Effect of Entrepreneurship and Business Environment Policies on Entrepreneurship Development

Entrepreneurial activities depend on encouraging environment to increase the number of entrepreneurs, and growth of businesses. Studies proved that business environment has direct effect on entrepreneurship development. Therefore, improvement of environmental factors are vital for sustainable growth of private sector. This research has been designed to investigate the effect of 1) entrepreneurship and business environment policies on entrepreneurship development and 2) assess the status que of these policies. Conceptual model comprises entrepreneurship policies, business environment policies and short and long term development.The research is applied based on aim and a correlation survey based on data gathering tools. Questionnaires were distributed among 417 specialists and mangers of public sector including: Ministry of Economic Affairs and Finance; Ministry of Cooperatives, Labor and Social Welfare; Ministry of Industry, Mine & Trade; Ministry of Science, Research and Technology; Country’s Program and Budget Organization, and the Islamic Parliament Research Center. Data analyzed based on confirmatory factor analysis, path analysis, and t-test. The results proved the relationships of conceptual model to be acceptable but entrepreneurship and business environment policies faced barriers for development of entrepreneurship.