545 SMEs Revived in 5 Months Gov't Rescue Plan for Industrial Units 80%

EghtesadOnline: A total of 545 small- and medium-sized enterprises were revived during the first five months of the current Iranian year (March 20-Aug. 21).

News ID: ۷۵۰۸۷۸

03 September 2020

According to Asghar Masaheb, the deputy head of Iran Small Industries and Industrial Parks Organization, the government scheme for the revival of recession-hit industrial units around the country is 80% ahead of the schedule, as the plans had targeted the revival of 300 units in the period, Shata reported.

Iran’s Industries Ministry plans to revive 1,500 recession-hit small- and medium-sized enterprises to reinstate 27,000 jobs by the end of the current fiscal year (March 20, 2021).

“The latest update marks a 36% progress in the total revival plan. With the resumption of operations of these units, over 9,800 jobs have been reinstated.”

Masaheb noted that Tehran tops the list of provinces with the highest number of revived units (51 businesses), followed by Qom and Isfahan with 44 and 41 industrial units respectively.

According to the official, there are more than 45,000 industrial units in 820 industrial towns across the country. Prior to the revival plan, 9,500 of the units were shuttered, which laid off thousands of workers.

About 93% of total industrial units in Iran are considered small, 4% medium and 3% large.

About 35,000 small and large units are currently under construction, he added.

By definition, enterprises run by 50 workers or less, and 100 workers or less are considered small- and medium-sized enterprises respectively, according to ISIPO.

Deputy Industries Minister Mohsen Salehinia said small- and medium-sized manufacturers located in industrial estates in Iran exported $2.4 billion worth of goods in the last fiscal year that ended on March 19, 2020, accounting for 5.8% of Iran's total non-oil exports ($41.37 billion).

He has been quoted by ILNA as saying that 27 new industrial estates will be inaugurated in the current year (March 2020-21), adding that the share of SMEs in exports is expected to increase.

According to Masaheb, 1,444 SMEs were revived in the last Iranian year (March 2019-20).

SMEs' share in Japan’s exports is at 60%, Taiwan’s at 70% and Singapore’s at 90%.