Economy, Business And Markets

Experts Urged to Assess Needs of Industrial Parks

Experts Urged to Assess Needs of Industrial Parks
Experts Urged to Assess Needs of Industrial Parks

The deputy minister of industry, mine and trade on Friday called for closer interaction and cooperation between the Organization of Small Industries and Industrial Parks with the State Organization for Registration of Deeds.

 According to Mohammad Ali Abrishami, active engagement of specialists and managers of the deeds and properties organization in addressing the challenges and problems in industrial parks would, among other things, “would bring the two sides closer” and help underpin the economic interest of the country, IRNA reported.  The meeting “was held to address several critical issues, namely implementation of laws related to issuing ownership and management of industrial parks, and problems plaguing provincial companies affiliated to the Organization of Small industries and Industrial Parks.”

Such gatherings also seek to “promote a better understanding of problems and ultimately resolve them while encouraging meaningful cooperation between industrial parks across the country,” the official was quoted as saying.

In line with amendments to Article 44 of the Islamic Republic Constitution, affairs of industrial parks and affiliated bodies should be handed over to the private sector, he recalled, adding that to do so, a special “board for service-based companies will be set up that will be in charge of industrial parks and areas.”

A total of 941 industrial areas and parks have been registered in the country of which 734 are to be delegated to would-be investors and businesses. The parks and special zones employ 670,000 people in 32,000 units.

Four development-oriented organizations are currently active in Iran. “It has been established for the lawmakers that the primary mandate of the Organization of Small Industries and Industrial Parks is the economic and industrial development of the country,” the news agency quoted the deputy minister as saying.

 Role of SMEs

As of 2014, 81,000 small industrial units employed more than one million workers in Iran. Small industries constitute 92 percent of its industries, 45 percent of the country’s industrial employment, and 17 percent of the total production.

Because of its weakness or absence, the support industry makes little contribution to the innovation/technology development activities. Supporting the development of small and medium enterprises will strengthen greatly the supplier network in Iran.  

Difficulty in accessing financing is also a major concern for small and medium enterprises.

 One report by the United Nations Industrial Development Organization regarding the state of SME’s in Iran identified these causes as the ones impeding Iran’s industrial development: lack of monitoring institutions, inefficient banking system, lack of sufficient R&D, shortage of managerial skills, corruption, inefficient taxation, socio-cultural apprehensions, absence of social learning loops, lack of familiarity with international markets necessary for global competition, cumbersome bureaucratic procedures, shortage of skilled labor, lack of intellectual property protection, shortage of research centers, lack of social capital, social learning, social responsibility and socio-cultural values.[13]

Despite these problems, recent studies reveal that over the past few years Iran has progressed rapidly in various scientific and technological fields.