Human Resource Management Practices and Entrepreneurial Performance of Small and Medium-Sized Enterprises (SMEs) In Ondo State, Nigeria

This study examines the relationship between Human Resource Management (HRM) practices and entrepreneurial performance of Small and Medium-sized Enterprises (SMEs) in Ondo State, Nigeria. SMEs play a vital role in employment generation, innovation, and economic diversification; however, their performance is often constrained by weak managerial systems, particularly in human resource practices. The study adopts a descriptive and explanatory survey design, targeting 1,470 registered SMEs across selected Local Government Areas. Using Yamane Taro’s (1967) formula, a sample size of 315 respondents was determined. Data were collected through structured questionnaires and analyzed using descriptive statistics, correlation, and multiple regression techniques with SPSS version 26. Findings reveal that recruitment and selection practices significantly influence entrepreneurial performance, with key indicators such as skill acquisition (t = 3.463, p < 0.01), job-role alignment (t = 3.447, p < 0.01), and effective hiring systems (t = 4.462, p < 0.01) contributing positively. The model was statistically significant (F = 82.16, p < 0.001) with R² = 0.451, indicating that 45.1% of variation in SME performance is explained by recruitment practices. Similarly, training and development practices demonstrated a strong positive effect on SME growth and productivity, accounting for 52% of performance variation (R² = 0.520; F = 53.470, p < 0.001). Structured training systems (t = 4.458, p < 0.01) and productivity improvement initiatives (t = 4.246, p < 0.01) emerged as critical drivers. The study concludes that effective HRM practices significantly enhance SME performance. It recommends the adoption of merit-based recruitment systems and continuous employee development to strengthen competitiveness and ensure sustainable business growth.