ABSTRACT
This chapter examines the nature of the small firm and small firm ownership. It discusses that people may elect to own a small business so they can exert a strong degree of control over what they do and when and how they do it. The chapter shows that the small firms, personal and business assets and the level of day-to-day control over operations by managers are entangled. It argues that the greater the overlap between the shared assets and liabilities circles the smaller the firm. The chapter discuss ownership objectives, that when the overlap is relatively small, or there is complete separation, the firm is growing or has been through a significant period of growth. It introduces a few models of the lifecycle theory. The chapter also argues that small firms are basically extensions of the characteristics, goals and objectives of the individuals who own and operate them.
