Contextual factors of entrepreneurship intention in manufacturing SMEs: the case study of Iran

Abstract

Purpose

The purpose of this paper is to establish the contextual factors that influence entrepreneurial intention to start the small and medium enterprises (SMEs) in Iran and to investigate why some manufacturing sector entrepreneurs achieve growth objectives while others do not.

Design/methodology/approach

In-depth semistructured interviews of 25 participants were used to investigate the contextual factors of entrepreneurship intention. On the basis of the data collected, a thematic content analysis has been carried out.

Findings

A set of contextual and cultural factors has been highlighted by the analysis. Data analysis led to the extraction of three main themes: external, internal and personal factors that were found to be significant determinants of entrepreneurship intention. In relation to the effect of these factors on their entrepreneurial behaviors, it emerged that there were the major barriers to entrepreneurial intentions including lack of resources, financial challenges and economic situation, which affected how they made strategic decisions about their plans. Moreover, the findings show that the key dimensions of organizational structure, public policies, social media, education and soft skills development are vital features and being influential in entrepreneurship.

Research limitations/implications

The study has industry-specific, size-specific and region-specific limitations. The qualitative research approach affects the generalizable character of the results.

Practical implications

The research findings have important implications for practicing entrepreneurs, start-ups and policymakers. The manuscript suggests a transition to a more collaborative approach from experts and practitioners in the field through policymakers to tackling the underlying determinants of entrepreneurship intention in Iran as a motive to economic growth. This research is significant since its findings should help regulators and investors better understand the opportunities and threats among manufacturing SMEs. This study implies a step forward in research into the entrepreneurship intention and SMEs literature, since the results differ from the evidence found for large companies in developing countries such as Iran. There is also a great contribution toward the debate regarding the need to consider the context and the type of firm in enterprise development studies.

Originality/value

This is the first empirical study conducted in Iran that explores three key elements of entrepreneurship intention interactively in Iran through qualitative research analysis. The research study fills a literature gap on the determinants of manufacturing SMEs’ functions. This manuscript explores the contextual factors that influence on entrepreneurial behavior in a conflict country context, using a thematic analysis for in-depth results. A new approach to evaluating entrepreneurial opportunities was used. The advantage of this empirical strategy is that it takes into account in more detail the content observations and experiences with the industry-specific insights. It also gives more description about the contingent nature of practice. Moreover, this qualitative research acknowledged the areas of conflict and contradiction around entrepreneurship phenomena among SMEs.

Citation

Ahadi, S. and Kasraie, S. (2020), "Contextual factors of entrepreneurship intention in manufacturing SMEs: the case study of Iran", Journal of Small Business and Enterprise Development, Vol. 27 No. 4, pp. 633-657. https://doi.org/10.1108/JSBED-02-2019-0074