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For many years the British government has pursued policies designed to stimulate and support the development of small firms. Following an outline of current policy and its rationale, examines the likely impact of these measures on the hospitality industry, a sector characterized by small enterprises. Argues that the paucity of available empirical evidence means that reaching firm conclusions is inappropriate. Calls for a new research agenda so that those engaged in giving advice on the effective management of small hospitality organizations might do so from a secure knowledge base and to ensure that the deliberations of policy makers are informed by sector‐specific considerations.

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