Human Resources Management Demands and Challenges in Small and Medium Scale Enterprises

The pivotal role of employees, and their effective management for small business survival, cannot be overemphasized, as it has been found that newer and smaller enterprises rely more heavily on individual employees' contribution to the success of their organization. This review is exploratory in nature. Its objective is to highlight the special human resource needs of small and medium businesses, and identify challenges to effective HRM in such businesses. Data used were mainly from the secondary sources. Evidence from available literature however indicates that there is a dearth of research on the HRM/Entrepreneurship interface. To this end, the government has been making efforts to nurture entrepreneurial development, by formulating policies and establishing agencies to create an enabling environment for the operation of these businesses. However, many small businesses find it difficult to survive and end up closing shop, after a short while. Findings reveal that business size, priorities, informality, and nature of the entrepreneur, were peculiar challenges that hindered effective HRM in small businesses. The paper concluded by advocating the entrenchment of effective HRM practices in small business operations, as a way of ensuring their survival, thereby facilitating sustainable entrepreneurial development in Nigeria.