Entrepreneurship and Higher Education: Relationship between Management and SSI Perform ance in Iran

Abstract

The importance of small scale industries in Iran’s economy is being increasingly recognised. That the economy can grow faster in 21 st century depends on expansion and improvement of SSI functioning. Because SSIs play a vital role in job creation and innovation, the development of modem SSIs has been one of the most significant and characteristic features of industrial development (Iran Small Industries and Industrial Park, 2003). Of course, increase in the number, production, employment and export of SSIs over a period of time emphasise the role played by small enterprises in the country. A comparison of the sector’s performance during 2004 and 2005 indicates a growth of 23 per cent of the total export, 20 per cent of the manufacturing output, 3 5 per cent indirect investment, 18.4 per cent value added and 4 per cent in employment creation. In addition, the SSIs have emerged as the most dynamic sector of Iran industrial economy accounting for over 80 per cent of the industrial sector.