Business And Markets

SIIGF Supports Investments in SMEs

The state-owned Small Industries Investment Guarantee Fund provided coverage for 6.223 trillion rials ($26 million) in investments in small and medium-enterprises in the past three years. 
SIIGF issued 839 investment guarantees during the period, 361 of which were for working capital of SMEs, Mohammad Reza Moqiseh was quoted as saying by IRNA.
The official said 183 guarantee agreements worth 1.9 trillion rials ($8.3m) were issued for starting small industries, whereas the number of investment guarantees for developing small industrial units was barely 70 with a total value of 225 billion rials ($978,000).
An investment guarantee is a special provision designed to protect investors from incurring losses from an investment that carries a high degree of risk. 
According to Moghiseh, knowledge-based firms, especially producers of exportable goods, and businesses capable of creating jobs top the fund's eligibility list.
Iran is home to 80,000 registered SMEs accounting for less than 10% of total exports. By definition, enterprises run by 50 workers or less, and 100 workers or less are considered small- and medium-sized as per categorization by Iran’s Small Industries and Industrial Parks Organization. 
SMEs earned €55 million in exports in the first 10 months of the last fiscal year (March 21, 2019-Jan. 20).

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