The Role of Macroeconomic Factors in the Business Environment of Small and Medium Enterprises in the Health Sector of Isfahan Province, Iran, Based on the PESTEL Model (Case Study: Medicine Industry)

This study focused on the role of exogenous factors and other macroeconomic factors in the business environment of small and medium financial institutions working in pharmaceutical sector in Isfahan Province, Iran.
The current study had an applied goal, and used descriptive survey method. Data gathering was carried out in the field, using a researcher-made questionnaire based on PESTEL (Political, Economic, Social, Technological, Environmental, Legal) model. Statistical population consisted of financial 238 agents in pharmaceutical sector in Isfahan Province. From this number, 142 people were selected based on Krejcie and Morgan table, using convenient sampling method. Face and conceptual validity of the questionnaire were evaluated and confirmed; while its reliability was measured using Cronbach’s alpha coefficient, which was equal to 0.95. In order to investigate the role of six PESTEL factors, single variable t and Friedman ranking tests were used.
Findings: All six factors of PESTEL model played important roles in business environment for small and medium sized businesses in pharmaceutical sector in Isfahan Province. Among these, political factors played the most important role, while technological factors were the least important factor.
Factors such as political changes, government policies in pharmaceutical market, stability of currency exchange rate, stability of laws and regulations, heath development plan, environmental factors, drug use pattern and medication culture, medicine manufacturing and distribution regulations, and other similar factors can cause changes in business environment for small and medium players in pharmaceutical sector.