Policies Inefficiency and its Effects on Iran Small and Medium Industries Development

In spite of this fact that small and medium industries sector play important role in developed and developing countries and has a significant role in economic growth, employment and export, unfortunately these industries is not in a proper status in Iran. The deficiency of policies designed to support small and medium industries, is one of the main impediment of small and medium industries development. The aim of this paper is to study the effect of Inefficiency in Policieson Iran’s small and medium industries development surveying of SME experts with structural equation modeling. According to the findings, there are statistically positive relationships between the quality and functioning of designed policies to support SMEs and the capability and performance indexes of small and medium industries development. Therefore, it is inferred that the Inefficiency in Policieshas negatively affects the situation of small and medium industries in Iran.