Power dynamics, informal labor, and workforce management in small-scale enterprises: analyzing employment relations through regulatory and sociocultural lenses

Employment relations in small-scale enterprises in Nigeria are influenced by power dynamics, labor regulations, cultural norms, and economic conditions, creating challenges for worker representation, and job security. This study focuses on the Nigerian context to examine the complexities of labor relations in these enterprises, emphasizing informal employment structures, employer-employee power asymmetries, and workforce management strategies. Analyzing regulatory gaps and sociocultural influences reveals the vulnerabilities of workers and explores employer-driven initiatives that can enhance labor conditions. The findings underscore the need for stronger labor protections, structured employment policies, and proactive human resource management to balance business sustainability with equitable labor practices. The study introduces the power and labor dynamics model as a conceptual framework to understand employment relations in small-scale enterprises. This model provides insights into how employer control, worker agency, and regulatory interventions interact to shape labor outcomes. The research concludes that integrated policy measures and employer-led strategies are essential for fostering sustainable and equitable employment conditions in Nigeria’s informal labor market. Recommendations for future studies include examining the impact of digitalization, automation, and alternative worker representation mechanisms on employment relations in small-scale enterprises.