The Effect of Human Factors on The Industrial Enterprise Formation in Iran's Provinces With an Emphasis on Panel Data Approach

People interact with their surroundings naturally. When the individuals decided to launch own firm in the special area, they compelled to consider the effect of human factors in their action. The importance of this subject is shown continuing their activities, the success or failure of firms and as well as providing social and economic development in the region. Since entrepreneurs and policy makers by awareness of these factors to improve own and different areas of the country will be able to target very precisely.The aim of this study is to survey the impact of human factors on the industrial enterprise formation in Iran’s all provinces. This is a descriptive, cause-effect study which thehuman factors explained in three indexes of population, household income and the unemployment rate and the econometric model is estimated by using panel data. The required data has obtained from the Statistical Center of Iran, for the period 2007 - 2011 specialized for the 30 provinces and using of Eviews.6 and Stata.12 software and analyzed by fixed effects model. The research results confirmed the significant regression equation. Also it showed that three human factors of population, household income and unemployment rate have a negative and significant effect on the industrial enterprise formation in Iran’s provinces.