Technical Efficiency Measurement of Small-Scale Industries in Hamedan

The main reasons for developing countries to support small and medium-scale industries are their high flexibility, lower investment necessity, targeting specific entrepreneurs, and dynamic management. These characteristics are important for creating jobs, bringing equitable distribution of income, and overall higher-gross domestic products. The main purpose of this study is to measure the efficiency of small -scale industries by data envelopment analysis within different provinces of the country with special reference to Hamedan province. The results show that, during the years 1381-1386, the average efficiency of small industries in the country was around 96 percent. The sensitivity analysis shows that the most important factors affecting performance are employment rate, quantity of investment, and value of production. Hamedan province has been equal to the average score of the country (92 percent), ranking 12 among all the provinces. However, the trend of efficiency and productivity growth was not positive as expected.