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

Riazi, Mahdi; Bahraini, Reza

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

Document Type : Original Article

Authors

Mahdi Riazi ¹
Reza Bahraini ²

¹ PhD in Production and Operations management, Faculty of Management and Accounting, Allameh Tabataba'i University, Tehran, Iran.

² Ph.D. Student in Marketing Management, Faculty of Management, Islamic Azad University, Qazvin Branch, 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. Based on this analysis, the paper ends with providing some practical solutions to ease the establishment and improving the performance of small and medium enterprises.

Keywords