Chapter 1 of this paper introduce the background and the purpose of study; Chapter 2 describes the method and the framework I have used to conduct the research. However, as I have assumed that many readers of this paper may not be familiar with the current situation in Iran, I have added further background of the country in Chapter 3. Chapter 3 may feel not directly related to the purpose of the study however I thought that would be essential to understand the current situation in Iran in order to analyse SMEs environment. Chapter 4 presents the theories I have used in the research and remaining Chapters 5, 6 and 7 presents the data and analyse of the research.
Macro-environmental elements have a vital impact on companies. Traditionally, the government in most countries plays a significant rule in shaping the macro-environment of the country. Therefore, various government policies and programmes are important for managers in analyse of the future threats and/or opportunities of the market. This paper investigating in Iranian globalization policy impacts on SMEs environment and international trade.
Purpose- The purpose of this paper is to describe the impact of Iranian globalization policy on the SMEs environment and the corresponding effect on Iranian-Swedish trade.
Methodology/design/approach- This study has focused on SMEs environment in Iran. The research has been conducted through desk research and semi-structured interviews with fairly open framework with senior management of 13 Swedish and Iranian SMEs all active in Iranian market with international trade. The research is based on theories in relation to PEST analyse, the Uppsala Internationalization Model and Export Modes and Intermediate Entry Modes. A qualitative approach was used as the study focus on the management perception and motivation in the internationalization process.
Findings- The data has shown that the country high political risk has been the main barriers to international trade. However weak management capacities, low labour productivity and failure of government implementation of its policy had had a major impact on trade reduction and SMEs environment.
Keywords- SMEs, Globalization, Iran, Government policy, and Macro-Environment