Purpose – People are important in any business and this is especially so in small entrepreneurial firms in which tight margins can limit staff numbers and growth. These firms are seeking sustainable competitive advantage through enhanced employee performance. However, this is tightly dependant on competence and day-to-day management practices of the entrepreneurs. The purpose of this paper is to explore management practices in entrepreneurial firms and to study how entrepreneurs’ human capital developed over the years helps them improve business performance and growth. Design/methodology/approach – This paper draws upon 15 interviews with entrepreneurs and their employees and subsequent data collected in case studies. The interview approach was adopted in order to gain data that would provide a clear picture of day to day practice and enable comparison between the views and attitude of the entrepreneurs and the perception and experience of the employees. Originality/value – Though it is widely believed that intangibles, such as company image, networking and the external environment have an important impact on company sustainability and competitive advantage (Sveiby, 2001; Roos et al., 2005), competence and attitude of entrepreneurs as well as their relationships with employees are a key factor affecting firm performance. Critical to these factors is the human capital of the entrepreneur him/herself which also impacts on the management on intangibles. Individuals accumulate human capital over their lifetime. Its comprising elements include not only formal knowledge, skills, competence and abilities, but tacit knowledge and experience gained over the years. Research findings confirm that entrepreneurs through their attitude, way of doing things and day-to-day practice, and thus their human capital, impact on firm performance and growth. Practical implications – The outcomes from this study can inform further research and contribute to improve guidelines on good entrepreneurial practices on strategy management.