Hamidreza
Student: Hamid
Instructor: Elise McLain
Class: Writing 8 – Final Essay (Problem and Solution)
Term: Spring 2014
Surviving Small Businesses in Iran Private sectors play an important role in the economy of each country. There is a logical link between the participation rate of non-governmental businesses in GDP (Gross Domestic Product) and economic growth in poor and developing countries (Promoting Pro-Poor Growth, Leturgue, Henri and et al., 2010). Developed countries support small and micro businesses regarding to guarantee their own economic growth. In contrary of developed and developing countries, small businesses, started up by Iranian young and educated entrepreneurs, have increasingly been involved in economic, political, and cultural problems. According to the annual economic statistics issued by the World Bank in 2013, the time required to start-up a business in Iran is 16 days that is 4 times more than the USA, and this country has been ranked as the 152nd country among 181 countries in the world in 2013. The USA is put at 4th in this ranking. While more than 20% of financial bills which cost more than $15 billion never passed in 2012, the beneficiaries were not supported illegally by the government (The annual economic report of Iran, the Central Bank of Iran, 2013). As an obvious result, more than %80 of new established small businesses will fail in first three years and almost %10 can’t survive more than 5 years (donye-e-eqtesad.com). These circumstances have been affected surviving of small businesses in this country, and consequently, young entrepreneurs are not interested to invest and start-up new small businesses in their motherland. The influential factors on the small businesses’ life-curve in Iran can be categorized into three groups: economic, political, and cultural factors (Basic Challenges in Iran’s Economy, Mashayekhi, Alinaghi, 2012). Although these groups of influential issues are closely related to each other, each one can
Instructor: Elise McLain
Class: Writing 8 – Final Essay (Problem and Solution)
Term: Spring 2014
Surviving Small Businesses in Iran Private sectors play an important role in the economy of each country. There is a logical link between the participation rate of non-governmental businesses in GDP (Gross Domestic Product) and economic growth in poor and developing countries (Promoting Pro-Poor Growth, Leturgue, Henri and et al., 2010). Developed countries support small and micro businesses regarding to guarantee their own economic growth. In contrary of developed and developing countries, small businesses, started up by Iranian young and educated entrepreneurs, have increasingly been involved in economic, political, and cultural problems. According to the annual economic statistics issued by the World Bank in 2013, the time required to start-up a business in Iran is 16 days that is 4 times more than the USA, and this country has been ranked as the 152nd country among 181 countries in the world in 2013. The USA is put at 4th in this ranking. While more than 20% of financial bills which cost more than $15 billion never passed in 2012, the beneficiaries were not supported illegally by the government (The annual economic report of Iran, the Central Bank of Iran, 2013). As an obvious result, more than %80 of new established small businesses will fail in first three years and almost %10 can’t survive more than 5 years (donye-e-eqtesad.com). These circumstances have been affected surviving of small businesses in this country, and consequently, young entrepreneurs are not interested to invest and start-up new small businesses in their motherland. The influential factors on the small businesses’ life-curve in Iran can be categorized into three groups: economic, political, and cultural factors (Basic Challenges in Iran’s Economy, Mashayekhi, Alinaghi, 2012). Although these groups of influential issues are closely related to each other, each one can