FEATURE
PAPER
Human Resource
Management in Small Business: Does Size Matter?
The
following paper was presented at the 2007 Association of
Small Business and Entrepreneurship (ASBE)
. It was written
by Paul Dunn and Larry E. Short of the University of Louisiana
at Monroe.
Abstract
The purpose of this research was to determine when in the
life of the firm, small business owners consider human resource
management as important and whether they feel the need assistance.
From a probability sample of 165 Louisiana small business owners,
we have determined that small business owners with eleven or
more feel that human resource management is more important
and that they need assistance in performing these function
than small business owners with 10 or fewer employees. Some
suggestions for providing that assistance are given.
Introduction
Human resources
management has received much attention in the general management
literature, but most of that literature
is generic and/or related to larger firms. Human resource management
in small businesses has been given little attention. Small
business management textbooks usually discuss human resources
management and leadership only in a general way suggesting
that these topics are important and small business owners/managers
should practice good personnel management and leadership. (Longenecker,
Moore, & Petty, 2000; Carland & Carland, 1998; and
Scarborough, 2006.)
Most start-up small
business owner/managers are initially preoccupied with getting
the finances to start the business
and marketing or producing their firm’s products or services.
At some point in the existence of the firm, human resources
management becomes a concern. We are interested in determining
how important human resource management is to small businesses
and at what point in their growth does that concern arise.
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the Entire Paper...
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Marketing
Research in American Diversity
Hispanics and Asians
began immigrating to the United States in large numbers after
World War II and experienced faster
growth in size and buying power than other ethic groups.
It is well noted that the three main ethnic minority groups
in the United States—African Americans, Hispanic Americans,
and Asian Americans—exhibit different consumption patterns
from Caucasians; differences exist among the three groups
as well.
African Americans
Prior to desegregation
in the United States, African Americans encountered injustice
regarding goods and appearances. In
response to bigotry, there were a series of boycotts of white-owned
stores in the early 1960s by many in the African American
community.
The boycotts put pressure on merchants to eliminate racially
unequal treatment. Slogans such as “Don’t Buy
Segregation” (Morris
2002) were used in protests. African American protesters
wanted more employment opportunities, better wages, and more
respectful
treatment for shoppers.
Sabir and Brown
(2005) reported that African American households experienced
a decline in earning during times of economic
recession, but they have made for
it during economic recoveries since the 1980s. Furthermore, during the late
1990s, African Americans and Caucasians realized substantial
increases in family incomes.
During this period, employment rates rose dramatically for African Americans.
In 2000, reduced unemployment along with increased wages, contributed to higher
African American family incomes. Although family income ratios between African
Americans and Caucasians have increased throughout the past decade from 0.54
in 1990 to 0.58 in 2000, there is still a visible racial gap in family income
(Sabir and Brown 2005). This gap may be due to the fact that “African
Americans are less likely to be married and more likely to have families headed
by females
than are whites” (Sabir and Brown 2005, 30). This wealth gap between
African American and Caucasian family incomes has become larger since the 2001
recession.
(Sabir and Brown 2005)
The growing African American market is important to retailers.
In 2002, this market represented almost 37 million consumers,
or 12.7 percent of the U.S.
population of 288.4 million. This market is expected to increase to 13.3 percent
of the
population by 2010 and 13.8 percent by 2020. According to the 2000 U.S. Census,
the average African American consumer is approximately five years younger when
compared with the population mean of 35.5 years and age (Ahmed 2003).
The Selig Center for Economic Growth reported that 2004,
African American buying power rose $723 billion from $585
billion in 2000. The report projected that
African Americans could have $965 billion in buying power by 2009, up 203
percent from 1990 (Holmes 2005). The growing consumption
power of the African American
demographic makes it a viable market target for businesses.
The African American market is not homogenous and can be segmented,
as with any other market. Advertising content and products
should be selected accordingly.
African American women head one third of all family households, which makes
them
an important group to target (Ahmed 2003). They also influence the purchase
of expensive items such as cars and houses (Yin 2003).
The current generation of African Americans has achieved middle-
class status in larger numbers and aspires to a higher standard
of living. Appeals for success,
achievement, and aspiration of becoming more affluent resonate within this
group (Ahmed 2003). The rising education level among African Americans means
they are
likely to be demanding consumers.
Though price conscious,
African Americans are motivated by product quality and choice.
African Americans tend to be
fashion- conscious and choose to spend
money
on clothing and accessories. African Americans also show a strong preference
for branded goods, shop more frequently, shop more with friends, and enjoy
shopping, even when they do not purchase anything (Freifeld 2005, License!
2006). The Selig
Center for Economic Growth found that African Americans spend more than the
average U.S. consumer on telephone services, shoes, personal care products,
and children’s
apparel but less on healthcare, reading materials, entertainment, and household
textiles (Holmes 2005).
Many marketers believe marketing targeted at African Americans
remains most effective with the use of African American celebrities,
event sponsorship,
grassroots marketing
and community involvement as integral parts of the campaign (License! 2006).
Retailers also need to provide quality brand-name products that appeal more
to female customers. Brands developed for African American women include Black
Radiance
and Shades for You.
Hispanic Americans
The Hispanic population
is increasing much faster than the general U.S. population,
with Hispanic births accounting for
half of all U.S. births (Moran 2005). The
Hispanic Population increased from 21 million in 1990 to 40 million in 2003.
Hispanics have surpassed African Americans as the nation’s largest minority
group. The number of Hispanics will continue to grow, reaching nearly 73 million
or 20 percent of the U.S. population, by 2030 (U.S. Census Bureau 2004).
The Hispanic market is young; 35 percent is 18 years or younger
(Moran 2005). They are geographically concentrated, with
about half of all Hispanics living
in six U.S. cities- Chicago, Houston, San Antonio, Miami, New York, and Los
Angeles. Currently about 46 percent of Hispanics has a high school diploma
or some college
education. As their education levels increase, so does their demand for consumer
goods, as well as their purchasing power. From 1996 to 2001, the average Hispanic
household income rose 20 percent, from $27,977 to 33,565, while annual household
income of the U.S. population grew 6 percent from $39,869 to $42,228 (Brand
Strategy 2004).
The Hispanic market is fragmented and complex. While Mexicans
represent a large number of U.S. Hispanics, increasing numbers
come from Central and South America
and Caribbean countries such as Cuba and Jamaica (Brand Strategy 2004).
Language is an important characteristic of Hispanic consumers.
About 96 percent of Hispanics uses some Spanish at home and
86 percent uses it either at work
or at school (Humphreys 2004). Hispanics feel more included when retailers
employ bilingual associates and when they provide advertisements and store
signage in
Spanish (Humphreys 2004). As a result, they are more likely to patronize retailers
who make these cultural adaptations. In addition, many Hispanics equate the
ability of store employees to speak Spanish with friendliness (Humphreys 2004).
An important factor for retailers to keep in mind while marketing
to Hispanics and any other ethnic group is their level of
acculturation. The most acculturated
Hispanics might show characteristics similar to American consumers. Donthu
and Cherian (1994) found that Hispanics with a strong attachment to their traditions
and culture were more likely to seek Hispanic vendors, were more loyal to brands
preferred by family and friends, were influenced by targeted media, preferred
to shop as a family, and tended to be more concerned about monetary costs than
Hispanics with greater levels of acculturation. Eastlick and Lotz (2000) found
that first-generation Hispanic Americans were more attracted to retailers whose
merchandise reflects the Hispanic culture and showed greater preferences for
the use of Spanish-language media than other generational groups. To this Hispanic
consumer group, retailers could provide culturally oriented merchandise, Spanish-speaking
customer service personnel, and bilingual and culturally oriented advertising.
Retailers could also focus on providing value by offering competitive pricing,
coupons, promotions, and liberal return policies (Eastlick and Lotz 2000).
Retail initiatives
that target Hispanic consumers are becoming more popular
every year. Retailers should recognize Hispanic
cultural celebrations, such
as the
15th birthday (quinceañera) celebration for Hispanic girls (the equivalent
of the U.S. sweet sixteen). Brands are also important to Hispanic consumers,
which can be seen in the conspicuous consumption of brand logo merchandise.
Home Depot recently established a partnership with four national Hispanic organizations,
which was aimed at recruiting more Spanish-speaking employees (Associated Press
2005) as a means of targeting Hispanic consumers. Wal-Mart also caters to the
Hispanic market with their extended produce assortment, including peppers,
Mexican
cheeses, and meats preferred by Latinos (e.g., Chorizo Sausage and Milanesa
Beef).
Asian Americans
As of the 2000 U.S. Census there were approximately 10.2 million
Asian Americans in the United States. This number is expected
to increase 33 percent (mostly
through immigration) by 2010, resulting in more than 14 million Asian Americans.
This will make the Asian American population more than 5 percent of the total
U.S. population (Ahmed 2005). This market segment has annual purchasing power
of $254 billion: the average Asian American consumer is 30.1 years old, which
is younger than the general U.S. population. The average household size is
3.8 people, larger than the overall U.S. family mean of 3.2 people (Gitlin
2002).
Although the Asian American population is one third the size
of the Hispanic population, their buying potential of $397
billion is more than half that of
Hispanics ($686.3 billion) and is projected to reach $579 billion by 2010.
It is predicted that between 1990 and 2010, the gain in Asian American buying
potential
(near 400 percent) will be substantially great than the gains projected for
Caucasians (164 percent) and African Americans (222 percent) (Reyes2006).
Through many Asian
Americans are immigrants, this consumer group has the highest
annual household income and educational
attainment among the three major ethnic
group in the United States (Best’s Review 2005). Despite the relatively
small size of this ethnic population, many companies, particularly financial
serves and insurance, consider this market a very attractive consumer segment
because of their younger age, larger household size, and the higher proportion
of married households with children (Ahmed 2005). In addition, higher levels
of education and higher household incomes make them the prime targets for these
types of services. Further, there are unusually high rate of entrepreneurial
activity found in the Asian American market segment. Overall, Asian American
consumers share core values such as safety, education, and reverence for elders
and they value brand names and are brand-loyal and cost- conscious(Kaufman-Scarborough
2000).
Similar to the Hispanic
market segment, the Asian American market is fragmented,
since it is made up of people form
a variety of countries—China, the Philippines,
India, Vietnam, Korea, and Japan (Gitlin 2002). The diversity within the Asian
American population includes different countries of origin, different languages,
and different cultures. Also, acculturation rate and the length of time a family
has lived in the United States influence whether or not Asian Americans want
English – language messages.
Asian Americans
tend to be geographically concentrated in major metropolitan
markets in several states such as California,
New York, Hawaii, Washington,
D.C., Texas, Illinois, and Georgia. Therefore, they could be targeted along
geographic
lines. However, in an attempt to address each of these Asian subgroups, companies
need to invest in strategies that have a high likelihood of succeeding at the
local level. For example, using selective print or cable TV channels could
target a specific ethnic group. In cases, companies are reaching out to the
specific
ethnic groups by using language in the native tongue for media (Ahmed 2005).
In recognition of the importance of the Asian American buying potential, Wal-Mart
developed television, print, and radio advertisements in several languages
to appeal to this market (Troy 2005). Consumers’ testimonials about shopping
at Wal-Mart were aired in Cantonese, Mandarin, Vietnamese, and English.
Marketers are beginning to use multicultural marketing agencies
that specialize in understanding the Asian Market. The
number of such agencies rose from 3
in 1989 to more than 50 (Reyes2006). One of the first marketing firms in
the 1980s
that began targeting Asian consumers in the telecommunications, auto, retail,
and finance industries was Inter Trend. Some Inter Trend clients include
Northwest Airlines, JC Penney, States Farm Insurance, Western
Union, Toyota, and Verizon.
These companies were pioneers in targeting Asian immigrants with in-language
advertising, sales promotions, and out-reach during Asian holidays such as
the Vietnam Tet Festival and the Chinese New Year.
However, Asian Americans still receive a small percentage
of the marketing resources allocated for multicultural
marketing in the United States. Most
marketers in
2004 aimed at Hispanics ($3.9 billion) and African Americans ($1.7 billion)
and dedicated only $100 million to Asian Americans (Reyes 2006). It seems
that many
U.S. companies have left the Asian consumer market largely untapped (Reyes
2006). Marketers need more research to better understand the shopping behaviors
of the
Asian consumer.
Youn-Kyung
Kim, Pauline Sullivan, and Judith Cardona Forney.Experiential
Retailing.Copyright
2007.Fairchild Publications, Inc. Pgs. 34-37. (ISBN:
978-1-56367-399-3)
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International Forum of Management
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International Conference
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SWAM
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2008 Annual Meeting and 50th Reunion
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June 3-6, 2008 |
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Deadline:
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Society
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