Developing a Small and Medium Enterprise Development Model for SMEs in rural areasCase study: villages in Ilam province

Small and medium enterprises with such characteristics as flexibility and environmental adaptability in changing conditions, low capital requirements and simplicity of structure, have a good consistency with the economic situation of border villages in Iran. In most developed countries, the focus of activities and innovations is on small and medium enterprises.The statistical population of the study consisted of 598 experts and managers of executive agencies of rural economic activists (entrepreneurs and rural cooperative) and university professors. Among them, 235 people were selected by sample sampling method using Cochran formula. On the basis of this criterion, financing factors and production factors, supporting and encouraging factors, educational and skill factors, and cultural and social factors, were identified with a high value of 1 and identified as extractable factors. The naming of these factors was done with regard to the content of the variables and with regard to the literature and background of the research. Regarding the statistical indices, using the main factors analysis method, these four factors were able to explain 7531% of the variance of the total variables.