Spatial drivers of firm entry in Iran

Purpose During recent years, the long-run relationship between the unemployment rate (UR) and the labor force participation (LFP) rate has been examined in-depth in developed and developing economies. This paper aims to explore this relationship for Iranian women in 31 provinces from 2005Q2 to 2019Q1. Design/methodology/approach To examine the existence of a long-run relationship between female LFP and UR, the time-series cointegration approach has been used. Furthermore, regarding the low power of the univariate cointegration approach, the authors consider a panel version of the cointegration tests developed by Westerlund. Findings Both time-series cointegration tests and panel cointegration test support the unemployment invariance hypothesis for most Iranian provinces, especially the most religious ones. As it implies an invariance to supply side policies, it seems that reducing legal and cultural barriers could be more relevant to decrease female UR and increase LFP than training programs or R&D policies. The present results also suggest that, for this group of regions, a more centralized policy design could be appropriate, instead of a regional one. Originality/value This study investigates whether the unemployment invariance hypothesis holds for Iran, which has not been analyzed before for the Iranian labor market. Moreover, the study adopts a regional approach, which takes into account the huge regional differences in Iran.

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“…1. A deeper analysis on the structural unemployment in Iran can be seen in Cheratian et al (2021a, 2021b). …”

Section: Notesmentioning

confidence: 99%

“…5. For more discussion about the unemployment–entrepreneurship nexus in Iran, see Cheratian et al (2021a, 2021b). …”

Section: Notesmentioning

confidence: 99%

The unemployment–labor force participation linkage in Iran’s women labor market

Cheratian

Goltabar

Calá

2022

IJDI

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“…According to ISIPO (Iran Small Industries and Industrial Parks Organization), the contribution of SMEs in Iran is about 98% and demonstrates a vital share of entrepreneurship. Although entrepreneurial firms are growing, the effect of unfair sanctions should be considered (Cheratian, Goltabar, & Calá, [29]). Exploring elements of fast growth will shed some understanding of how firms grow in Iran and what influences this growth.…”

Section: Research Purposementioning

confidence: 99%

Fast-growth firms and successful environmental entrepreneurs in emerging countries

2021

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Growth is a broad area and many aspect of growth is under research especially in smaller and entrepreneurial firms. Many research show that growth and fast growth happens randomly and is not a continuous phenomenon. In this study, we investigate how successful entrepreneurs grow their firms. The investigation involved ten fast-growth firm cases in Iran -as an emerging economy- in different industries. The research is qualitative and data gathered through semi structured in-depth interviews. After coding, all interviews are mapped. By using Decision Explorer® all causal maps are analyzed. Analysis show that fast growth is a direct outcome of entrepreneurial marketing (EM) practices and indirectly influenced by serendipity. Serendipity is an element observed in many firms that generally occurs at the initial phase of firm formation and could bring great opportunities but indirectly associated with fast-growth. However, serendipity itself is not important but the ability to recognize and exploit opportunity is a crucial activity that entrepreneurs are really great at it. The ability of entrepreneurs to exploit serendipitous opportunities and use entrepreneurial marketing practices in terms of innovative products and activities/process lead to fast growth. Other elements, such as network, innovation, and perseverance, could either directly or indirectly influence growth.

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“…In the case of Iran, there are several studies on how international sanctions influence the formal economy (Gharibnavaz & Waschik, 2018; Laudati & Pesaran, 2021), informal economy (Farzanegan, 2013; Farzanegan & Fischer, 2021; Farzanegan & Hayo, 2019; Zamani et al, 2021), household welfare and women employment (Demir & Tabrizy, 2022; Farzanegan et al, 2016; Khabbazan & Farzanegan, 2016), government expenditures and revenues (Dizaji, 2014; Farzanegan, 2011), militarisation (Dizaji & Farzanegan, 2020; Farzanegan, 2022), trade (Dizaji, 2019; Haidar, 2017; Shirazi et al, 2016), finance (Torbat, 2005) and firm entry (Cheratian et al, 2021). However, the case of persistent approaches of SMEs under sanctions, which was amplified in 2020 by the COVID‐19 pandemic, has not yet been investigated for Iran.…”

Section: Introductionmentioning

confidence: 99%

Firms persistence under sanctions:Micro‐levelevidence from Iran

2023

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Given the importance of firm strategic management in the time of crisis, this study investigates Micro, Small and Medium Enterprises (MSMEs) approaches to persistence during the international sanctions against Iran. Using data from a questionnaire of 486 firms between December 2019 and September 2020, we found that reducing research and development (R&D) expenditures, marketing costs and fixed/overhead costs and investing in information technology (IT) are positively related to firm persistence. Conversely, managerial decisions to reduce production and cut or freeze staff pay have negative and significant impacts on a firm's ability to persist during sanctions. Moreover, micro‐firms are more resilient than their small and medium counterparts. The findings also confirm that age has a significant and positive impact on firm persistence. Finally, the results show that having a business plan, access to finance and technology, owner education, export orientation, business networking and consulting services are the key drivers of withstanding pressure from sanctions.

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Spatial drivers of firm entry in Iran

Cited by 9 publications

References 85 publications

The unemployment–labor force participation linkage in Iran’s women labor market

The unemployment–labor force participation linkage in Iran’s women labor market

Fast-growth firms and successful environmental entrepreneurs in emerging countries

Firms persistence under sanctions:Micro‐levelevidence from Iran

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