Human capital theory has strong influence to human competency[12-13] posits that individuals with more or
higher-quality human capital perform better at executing relevant tasks, so human capital pertains to individual
knowledge and abilities that allow for changes in action and economic growth. Human capital may be developedthrough formal training and education aimed at updating and renewing an individual's competencies in order to
do well in society. Applying this theory to SME entrepreneurs, one expects a positive association between SME
entrepreneurs' human capital and their performance and, subsequently, between their performance and their
career success [14]. Cardon[15] argued that greater entrepreneurial human capital enhances the productivity of
SME entrepreneurs, which results in higher firm performance. Higher productivity levels of SME entrepreneurs
means that business owners are more efficient in organizing and managing operations or are able to attract more
customers, negotiate better contracts with suppliers, and raise more capital from investors. From this, it can be
argued that human capital increases entrepreneurial performance and plays an important role in the market
selection process