The aim of this paper is to highlight critical issues facing Technology‐Based Small Firms by drawing attention to the latest research in this field. In the main, the discussion is based on selected papers presented at the Third High Technology Small Firms Conference held at Manchester Business School in September 19951. However, the author does draw upon other literature also in order to place conference findings in a wider context. An overview of current research indicates that securing external funding and formation of external alliances remain at top of the agenda for both Technology‐Based Small Firms as well as policy mak