Human Resource Managers play a crucial role in managing employees, maintaining industrial relations, and ensuring smooth organizational functioning in Micro, Small and Medium Enterprises (MSMEs). However, HR managers in MSMEs face several challenges due to limited resources, informal organizational structures, and rapid changes in the business environment. These challenges often affect recruitment, employee development, industrial relations, and overall workforce management. One major challenge faced by HR managers in MSMEs is attracting and retaining skilled employees. Unlike large corporations, MSMEs often cannot offer high salaries, extensive benefits, or strong career growth opportunities. As a result, talented employees frequently prefer to work for larger organizations. For example, a small manufacturing unit may train a technician for several months, but once the employee gains experience, he may leave the organization for a better-paying job in a large company. This leads to high employee turnover and increased recruitment and training costs. Another important challenge is limited financial resources for human resource development. Many MSMEs operate with tight budgets and therefore cannot invest significantly in employee training, skill development, and welfare programs. HR managers may recognize the need for regular training programs, but the organization may not have the resources to implement them. For instance, a small textile unit may require workers to learn modern machinery operations, but the cost of professional training programs may be too high for the enterprise. Managing industrial relations is also a significant challenge in MSMEs. In many small enterprises, relationships between