Introduction of Effective Drivers for the Success of Small and Medium-Sized Entrepreneurial Businesses

Subject Areas : Public administration

mohammad TermehForoushan Tehrani ¹ , Sayyed Mohammad Reza Davoodi ² , elham gholamy ³

1 - Islamic Azad University, Dehaghan branch
2 -
3 - دانشجوی کارشناسی ارشد، مهندسی مالی و مدیریت ریسک، واحد دهاقان، دانشگاه آزاد اسلامی، دهاقان، ایران

Received: 2024-10-06 Accepted : 2024-10-19 Published : 2024-11-10

Keywords: Human Resource Management, Technology Adaptation, Environmental Policy, MSME, Entrepreneurship.,

Abstract :

Introduction of Effective Drivers for the Success of

Small and Medium-Sized Entrepreneurial Businesses

Mohammad Tarme Foroshan Tehrani

PhD student in public administration, Dahaghan Branch, Islamic Azad University, Dahaghan, Iran

ORCID: 0009-0000-1744-559x

[e-mail]

Sayyed Mohammad Reza Davoodi

Associate Professor of Management and Faculty Member, Dehaghan Branch, Islamic Azad University, Dehaghan, Iran (Responsible Author)

ORCID: 0000-0003-2347-7154

[e-mail]

Elham Gholami

Master's student in financial engineering and risk management, Dahaghan Branch, Islamic Azad University, Dehaghan, Iran

ORCID: 0009-0004-9822-8720

[e-mail]

 Received: 6 October 2024 | Revised: 16 October 2024 | Accepted: 19 October 2024 

 Extended Abstract

Small and medium enterprises play an important role in the country's economy, but face various challenges such as effective management of human resources and adaptation to new technologies; they need to be improved especially in environmental policies and entrepreneurial innovations.

 For this purpose, the present research aims to introduce the effective drivers for the success of small and medium businesses of entrepreneurs. After reviewing the research literature, the effect of human resource management practices, adaptation to technology, and compliance with environmental policies on the entrepreneurial success of small and medium enterprises in Isfahan was analyzed. The study was conducted with a quantitative approach using structural equation modeling and data collected from 127 small and medium-sized companies in Isfahan. The statistical population included all small and medium-sized companies active in this region and randomly sampled.

The results show that effective human resource management practices, technology adaptation, and environmental policy compliance have a positive impact on entrepreneurship and the success of small and medium enterprises.

This study provides strategic implications for entrepreneurs, policymakers and stakeholders and suggests solutions to increase the growth and sustainability of micro, small and medium enterprises in Isfahan.

The adoption of new technologies by SMEs was identified as one of the main drivers of entrepreneurial growth. These companies were able to significantly increase productivity and operational efficiency by integrating modern technologies into their operational processes.

 These findings indicate that the use of technology not only increases productivity but also expands access to new markets.

Compliance with environmental policies was also identified as one of the important factors for the success of SMEs in Isfahan. By adopting sustainable environmental policies, these companies were not only able to optimize their resources but also succeeded in attracting customers and investors committed to social responsibility Permatasari & Gunawan (2023).

Also, environmental policies were recognized as a driver of innovation that drives companies to exploit green and efficient technologies. The findings of this study have important strategic implications for entrepreneurs, policymakers, and other stakeholders in Isfahan and other similar regions.

This research shows that in order to improve the sustainability and success of small and medium-sized enterprises, it is essential to pay attention to human resource management practices and adapt to technology, and environmental policies.

 Therefore, policymakers should take serious steps to facilitate these companies' access to new technologies and promote strategic human resource management practices.

However, this study faced several limitations. First, the study focused only on SMEs in Isfahan, which may not fully generalize the results to other regions. Second, the data were collected cross-sectionally, which may limit our ability to assess long-term changes.

Finally, the study focused more on quantitative methods and less on qualitative methods.

For future research, it is suggested that studies be replicated in different geographic regions and industries and that longitudinal and qualitative methods be used to more comprehensively examine the factors affecting the success of SMEs.

 Examining the effects of moderating factors such as organizational culture and government policies can help to better understand the complexities surrounding SME entrepreneurship.

Keywords: Human Resource Management, Technology Adaptation, Environmental Policy, MSME, Entrepreneurship.

Contribution of authors

All authors have participated in this research in equal proportion.

Ethical approval

Written informed consent was obtained from the individuals for their anonym zed information to be published in this article.

Conflict of interest

No conflicts of interest are declared by the authors.

References:

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