The Impact of Improving Business Environment Indicators on the Development of Small and Medium Enterprises

Document Type : Original Article

Authors

1 Ph.D., Department of Production and Operations Management, Faculty of Management and Accounting, Allameh Tabataba'i University, Tehran, Iran.

2 Ph.D. Candidate, Department of Marketing Management, Faculty of Management, Qazvin Branch, Islamic Azad University, Qazvin, Iran.

Abstract

In current economic environment small and medium-sized manufacturing businesses - due to the significant role these businesses play as the driving force behind GDP - have assumed greater importance. Current studies indicate that improving business environment is a crucial factor behind incentivizing the establishment and development of new businesses, as well as, facilitating the optimal performance of such businesses. This paper seeks to identify the effects of improving business environment indicators on starting small and medium-sized businesses in order to provide solutions for eliminating barriers to production. By utilizing survey methods and a questionnaire, the paper seeks to evaluate the extent and manner of the impact of identified factors on the establishment of small and medium businesses. The subjects and the statistical population of this study in qualitative sections includes academics in the fields of management, economics, and business, as well as industry experts, including senior managers of small and medium businesses. For analyzing the data gathered, the paper relies on coding methods for the qualitative component of the study, and structural equation modeling method with a partial least squares approach (with the help of Smart PLS software) for the quantitative component of this study.
The results of the study showed that starting a business, obtaining business licenses, access to electricity, obtaining credit, supporting small investors, paying taxes, cross-border trade, enforcing contracts, investment security, corruption levels, access to information, competitiveness, sanctions, international interactions, foreign capital, inflation, government interventions, coordination between organizations, and elite exit had a significant impact on starting small and medium-sized businesses. This analysis could not confirm the effect between property registration, bankruptcy, and cyberspace indicators on starting small and medium-sized enterprises.

Keywords

References

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Journal of Defense Economics and Sustainable Development
Volume 7, Issue 23
June 2022
Pages 53-79

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