Despite the economic and numerical significance of small and medium-sized enterprises (SMEs), they have been paradoxically neglected within the extant HRM literature. It is this neglect, coupled with the need to invoke novel theoretical perspectives to advance understanding, that provided the motivation for this edited volume. In this opening chapter we begin by discussing the significance of SMEs and the challenges associated with defining key terminology. We then discuss the key characteristics of SMEs that shape HRM in this context captured by the acronym RECIPE (resource constraints, environmental vulnerability, centralised control, proximity of relations, employee dynamics) and outline their implications for HRM. This is followed by an explanation of the rationale underpinning the structure of the book, specifically the focus on HR challenges and HR dynamics. We conclude by summarising the key contributions in this edited collection.