ABSTRACT
This introduction presents an overview of the key concepts discussed in the subsequent chapters of this book. The book focuses on the new firm and the associated formation process. It examines formation primarily from an economic perspective. It is true that both M. Cross and D. J. Storey pay considerable attention to economic aspects of firm formation. A few entirely new firms may grow very rapidly and pass the upper limit of the small firm – set by the Bolton Committee at 200 employees in the case of manufacturing – shortly after birth. The Small Firms Division of the Department of Industry was set up in 1971 and two years later the Department began establishing Small Firms Information Centres throughout the country. Most of the present interest in small firms in the United Kingdom can be traced back to the report of the Bolton Committee of Inquiry on such firms in 1971.
