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The objective of the paper is to present the development and distribution of microfirms in mid-size Polish towns during the years of transformation of the political system. Research comprised towns with a population numbering from 20 thousand to 100 thousand inhabitants. According to the Central Office of Statistics reporting standards it is recognized that micro enterprises are economic entities employing up to nine people. Research has shown that a dynamic growth of microfirms took place during the transformation period in mid-size Polish towns. Majority of them came into being in towns with high tourism values located near border crossing points, along the main communication routes, on the edge of great urban-industrial agglomerations and towns located within special economic zones. On the other hand, the least number of microfirms were recorded in towns with less than 50 thousand inhabitants, usually peripherally located in a given voivodship.