Economy, Business And Markets

69,000 Jobs Created by SMEs in 2 Years

69,000 Jobs Created by SMEs in 2 Years69,000 Jobs Created by SMEs in 2 Years

In the past two years since the government of President Hassan Rouhani took office, 4,301 industrial units have become operational in the industrial parks and zones across the country, creating more than 69,000 jobs.

Managing Director of Iran Small Industries and Industrial Parks Organization Mohamamd Ali Seyyed-Abrishami made the above statement at a press conference on the occasion of the Government Week, which started on August 24, IRNA reported.

He noted that 3,140 contracts were signed during the period between ISIPO and private investors in the industrial zones, adding that the management of 183 industrial parks was also transferred to the private sector.

In addition to transferring the operational affairs of industrial parks to the private sector, ISIPO has also revived 1,400 hectares of land from unfinished industrial projects which were approved in previous years, Seyyed-Abrishami said.

In the past 23 months, 48 new industrial parks and industrial zones became operational, while 758 more industrial zones are ready for land allocation to the private sector, he added.

Supporting small and medium enterprises is among major policies of the sixth five-year economic development plan (2016-21), outlined by the Leader of Islamic Revolution Ayatollah Seyyed Ali Khamenei.

Seyyed-Abrishami said ISIPO has prepared a special report on the main challenges and barriers to development of small industries and submitted it to the office in charge of drafting the sixth plan.

Boosting the share of industrial sector in the gross domestic product and improving the working environment for small enterprises were mentioned by the official as ISIPO’s other main objectives.

“Currently, 81,000 small industrial units are active across the country, of which 26% are working at more than 70% capacity, 30% between 50-70%, 27% below 50% and the rest are inactive,” he said.

He added that of the total industrial units in the country, 34,606 are established in the industrial parks and industrial zones, while only 28,378 of these units are currently operational.

“To help activate the idle projects and upgrade small industrial units, ISIPO has signed agreements with a number of banks to provide the required funding for the purchase of new machinery and renovation of the industries,” he noted.

Seyyed Abrishami announced that the Ministry of Industries, Mining and Trade is in talks with the Management and Planning Organization and the Ministry of Labor, Cooperatives and Social Welfare to sign an agreement with three banks to provide financial support to small industries.

In a fast changing market environment, smaller enterprises are critical to the growth of economies, to the prosperity of communities and to the success of large businesses.

A recent study published by the International Labor Organization concluded that small- and medium-sized enterprises account for two-thirds of all formal jobs in the developing countries of Africa, Asia and Latin America.