Life standard of local community determines the market absorbency, which can make up one of the determinants of local micro, small and medium-sized enterprises. The aim of the paper is the empirical verification of influence of local life standard in Southern Poland on small and medium-sized enterprises" development. The southern region was defined using European statistical nomenclature NUTS-1 as the area of two voivodeships: Małopolska (Lesser Poland) and Śląsk (Silesia). In the course of research the hypothesis stating, that life standard of local community impacts on small and medium-sized enterprises" development in a studied region, was assumed and then verified.