Effective Utilization and Development of Labor Resources in Small Business Entities

The article analyzes the issues of effective utilization and development of labor resources in small business entities. The study examines the impact of employees’ skill levels, motivation systems, work productivity, and working conditions on labor potential. This study has revealed that the labor resources management in small businesses should be approached not only according to the theoretical principles but also according to the experience that is gained in other countries. The research concludes that the overall performance becomes significantly better when employers focus on the personal capabilities that employees have, on the work motivation and the development of their skills. In this respect, routine training and professional development processes turn into a part and parcel of daily management instead of an obligatory regulation. The analysis also demonstrates that investments in human capital have a direct impact on the long-term development of small businesses. At the same time, the use of modern technologies in human resource management helps simplify routine processes and allows managers to focus more on strategic decisions Consequently, the steady growth of the labor resources promotes the growth in productivity and enhances the economic sustainability and competitiveness of the small enterprises in the long term.