Managing human resources in small firms is different for four main reasons: vite, priorities, informality, and the nature of the entrepreneur. These have several implica- tions. First, small business owners run the risk that their relatively rudimentary human resource practices will put them at a competitive disadvantage. Second, there is a lack of specialized HR expertise. Third, the smaller firm is probably not adequately addressing potential workplace litigation. Fourth, the small business owner may not be fully complying with compensation regulations and laws Fifth, duplication and paperwork lead to inefficiencies and data entry errors.? L01