The way in which small firms formulate their short-term employment forecasts is examined. Survey evidence based on the experience of some recently formed small businesses located in the North of England is used to test two models of forecast formation. The empirical results suggest that small...

This paper utilises some data from an interview survey of very small firms in the North of England to examine the relationship between actual and forecast employment in small firms over a twelve month period. The paper first provides some summary statistics on actual and forecast employment for...