The Role of Industrial Incentives in Development of Small and Medium Industries

Abstract

Small and medium industries have had a significant impact on creation of new employment opportunities in recent years. In other words, in today’s modern world, small and medium industries have a significant role in variables like economic growth, competitiveness, and resolution of the ubiquitous unemployment crisis. Even though large-scale industries are still important in economic policy-making due to their economy of scale, the effect of massive production, experience, and organization, small and medium industries have some advantages including transportation, market size, regulations, choice effectiveness, and control. Accordingly, these industries have become the first choice for the production of most goods.
This study investigated the role of industrial incentives in the development of small and medium industries in East Azerbaijan province. Based on the review of articles, texts, relevant sources, and comments from experts, relevant indicators were defined for each component of industrial incentives. Based on these indicators, a questionnaire was developed with 30 questions. After testing the validity and reliability of the questionnaire, it was applied to statistical samples using stratified random sampling. Then the questionnaires were collected and the obtained information was analyzed using descriptive statistics as well as inferential statistics (Spearman correlation test r and step by step Regression). The results show that there is a statistically significant relationship between the variables in this study. and obtained Results of regression Analysis shows that across 4 indicators Industrial Incentives, 2 indicators of it, that is, Financial and Customal Incentives were appropriate predicators for Development of Small and Medium Industries.