Abstract

Micro, small and medium enterprises (MSMEs) represent more than 99% of enterprises in Europe. Therefore, knowledge about this sector, also in the spatial context is important to understand the patterns of economic and social development. The main goal of this article is an analysis of spatial conditions and the situation of MSMEs on a local level using combined sources of information. This includes data collected in the Social Insurance Institution and Tax registers in Poland, which provides information on the employment, wages, revenues and taxes paid by the MSMEs on a local level as well as contextual statistical information. The data is used for a diagnosis of spatial circumstances and discussion of conditions influencing the status of the MSMEs sector in a selected region (voivodeship) in Poland. Taxonomy methods including factor analysis and clustering methods based on k-means and SOM Kohonen were used for selecting significant information and grouping of the local units according to the situation of the MSMEs. There are eight factors revealed in principal component analysis and five clusters of local units distinguished using these factors. These include two clusters with a high share of rural local units and two clusters with a high share of rural-urban and urban local units. Additionally, there was an outstanding cluster with only two dominant urban local units. Factors show differences between clusters in the situation of MSMEs sector and infrastructure. Different spatial conditions in different regions influence the situation of MSMEs.

Highlights

  • It is important to monitor the role of the MSMEs at the national or regional, and at the local level

  • The MSMEs are important actors that can contribute to sustainable development, as they are embedded in the local context and environment

  • We focus on the MSME sector, whose role in the Polish economy is substantial and increasing

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Summary

Introduction

Small and medium enterprises (MSMEs) play a significant role in the economy. This sector represents more than 99% of all enterprises in Europe and they contribute significantly to local economies. It is important to monitor the role of the MSMEs at the national or regional, and at the local level. The MSMEs play various roles in the local economies. They create jobs and invest, contributing to the development of local economies, their infrastructure and growth potential. The MSMEs are important actors that can contribute to sustainable development, as they are embedded in the local context and environment

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