Judyta Lubacha-Sember,

Institute of Economics, Finance, and Management, Faculty of Management and Social Communication, Jagiellonian University, Krakow, Poland,

E-mail: judyta.lubacha-sember@uj.edu.pl

ORCID: 0000-0002-4195-6530

The Role of Local Formal and Informal Institutions in Microfirms’ Development: Evidence from Poland

Małgorzata Godlewska,

Collegium of Business Administration, 

Warsaw School of Economics, Warsaw, Poland,

E-mail: mgodlews@sgh.waw.pl

ORCID: 0000-0001-7413-0674

Abstract. Microfirms play a significant role in the Central/Eastern European economies, comprising 86% of the total amount of active firms. Development of microfirms is influenced by the local entrepreneurial environment. This article discusses the role of the local formal (regulations, local acts of law) and informal (customs, social norms and values) institutions in the development of microfirms. Synthetic exploration of the coexistence of formal and informal institutions on the example of Masovian and Swietokrzyskie voivodeships in Poland has been carried out. To present a multifaceted perspective, the following research methods were used: a survey among formal local institutions, individual indepth interviews with microfirms’ owners and Regional Chambers of Commerce and also a case study on the local law acts. The findings suggest that the development instruments used by formal local institutions are inadequate for the needs of MF's. Furthermore, the crucial role of family support, and the importance of knowledge sharing has been found.

Received: December, 2017

1st Revision: March, 2018

Accepted: June, 2018

DOI: 10.14254/2071-789X.2018/11-3/3

JEL Classification: K23, R11, B52, O18

Keywords: formal institutions, informal institutions, microfirms, local and regional development, entrepreneurial environment