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The aim of the paper is to analyze the influence of the existence of both company-specific and related industries in proximal and distal environments on the creation and development of new companies. We confirmed that both cognitive and proximity dimensions are crucial for formation of new entities. Related industries located in the same community support the formation of new businesses to the greatest extent. Conversely, related industries outside the community hinder the formation of companies in the industry located in the community. The results are opposite for companies operating in the same industry; existing companies in the community usually hinder the formation of new companies because of the high level of competition, while those located outside the community have a positive impact.
