in the following table.
- In this structural model, the values are recorded as X²/df =3.609, NFI=0.974& CFI = 0.968, and RMSEA = 0.061. Because there is adequate fit, as indicated by these indices, between the hypothesized model and the data collected. A review of the path coefficients could proceed for the structural model.
Table (11) shows the result of R² from the structural model and indicates that all the R²=0.619 values are high enough for the model to achieve an acceptable level of explanatory power.
| Indicator | Value | Acceptance Level |
|---|---|---|
| Normed Chi-square | 3.609 | between (2,5) |
| The Goodness-of-Fit statistic (GFI) | 0.915 | between (0,1) |
| Adjusted Goodness of Fit Index (AGFI) | 0.922 | between (0,1) ≥ 0.90 |
| Normed Fit Index (NFI) | 0.974 | between (0,1) ≥ 0.95 |
| The Comparative Fit Index (CFI) | 0.968 | between (0,1) ≥ 0.95 |
| RMSEA | 0.061 | between (0.01,0.08) |
| exogenous construct | Path | endogenous construct | Estimate B (path coefficient) | S. E | Z-Test | R2 | p-value |
|---|---|---|---|---|---|---|---|
| ðð | Personal Effectiveness Competencies | 0.600 | 0.086 | 6.980 | 0.619 | 0.471 |
***p<.001, **p<.01*p<.05
The study reached several results that can contribute to solving the study problem, answering its questions, and testing its hypotheses. The researcher has categorized the results of the field study according to the variables set by the study in examining the impact of Human Resources Competency on the Performance of Micro-sized startups, so that the benefit is clearer, especially when formulating appropriate and applicable recommendations for each variable, as follows:
The current study concluded that there is a high availability of Human Resources Competency dimensions, and opinions tend to agree. It was found that the most available dimensions of Human Resources Competency are respectively: The first (Achievement Competencies) the Mean is (3.98), the second (Administrative Competencies) the Mean is (3.65), the third (Mental Competencies) the Mean is (3.37), the fourth (Personal Effectiveness Competencies) the Mean is (3.30). The availability ratio for each dimension of Human Resources Competency was as follows:
The study concluded that interest in Achievement Competencies as one of the Human Resources Competency Dimensions was a high degree in Enterprises Development Agency in Alexandria Governorate and that opinions tend towards agree on the expressions of this dimension. The findings suggest that achievement competencies are evaluated based on the results of tasks assigned to employees. The management team identifies these competencies by monitoring the development of individual performance.
The study concluded that interest in Administrative Competencies as one of the Human Resources Competency Dimensions was high degree in Enterprises Development Agency in Alexandria Governorate and that opinions tend towards agree on the expressions of this dimension. The study findings revealed the importance of virtual communication for HR leaders in enhancing their management competencies. The administration promotes team cooperation by providing opportunities to develop administrative competencies within the framework of human resources competencies.
The study concluded that interest in Mental Competencies as one of the Human Resources Competency Dimensions was high degree in Enterprises Development Agency in Alexandria Governorate and that opinions tend towards agree on the expressions of this dimension. The findings indicate that mental competencies are evaluated using advanced assessment tools to measure creative thinking, innovation, and similar attributes in the environment. The mental competencies of the functional team are developed by providing training courses aimed at enhancing mental and innovative skills.
The study concluded that interest in Personal Effectiveness Competencies as one of the Human Resources Competency Dimensions was a high degree in the Enterprises Development Agency in Alexandria Governorate and that opinions tend towards agree on the expressions of this dimension. The findings revealed that the company develops its employees' personal effectiveness competencies by providing training courses aimed at enhancing personal organization skills and achieving individual goals. Periodic assessments of employees' personal effectiveness competencies are conducted to determine their progress in improving time management and personal motivation.
The current study concluded that there is a high availability of performance among micro-sized startups, and opinions tend to agree. The findings indicated that support is provided for marketing and promoting to enhance the vision and fame of startups and micro-enterprises. Additionally, the Agency offers consultation and counselling services to improve the performance of startups and micro-enterprises. Financial advisory services are provided to enhance money management, and training programs are offered to develop leadership and management skills in these startups and micro-enterprises.
The study concluded that among the dimensions of Human Resources Competency, Administrative Competencies emerge as the most impactful on the Performance of Micro-Sized Startups (B = 0.845, p < .001), followed closely by Mental Competencies (B = 0.833, p < .001), and Personal Effectiveness Competencies (B = 0.818, p < .001). Achievement Competencies also have a significant influence (B = 0.674, p < .001). These findings underscore the critical role of comprehensive administrative skills, cognitive abilities, and personal effectiveness in driving the performance and success of micro-sized startups within the Enterprises Development Agency. As for the effect of each dimension separately, it was as follows:
The study concluded that Achievement Competencies have a significant impact on the Performance of Micro-Sized Startups, with an estimate B of 1.331 (p < .001). This result, supported by a Z-Test value of 4.496 and an R² of 0.580, indicates a strong and statistically significant effect of Achievement Competencies on startup performance, emphasizing the importance of goal-oriented skills and accomplishments in enhancing the success of micro-sized startups.
The study concluded that Administrative Competencies have a substantial impact on the Performance of Micro-Sized Startups, with an estimate B of 0.845 (p < .001). This result, supported by a Z-Test value of 6.435 and an R² of 0.704, demonstrates a strong and statistically significant effect, highlighting the importance of effective administrative skills in enhancing the success and performance of micro-sized startups.
The study concluded that Mental Competencies significantly impact the Performance of Micro-Sized Startups, with an estimate B of 2.426 (p < .001). This result, supported by a Z-Test value of 2.877 and an R² of 0.547, indicates a strong and statistically significant effect of cognitive and intellectual skills on startup performance, emphasizing the importance of mental competencies in enhancing the success of micro-sized startups.
The study concluded that Personal Effectiveness Competencies significantly impact the Performance of Micro-Sized Startups, with an estimate B of 0.600 (p < .001). This result, supported by a Z-Test value of 6.980 and an R² of 0.619, indicates a strong and statistically significant effect of personal effectiveness skills on startup performance, highlighting the importance of these competencies in enhancing the success of micro-sized startups.
From the point of view of the results reached by the study. The researcher suggested the following regarding the impact of human resources efficiency on the performance of emerging micro-companies:
| Study Result | Recommendation | Tasks | Responsibility |
|---|---|---|---|
| The results indicate a high level of interest in Achievement Competencies (as one of the dimensions of Human Resources Competencies). | Our monitoring procedures provide an opportunity to assess the achievement competencies of employees. | Organize quarterly evaluation sessions for employees to assess their performance and determine the extent to which they achieve the required competencies. | Human Resources Department, Performance Management Department. |
| The results indicate a high level of interest in Administrative Competencies (as one of the dimensions of Human Resources Competencies). | Estimating the competencies of administrative leaders in directing and organizing work. | Estimate the competencies of administrative leaders in directing and organizing work through structured performance evaluations. | Human Resources Department, Training and Development Department. |
| The results indicate a high level of interest in Mental Competencies (as one of the dimensions of Human Resources Competencies). | The management is enhancing the mental environment in remote work by launching motivational initiatives that contribute to enhancing the mental and creative competencies of employees. | Enhance the mental environment in remote work by launching motivational initiatives to boost employees' mental and creative competencies. | Human Resources Department, Performance Management Department. |
| The results indicate a high level of interest in Achievement Competencies (as one of the dimensions of Human Resources Competencies). | Our monitoring procedures provide an opportunity to assess the achievement competencies of employees. | Organize quarterly evaluation sessions for employees to assess their performance and determine the extent to which they achieve the required competencies. | Human Resources Department, Performance Management Department. |
| Study Result | Recommendation | Tasks | Responsibility |
|---|---|---|---|
| The results indicate a high level of performance among micro-sized startups. | Provide support and assistance through the Enterprise Development Agency to enhance the performance of emerging and micro-enterprises. | Implement comprehensive support programs that include financial aid, business development services, and networking opportunities tailored for micro-sized startups. | Enterprise Development Agency, Business Support Services Department. |