Abstract
In this paper, we investigate the relationship between institutional quality and entrepreneurial success in emerging markets. We hypothesize that higher quality institutional environments will result in greater firm-level economic performance. Further, we predict that these effects will vary for small versus large firms. We test our hypotheses using a comprehensive data set drawn from the World Bank Business Environment Survey (WBES). We find that institutions are important to both large and small firms, but that small firms are especially vulnerable to poor quality institutional environments. We draw implications of our findings for policymakers and practitioners.