It’s no secret that big publishers often publish books written by those whose first books were published by smaller publishers. It’s how most of the “big four” publishers gain their new authors now, but it leaves the little guys of the industry to be the ones taking the risk of publishing unknown authors. Authors are also encouraged to move onto the bigger firms, where there are more resources and a wider distribution network.
This leads to the question of whether the big publishers are even willing to take anymore risks on publishing new authors or not. This explains the current climate of publishing, with the “riskier” authors being forced to publish indie if they want to get their first book released and their Name out there.
Read more about the dichotomy of small publishers and the big publishers at The Guardian.