Vol.5, No. 1, 2009 ISSN 1822-3346 Economics and Rural Development 24 TENDENCIES OF EMPLOYMENT OF HUMAN RESOURCES IN ENTREPRENEURSHIP IN LATVIA Lāsma Līcīte, Aina Dobele Latvia University of Agriculture The paper focuses on the characteristics of human resources in entrepreneurship based on two aspects – a human being and his/her capacities. The aim of the survey is to study and assess the significance and tendencies for the use of human resources in Lat- via. In order achieve the aim authors present the historical development of human resources from the ancient times to nowadays. It shows the increasing importance of human resources in the knowledge economics. In the survey the authors analyze the use of human resources in the Latvian production (manufacturing) sector. According to the survey on the availability and the use of human resources in the Latvian economy, the demographic situation in the country has been unfavourable over the recent years. There is a trend to reduce the number of employees. The highest number of employed persons is observed in agriculture and forestry, manufacturing, trade, and equipment repair. The following initial sources of information and materials were used: the data of the Central Statistical Bureau, the laws of the Republic of Latvia, special literature and other materials. The monographic descriptive method, the method of analysis and synthesis, and statistical research methods were applied for the purpose of the survey. Key words: human resources, business, employees, employers, skills. JEL codes: J21, J24 Introduction 12 The understanding of the importance of human re- sources has changed in the course of economic and social development. The society of the 21 st century is undergoing the period of changes – the industrial age has passed and the age of the knowledge society began. The process of changes during the Industrial age was slower; however nowadays the development of technological innovations is more rapid, the impact of globalisation increases, and the business environment changes rapidly. It is essential to recognize the main factors affecting economy so that the national economy could develop under the current eco- nomic crisis and conditions of dynamic competitiveness. The Latvian National Development Plan for 2007 – 2013 (adopted in 2006) identifies human resources as the main resource. A human being as a creator and carrier of knowl- edge becomes the key driving force and beneficiary of the development. It means that human resources are the big- gest value of the country. Since the economic cycle is based on business and business is based on knowledge, a human being is a source of knowledge. Any business idea 1 Mg. oec., lecturer Lāsma Līcīte Fields of scientific interest: human resources and management Mailing address: Faculty of Economics, Latvia University of Agriculture, Svetes 18, Jelgava, Latvia, Zip code LV-3001. E-mail: lasma.licite@llu.lv 2 Dr. oec., associated professor Aina Dobele Fields of scientific interest: economic resource Mailing address: Faculty of Economics, Latvia University of Agriculture, Svetes 18, Jelgava, Latvia, Zip code LV-3001, E-mail: aina.dobele@llu.lv and any resources may be transformed only with a help of work and knowledge of people. The issue on the use of human resources becomes par- ticularly topical with a view to overcoming the downturn of the national economy. Rapid development and intro- duction of modern technologies in workplaces require continuous modification and improvement of knowledge, skills and abilities determined by the requirements for the use of human resources. Recently several researchers in Latvia have studied the issues related to employment and unemployment of human resources. Hence I. Dovladbekova (2007) and E. Eteris (2007) have based their research on the analysis of the labour market – the unemployment rate and the share of population under working age in the EU and Latvia. The surveys executed by J. Saulītis (2007) and D. Barānova (2007) describe the trends for the development of employment in Latvia, as well as aims and priorities of the employment policy. A. VilciĦa’s (2000) study is related to the socio-demographic situation in Latvia. I. Kalve (2007) analysed the development of human resources in entrepreneurship based on the review of the relationship between employers and employees. I. Čurk- ina (2003), U. OzoliĦa (2007) and M. Pelše (2004, 2007) characterised the role of human capital in the economic growth by highlighting the impact of education on the development of human resources. Professor V. Bikse (2004, 2007) studied the impact of education on the devel- opment of human resources and emphasised the impor- tance of entrepreneurial skills. Human resources are often analysed/treated as man- power; however such a characteristic is incomplete, since