Studies about people management in small companies in Brazil are incipient, considering the importance of these organizations to the economy. The study seeks to analyze the adoption of the competence-based management model by small enterprises (SEs), identifying the benefits and the difficulties as well as the perception of the professionals that work with people management in these organizations. Therefore, with a multi-method approach, competencebased management models were implemented in two SEs through action research method. Subsequently, the perceptions of the professionals that work with people management in SEs about the dynamics of the concept of competence as the guide for people management in these organizations was analyzed through survey. Competence-based management is understood as a radical innovation in management model for this type of organization, and this concept is justified through theoretical review. It was possible to infer that the practices in SEs still refer to the personnel department model, as advised by theorists. However, there is awareness of the need for change. Professionals who responded to the survey, in most cases, have higher education, occupy management positions and declared to be familiar with the concept of competence-based management. It was possible to classify the knowledge of these professionals in three levels and there was prevalence of professionals who have little knowledge about the concept and low presence of those who have no knowledge. It is noteworthy that both the benefits and the difficulties set out in the literature were found through the intervention and perceived by respondents on the survey. The cost-benefit ratio of the adoption was positively evaluated in both phases of the study. The hypotheses test results point to the intention of adoption and to a positive perception of the feasibility of adoption of the competence-based model by small enterprises.