Entrepreneurship and small business have received strong public policy and academic interest in the last 15 years. It has been claimed that small firms are the source of considerable innovative activity, generating many new jobs and playing an important role in industrial evolution. This has obvious consequences at the macroeconomic level. Countries that encourage entrepreneurship and free entry should benefit from this vital contribution of the small sector to the long-term health of the economy. However, integration of research on small and medium-sized enterprises (SMEs) and the macroeconomy has been scarce. The volume Entrepreneurship, Small & Medium-Sized Enterprises and the Macroeconomy seeks to contribute to our understanding of the connection between changes that occur at the microlevel and macroeconomic performance. The selections in the volume are edited versions of papers presented at the conference of the same title held at Jonkoping University in June 1996. The chapters in the book are arranged i n four parts. Part I deals with the general subject of entrepreneurship and its role in industry dynamics and in the macroeconomy, Part II covers issues of financing entrepreneurship and SMEs, Part III deals with job creation and destruction and Part IV focuses on innovation, productivity and economic growth.