A theoretical model is suggested which describes the generation and evolution of misfit dislocations in composite solids containing nanowires with rectangular cross-section. In the framework of the model, the ranges of the geometric parameters (nanowire sizes, misfit parameter, interspacing between the nanowire and the free surface of the composite) are calculated at which the generation of various misfit dislocation configurations (loops, semi-loops and dipoles) is energetically favourable. Transformations of these dislocation configurations and their specific features are discussed.