Investigating the Role of Entrepreneurship Ecosystem in Iran’s Economic Growth

Entrepreneurship development requires a network of different elements, and this network is known as the entrepreneurial ecosystem. Entrepreneurship ecosystem refers to the elements—individuals, organizations or institutions— outside of the entrepreneur that motivate or impede a person’s decision to become an entrepreneur. Entrepreneurship ecosystems include the financial environment, government tax and support policies, government programs, infrastructure, dynamics and market capacities, basic and excellent education, Research and Development (R&D), and cultural and social norms. Improving the entrepreneurship ecosystem can boost economic growth through increased incentives for entrepreneurship and the development of small and medium-sized businesses. In this paper, the effect of elements of Iran’s entrepreneurship ecosystem has been studied. The study is based on the data obtained from Global Entrepreneurship Monitor (GEM) reports, academic publications, reports, and publications of government agencies and other stakeholders in the field of entrepreneurship in Iran and outside. To this end, according to the 2007-2017 Global Entrepreneurship Survey on Entrepreneurship and the World Bank’s Report on GDP, the problems of the Iranian entrepreneurship ecosystem, which hampered the economic growth, were examined. Based on the problems identified, it is suggested that existence of an organization with well-defined and transparent rules for financing entrepreneurs can save from the turbulent financial environment. Further, creating dynamic communication centers for linking industries and universities can improve the R&D transfer.