External Financing and Firm Growth: Evidence from Micro, Small, and Medium Enterprises in Iran

Iman Cheratian, Saleh Goltabar (), Hassan Gholipour Fereidouni and Mohammad Reza Farzanegan ()
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Saleh Goltabar: Tarbiat Modares University

MAGKS Papers on Economics from Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung)

Abstract: This study examines the relationship between access to finance and growth in sales for Micro, Small, and Medium Enterprises (MSMEs) in Iran. Using data from 486 firms in five provinces, our findings indicate that external financing positively impacts sales growth for MSMEs. The results suggest that financing for research and development expenditures, production diversification, new employment and advertising can significantly contribute to increased sales growth. We also find that spending on intellectual property, labor training and land and building acquisition have a negative moderating effect on the relationship between finance and sales growth.

Keywords: Finance-sale growth nexus; Micro, Small, and Medium Enterprises (MSMEs); Iranian economy; External financing (search for similar items in EconPapers)
JEL-codes: G21 G32 G38 O16 O53 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2023
New Economics Papers: this item is included in nep-ara, nep-cfn, nep-ent, nep-fdg, nep-isf, nep-mfd and nep-sbm
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Persistent link: https://EconPapers.repec.org/RePEc:mar:magkse:202308

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