The aim of the article was getting to know the factors, determining socio-economic activity of small and mediumsized businesses on border areas in Warmińsko-Mazurskie voivodeship. The study was conducted by telephone interviewing in 2015 amongst randomly selected group of 76 entrepreneurs. The gathered empirical data allowed to determine the areas which need taking action from local authorities to work for socio-economic development of border areas and improve the functionality conditions of the already existing companies. In entrepreneurs’ opinion, an important element in small and medium-sized businesses development is advertisement of the area and introduction of investment incentives. The study shows that endogenous possibilities of entrepreneurship development are limited. The most frequently raised issues were connected with the functioning of companies in their remote location, and also progressing depopulation of the area and low purchasing power of the local community.