Human Resource Development Strategy and Institutional Capacity for Enterprise Development in Timor-Leste: A Case Study of IADE

Abstract

Human resource development (HRD) has become a central issue in enterprise development, particularly in developing and post-conflict economies, where business growth is often constrained by limited managerial capacity, weak entrepreneurial skills, and insufficient institutional support. This study examined how HRD strategy and institutional capacity support enterprise development in Timor-Leste through a case study of the *Instituto de Apoio ao Desenvolvimento Empresarial* (IADE). Using a qualitative single-case study design, data were collected through semi-structured interviews, observation, and document analysis. The findings showed that IADE’s HRD strategy functioned as both an internal capacity-building mechanism and an external enterprise support instrument. IADE supported entrepreneurs through training, mentoring, consultancy, business assistance, incubation services, business registration support, and promotional activities. However, the effectiveness of these programs was constrained by limited staff development, insufficient budget allocation, a shortage of qualified trainers, and weak post-training monitoring systems. The study also found that enterprise development outcomes depended not only on the availability of training programs but also on staff competence, trainer availability, continuity of mentoring, and entrepreneurs’ managerial commitment. This study contributes to the HRD and enterprise development literature by highlighting the role of public institutional capacity in supporting enterprise development in resource-constrained, post-conflict economies.