Factors Affecting Growth and Development of SMEs (Case Study: Ardebil City)

The aim of the present study is the evaluating of the effective factors on the growth and development of small and medium enterprises. The research model has been formed using the variables of organization structure, business strategy, competitive structure, supply structure, demand structure, and governmental policies as the independent variables, and the growth and development of small and medium industries as the dependent variables. The current research method has been based on practical purpose and descriptive – survey research method and required data have been collected using questionnaires and survey method. Statistical population of this research has been areas 1 and 2 in the industrial city of Ardabil and has been selected through sampling of stratified random method and 200 acceptable samples have been collected. Data analysis has been performed by mean of explanation of structural equation modeling in Lizerl software and research results show that organization structure, business strategy, supply structure, governmental policies have significant relationship on the growth and development of small and medium enterprises and demand structure and competitive structure don’t have meaningful relationship on the growth and development of small and medium –sized industries.