The article explores the importance of understanding small businesses in today's competitive landscape. It challenges traditional economic theories and highlights the diversity in small firms' structures and performance. The researchers analyze the relationship between efficiency and firm size, emphasizing the significance of external economies and collective efficiency. They discuss how technical, social, and organizational aspects are crucial for small firms, drawing on theories by Simon, Nelson, and Winter. The goal is to develop a theory dedicated to small and medium-sized businesses, recognizing their unique characteristics and contributions to the economy.