International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online)

The Impact of Human Capital Development on the Financial Performance of Agricultural Enterprises: Application on Broiler Industry
Ali Al-Sharafat

This study aimed at examining the effect of human capital development on the financial performance of agricultural enterprises. Intentional sample of 119 broiler farms with almost equal capacity (20,000 birds for each) were selected to resemble the investigated broiler farms. A cross sectional survey using a 5-point Likert scale questionnaire was conducted on broiler farms included in the sample. The data covered human capital development related characteristics of farms operators (e.g. Level of training, education, level of exposure to agricultural extension activities, experience, education area and level of entrepreneurial skills). The financial performance indicators of the investigated broiler farms (e.g. return on assets, current ratio, debt to asset ratio and profit margin) were also covered. Multiple Regression (MR) and Pearson Product Moment Coefficient Analysis were conducted in this study to analyze the data. The results of the study revealed that among many human capital components, training, education, exposure to agricultural extension activities, experience, education area and entrepreneurial skills of farm operators have significant positive impact on the financial performance of the investigated broiler farms. The study recommend that attention must be drawn to the need for agricultural enterprises operators to key into the benefits of training, gaining experience, specialized education, participating in agricultural extension activities and developing their own entrepreneurial skills in order to positively impact the financial performance of any agricultural enterprise.

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