Entrepreneurs' human resources development

This study explores how entrepreneurs develop human resources within their firms. Based on an analysis of interviews with entrepreneurs and new venture consultants, we describe entrepreneurs' human resources development (HRD) approaches. We found that entrepreneurs rely on networking and creativity, aim to leverage employees' interest and competencies, and allow cocreation by employees; current requirements and situational conditions shape entrepreneurs' HRD decisions. To elaborate on our findings, we draw on the distinction between causation and effectuation. We describe an entrepreneurial HRD process that combines both a causation‐based and an effectuation‐based HRD approach.