Over 3,500 knowledge-based firms and several thousand startups are operating in Iran. The revenue of these companies during the last fiscal which ended in March surpassed 600 trillion rials ($14.2 billion), an impressive 50% YoY spike, Iran’s Vice President for Science and Technology told reporters.
Praising Iran’s thriving startup ecosystem, Sorena Sattari said, “There are startups with a weekly growth rate of 10%.”
He outlined government plans for knowledge-based firms and startups on the sidelines of a tour of Qarchak industrial park, southeast of Tehran, on Sunday, ISNA reported.
According to him, the government aims to help double the economic growth of knowledge-based firms in the current Iranian year which started in March, taking advantage of the country’s immense human capital.
Sattari noted the substantial expansion of IT-related startups and firms, adding that “our growth during the previous year was acceptable but is still a far cry from the goals we have set. We will try to sustain and accelerate this progress.”
The Vice Presidential Office for Science and Technology prides itself on expanding startups and knowledge-based firms over the past five years which is in effect a way of supporting local production.
An Imperative
During the visit to the park, the progressive politician also visited the Hasin Group, a company active in financial technology (aka fintech) and reminded company representatives that transparency in the sector is vital.
The Hasin Group is comprised of over 12 companies in various areas such as business to business banking software, content delivery services, smart cards, payment terminals, hardware security module and much more.
Fintech gives the public easy ways of accessing financial services using technology. The variety of companies active in the field and the competition among them has led to fair prices.
Sattari is of the opinion that government-funded projects are a temporary fix and the economy needs innovation and creativity to prosper. He reproached Iran’s model of economy saying “oil economy thwarts growth” and stressed the need to move toward a knowledge-based economy.
He said, “Venture capital must supply 30-40% of investments [needed in the sector].”
The vice president paid a call on one of the biggest upholstery factories in the Middle East located in Qarchak, which has created employment for 500 people.
“The factory has the capability of producing four million square meters of fabric and half of the production is exported. The factory will create employment opportunities for 1,000 people after production goes into full swing,” he said.
The factory has helped address the joblessness problem in the small town of Qarchak.
