The article discusses how firms are formed and grow, focusing on the role of entrepreneurs in directing resources. It explores why entrepreneurs, rather than just market prices, play a key role in organizing production. The study suggests that firms emerge due to factors like uncertainty, marketing costs, and government regulations. It also examines how firms expand based on factors like market costs, organization efficiency, and production quantity. Ultimately, the research highlights the importance of entrepreneurs in shaping the structure and growth of firms in the economy.