A spread in the growth of small firms in disparate regions within a co
untry seems incongruous to many regional scientists. Nevertheless, thi
s phenomenon can be observed in almost every country. Start-up and gro
wth of small businesses are not strictly confined to a particular type
of spatial environment. In this paper we examine how small businesses
manage to start and grow under different locational conditions. To th
at end, we make a qualitative and longitudinal comparison between the
environmental behaviour of successful small firms located in the Dutch
periphery and similar firms located in the country's economic heartla
nd, known as the Randstad. Although the interregional differences in e
conomic conditions seem to be moderate in the Netherlands, the periphe
ral firms had to deal with more environmental constraints than the cen
tral ones. However, at the same time the former showed considerable ab
ility to deal with these barriers. Furthermore, the causes underlying
'the environmental responsiveness' of the small firms investigated cou
ld be traced either to characteristics of the locational environment i
tself or to features of the organizations from which the firms origina
ted.