We estimate the luminosity function of field galaxies over a range of 10 mag (-22 < M-BJ < -12 for H-0 = 100 km s(-1) Mpc(-1)) by counting the number of faint APM galaxies around Stromlo-APM redshift survey galaxies at known distance. The faint end of the luminosity function rises steeply at M-BJ approximate to -15, implying that the space density of dwarf galaxies is at least 2 times larger than predicted by a Schechter function with flat faint-end slope. Such a high abundance of dwarf galaxies at low redshift can help explain the observed number counts and redshift distributions of faint galaxies without invoking exotic models for galaxy evolution.