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This paper reports on research into human resource management (HRM) practices in small businesses in New Zealand. Owner-managers of 80 small businesses were interviewed on aspects of managing their human resource (HR) and on how they dealt with significant statutory requirements. The results indicate that HR practices in small businesses were predominantly informal, but largely effective. The research found that there were sound reasons for the informal approaches in the context of the small business and 'mainstream' HRM practices were inappropriate. The research concluded that it is difficult to generalise about small business HRM practices and that important contextual factors, such as geographic location, influence the way a small business manages its human resources.