Role of Early Returns Credit on Development of Livestock Farms

Supporting establishment and development of small and medium enterprises is one of priorities in the economic development plans in most developing countries. However, opponents and proponents have largely discussed the effectiveness of small and medium economic enterprises in Iran. This study aims to evaluate the performance of livestock enterprises which got loans under early return credit program and its impact on macroeconomic variables. Data were collected from a sample of 50 beneficiary and 24 non-beneficiary farms in Babol region in 1386. The matching method was used to safeguard comparison. The results of the study revealed that some of farms stopped their activity after two or three years. In the remaining farms, credit had a positive impact on employment and led to new investment. Finally, some recommendations are made to improve the situation.