The impact of environmental factors on growth and survival of small manufacturing firms of entrepreneurs in Iran

The failure rate of small manufacturing firms in many countries is the main concern of policy makers, decision makers, and economists. Many scholars in this context undertook numerous studies related to success of entrepreneurs, taking into account important factors such as organizational factors and personal qualities on their success. However, the present study attempts to investigate role of environmental factors (government support system) on success of entrepreneurs in all regions of Iran. To fulfill the aim of the research, a quantitative research design with self-administered questionnaire was employed. The respondents were selected from the directory of small industries provided by Iran Small Industries & Industrial Parks Organization (ISIPO). Based on the probability sampling design, 600 entrepreneurs were selected across the country to participate in the study. The mail survey yielded 240 completed responses, which were included in the final analysis. The results of the analysis revealed that the relationship between government support system and entrepreneurs’ success in both term of growth and survival was found to be significant, positive, and linear.