The Role of Local Formal and Informal Institutions in Microfirms' Development

Evidence from Poland

Bibliographic Data

ID2434460
AuthorsJudyta Lubacha-Sember (0000-0002-4195-6530, Jagiellonian University), Małgorzata Godlewska (0000-0001-7413-0674, Jagiellonian University)
Year2018
Volume11
Issue3
Pages43-58
Publication date2018-09-01
Open AccessYes
TypeARTICLE
VenueEconomics & Sociology (JOURNAL)
Journal identifiersISSN: 2071-789X • E-ISSN: 2306-3459
PublisherCentre of Sociological Research, Szczecin, Poland (PUBLISHER • PL)
DOI10.14254/2071-789x.2018/11-3/3
OpenAlexW2896707510
LanguageEN
Citations received2
References cited16

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.

Business · Economic geography · Economic growth · Economic system · Economics · Geography · Political science · Regional science · Sociology · Entrepreneurship Studies and Influences · Microfinance and Financial Inclusion · Migration, Ethnicity, and Economy

Tools

Open DOIOpen Access