Stars form from the contraction of large, cold, low density gas and dust clouds which exist between the area between the stars (the Interstellar Medium, ISM) in our Galaxy. This is a rather amazing process in that it takes a cloud whose temperature is 10 - 50 Kelvins, whose density is thousands to millions of particles per cubic centimeter, and whose radius is initially around 1 parsec (3.26 light years), and shrinks it down to form a Main Sequence star -- objects with central temperatures of millions of Kelvins, central densities on the order of 10**26 particles per cubic centimeter, and radii of a million or so kilometers (10**(-7) parsec or 3 light-seconds!).
The process is driven by gravity.
So, for collapse to occur the r.h.s must win. To get a rough feel for this criterion, note that density = N x m ~ M/R**3 ===> R ~ (M/N)**1/3 so that the criterion is
M**(2/3) > P / N**(4/3) / (G m**[4/3]) ===> M > around M(Sun)
for T ~ 10 - 50 Kelvin, N ~ 1,000 - 1,000,000 per c.c., and m ~ 1.7 x 10**(-24) grams.
That is, for a given pressure and density, a cloud must have a mass greater than the above limit in order to become graviationally unstable and form a star. The above limit on the mass is known as the Jeans' Mass
The preceding discussion concerned the formation of single stars. However, more than 50 % (and perhaps up to 80 %) of all stars are in mulitple (double star, triple star, quadruple star, ... ) star systems and thus an important point to try and understand is how do we form multiple star systems. Do binary star systems form by captures of random stars or do the stars in the systems form at the same time from the same cloud?