This study considers how the unemployed can benefit from policies and programmes to promote small firms and other forms of local enterprise. Carried out between 1984 and 1985, the study begins with a summary of its key findings. It then goes on to a discussion of small firms’ policies and their requirements for premises, finance, and advice and training. It also considers the special role, prospects and needs of various third sector enterprises and concludes with case studies on small firms’ development in Strathclyde, Orkney and Leicester.