M. H. ATKINS IS WITH THE DEPT. FOR Management Studies, University of Aberdeen, Scotland, andJ. F. Lowe is with the Bristol Business School, University of Western England, UK This paper reexamines the definition of a small firm. In the past both input and output criteria have been used in different industrial sectors, often without any formal justification except convenience. Other definitions have concentrated on structures or roles but instead a new model based on management processes related to the planning function is advocated. This new model is widely applicable and empirical results have been obtained from large-scale samples of firms in the United Kingdom and Australia. Logistic regression is used to identify the structural differences between firms in manufacturing and services.
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