Small Enterprises Operating Below Capacity
Economy, Domestic Economy

Small Enterprises Operating Below Capacity

Although small enterprises account for 92% of Iran’s industrial production units and constitute 45% of industries’ employment, these businesses have not been faring well lately.
According to Eghtesad News, about 6,000 industrial production units are facing bankruptcy and more than 20,000 small enterprises are operating at less than 70% of their capacity.
“Surveys indicate that about 70% of non-operational production units have cited liquidity shortages as the main cause of bankruptcy,” said deputy director for economic affairs and planning at Small Industries and Industrial Parks Organization, Farshad Moqimi.
The shortage of liquidity, according to the official, comes as banks “simply do not trust small enterprises” to provide them with much-needed loans.
“Small enterprises mostly put forward elaborate and innovative projects. However, banks happen to have difficulty evaluating these projects properly, which leads them to assess risks way higher than they actually are,” he said.
The official noted that even if small startups manage to beat the odds and succeed in getting the loan, most of them are unable to cope with high interest rates.
To address these woes, the Bank of Industry and Mine is going to allocate $5.8 billion in loans to small enterprises to revitalize production and get them back on their feet.
Moqimi added that the Small Industries and Industrial Parks Organization has reactivated 340 small production units during the first half of the current Iranian year (started March 21) and is planning to increase this figure to 1,000 by the yearend.

Short URL : https://goo.gl/6Ah4az
  1. https://goo.gl/D4LPST
  • https://goo.gl/oAN3xc
  • https://goo.gl/RS4IQ9
  • https://goo.gl/7qR2ro
  • https://goo.gl/RkfNhn

You can also read ...

Iran Petrochemical Revenues at  $5.5 Billion in Six Months
Iran exported $5.57 billion worth of petrochemical and polymer...
OIC is an international organization consisting of 57 member states.
The countries of the Organization of Islamic Cooperation...
Private banks and non-bank credit institutions held the biggest share of foreign assets among Iranian financial institutions.
The total value of Iranian banks’ foreign assets by August 22...
Calm Housing Market Forecast for Tehran in Fiscal H2
The Iranian housing sector, which has just entered a pre-boom...
Iran Fortifies Ties With IDB, Malaysia
Minister of Economic Affairs and Finance Masoud Karbasian met...
Ahmad Araqchi (R) meets Alexey Tyupanov
The Central Bank of Iran has signed an agreement with the...
In Iran, import tariffs on apparel are set at 55%, apart from a 9% value-added and an additional 4% tax.
About 1,840 tons of apparel worth close to $22.75 million were...
Upswing in  US Dollar
The US dollar, the most widely traded currency in Tehran’s...