A MODEL FOR RANKING THE IRANIAN PROVINCES WITH RESPECT OF SMES CREDITS

The creation of Small and medium-sized enterprises is seen, by many governments and donor agencies, as the key to economic and social development in countries regardless of level of development. Furthermore, review of the literature show evidence that SMEs are understood as a source of technology development. At the same time they are vulnerable to a number of restrictions such as access to finances, skilled labor, public support and suffer from survival rate problems. First, this research aims to shed lights on the role that Small and medium-sized enterprises play in the process of industrial and economic development across provinces of Iran. Second, the status of industrial infrastructure is investigated. The data is used to estimate parametrically and non-parametrically a number of composite infrastructure indices to investigate the credit component. Finally based on the findings, results and conclusion will be drawn, and guidelines for policy formulation will be suggested. The study aims to contributing to the existing literature about Small and medium-sized enterprises and filling the gap that exists in the knowledge about them in developing countries and Iran as a case. For our study, use of sub-indices and a composite of credit component can help provinces to evaluate their status of industrial infrastructure.