Political factors affecting the survival of SMEs case study: An empirical study in Tehran Grand Bazaar
Mehran kamali Zonouzi, Mahdi Hoseyni, Mohammad Khoramshahi
Abstract
Today, the basic role of small and medium-sized enterprises (SMEs) in determining the economic growth of developed and developing countries is obvious for all governments. In the present study, the political factors refer to the application of a nested set of macroeconomic and political policies in practice without the intended profit or theoretically transparent and profitable but rent-seeking in the implementation method, which is detrimental to the small businesses from the micro perspective and the economy from a macro perspective. Considering the economic problems of Iran in the field of SMEs, the present study investigated the political factors affecting the survival of SMEs. In this regard, more than 300 individuals were selected from those with SMEs in Tehran Grand Bazaar in 2018 by using a binary model. The logit and probit regression models were used to analyze the data, and Excel 2016 and SHAZAM 11 software packages were used to analyze the results. The results indicated that among the variables and indicators used in the model as political factors, interactive policies (LIPs), the rule of law policies (RLPs), and the international tension-releasing policies (IPs) significantly influence the factor of SMEs survival policy in Tehran's Grand Bazaar.