Studying the Impact of Small and Medium-Sized Manufacturing Industries on the Growth of Industrial Value Added in Iran’s Economy

This paper attempts to explain the importance of small and medium-sized enterprises in the economy and to highlight their main facing challenges, in particular the “financial challenge". The present paper seeks to analyze the impact of small and medium-sized industries on the growth of industrial value added in Iran’s economy for 22 ISIC codes during the period of 2005-2014.The main findings of this study indicate that the growth of value added of small and medium-sized industries has a significant positive effect on the growth of value added of industries with ten employees and more; the growth of innovation level in small and medium-sized industries may have a significant positive effect on the growth of value added of this group of industries, and the growth of openness of Iranian economy can affect the growth of value added of industries with ten employees and more, positively; but it has a negative effect on the growth of value added of small and medium-sized industries. Furthermore, it is suggested that in order to boost and facilitate the economic activities of small and medium sized enterprises, several issues should be considered including“promoting the non-bank financing methods”, “providing effective support for innovative projects”, “implementing industrial export development programs”, and “providing industrial advisory services, in particular financial advisory services”.