Determination of Success of Small and Medium Enterprises (SMEs) Supported by Agriculture Bank of the Province of Mazandaran in Iran

Leila Hassani, Seyyed Mojtaba Mojaverian and Esmaeil Yasari

Journal of Agricultural Science, 2012, vol. 4, issue 9, 230

Abstract: The SMEs Project was introduced as the third job creation project by the government; and it has been implemented in recent years. In this study, we have dealt with the factors influencing the success of the Small and Medium Enterprises (SMEs) that have received quick returns facilities from the Agriculture Bank of Mazandaran, Iran. The data in this research is documentary and includes 181 enterprises. The Logit model was used to determine the success of these SMEs in Iran. In this study, arrears installments of bank credit as a measure of success for SMEs were considered. Results show previous experience, investment timing and enterprises size had significant statistical effect on the success probability of SMEs. Taking the results obtained into consideration, it is suggested that the location and the feasibility of each project, the experience of the executive, and the size of the project (with respect to the credits needed), be taken into consideration by the officials of the Bank before the project is approved. The JEL classification System- L 25, C 21, G 21.

Date: 2012
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