Small and medium-sized businesses (SME) play a significant role in the economic and social progress of numerous nations worldwide. Globally, SMEs are performing better than ever in terms of GDP, employment creation, export, investment resource use, etc. Therefore, it is imperative to grow the SME sector. However, due to their high level of cyclicality, small and medium-sized businesses also carry a significant level of variance. Therefore, it may crucial for MSME to deal with the unpredictability having dependable and efficient employees who can support them during optimistic and worst times. Not only should this be done in the current era, when commerce transcends national borders SMEs work to obtain a competitive edge by tackling HR and their possible concerns. This paper focuses on different HRM-related problems that affect SMEs and highlights possible solutions to these problems. Furthermore, the studys conclusions will open up opportunities for academician study into the effects of HRM practices on businesses, SMEs, and policymakers.