Beyond Sanctions: Unpacking Growth Moderators for Iranian MSMEs

چکیده مقاله

Abstract

This paper examines the relationship between international sanctions and sales growth in Micro, Small, and Medium Enterprises (MSMEs) in Iran. Based on data from 486 enterprises across five provinces, our study demonstrates a negative association between economic sanctions and sales growth in Iranian MSMEs. Conversely, we find that firms' access to external financing, technology, managerial education, and new employment has positive and significant effects on their growth. Additionally, we observe that firms' aging and labor adjustment have negative impacts on the sales growth of MSMEs. Finally, the study suggests that firms that have received financing and benefited from required technology and managerial education may have mitigated the negative impacts of international sanctions on their growth. However, the adverse effects of sanctions on growth are more pronounced for firms facing obstacles in accessing external finance.