Investigating the Factors Affecting the Sustainability of Small Firms and Entrepreneurs (Case Study of Industrial Firms of Mashhad)

Despite high creation of jobs by small firms, their instability and short life are among the most important problems in these businesses. Thus, this study examines the factors affecting the sustainability of small industrial enterprises in the city of Mashhad. This research is an applied research survey in terms of the purpose and the information is collected through a survey using a questionnaire. Due to the high proportion (70% of industrial employment) five industrial groups, "food", "non-metallic mineral," "Rubber", "Metal Products Factory" and "machinery unclassified elsewhere" and instability of these industries in the city of Mashhad, the population in this study consists of five industrial groups. Stratified Random Sampling was used and required information was collected through completed researcher-made questionnaire by managers of small industries and the ordered logit was used to investigate the factors affecting the sustainability of the studied businesses. The "business sustainability" Index was the dependent variable and includes combination of changes in capital, sales and employment of firm. According to the results of this study, the major factors affecting sustainability of small enterprises were: administrator education, how to control and to monitor the firm by the manager, manager risk, awareness of market opportunities, the number of staff training, market access and reliance on suppliers financial borrowing. Also, the possibility of changes in the level of business sustainability; on the basis of change in these factors, was studied.