The subject of this paper are the challenges of human resource management in small and medium-sized entrepreneurial ventures. Theoretical knowledge about human resource management will be examined through the example of the small company, DignetSoftware. The big challenges in small and medium-sized companies are often the lack of knowledge and skills about human resources management, and a lack of funds for the establishment of a separated human resource management department. Both can lead to the employment of incompetent persons and endanger the success of a company. Enterprises need to continually invest in employees‘ growth and motivation to develop quality human potential. In the paper, through example, it will be shown how the management of small companies can fulfill all the functions of successful human resource management by following the professional and scientific literature about HRM. The function of human resource management applies company strategies and employs appropriate staff according to them. The survival of a company in a demanding and competitive market requires knowledge and abilities to adapt to constant changes. Changes in the world are happening more and more often, and science is evolving faster, which leads to increased competition on the market. Companies have become aware that the key to becoming successful and increasing competitiveness lies in the quality staff who have the knowledge, skills, and will to develop. For the selection, recruiting, motivation, and development of staff, human resource management is in charge. The aim of this paper is on the concrete example of a small company analyze human resource management and present challenges they face in building a successful business.