THE CREATION AND GROWTH OF SMALL BUSINESS SERVICE FIRMS IN POSTINDUSTRIAL BRITAIN

Since 1980, the United Kingdom has experienced a dramatic growth in fi rms and employment in information-intensive business services, such as management consultancy and market research. This article reports the results of the first substantial nation-wide investigation into the na ture and causes of small professional business service firm growth in Britain, undertaken in 1991. It reveals marked differences in the char acteristics, markets and competitive requirements of such firms, compa red with small manufacturing firms. The demand for their services come s predominantly from large companies, and is more focussed on financia l and other services and government. But small firms are also making i ncreasing use of business services. Specialised expertise, reputation and educational and professional qualifications are essential prerequi sites for the establishment of new business service firms. Their succe ss is also being enhanced by increasing use of informal networking, co llaborative partnerships, and subcontracting.