Taxation and the performance of technology based small firms in the UK

This paper analyses a database of U.K. small companies in order to establis h the profile of Technology Based Small Firms (TBSFs) in terms of their dem ography, financial structure and performance, and tax affairs. Following th e evaluation of the impact of direct taxation on the high technology small companies, compared to that of their low technology counterparts, the paper briefly discusses the current policy debate about the nature and appropria teness of tax-based incentives for the development of this strategically im portant scale and type of enterprise.