News

Iranian SMEs Open for International Business, But on Their Terms

Academic research on Iranian managers is scarce, mainly because of the lack of business ties with foreigners and longstanding international sanctions. Relatively little is known about how Iranian managers, particularly those at smaller enterprises, perceive business collaboration with outsiders. In order to address this knowledge gap, we have conducted a major survey among Iranian managers in the industrial sector. The aim of this original research, conducted as part of studies at the University of Geneva and the University of Savoie Mont Blanc, is to help Swiss, and more broadly European, businesses better understand the expectations of Iranian small and medium-sized enterprises (SMEs). The goals of this research are as follows:

  1. Address the perception of Switzerland by Iranian SME managers in the industrial sector
  2. Identify the expectations of Iranian managers when entering into a partnership with a Swiss company
  3. Outline the importance of informal networks and the role of the “in-group” aspect in Iranian culture

A quantitative survey was conducted covering 101 managers from the textile industry, based primarily in Tehran and Kashan. These managers represent 87 different companies, of which 97 percent employ less than 250 people and therefore qualify as SMEs.

This survey clearly indicates the willingness of Iranian SME managers to do business with foreign companies and reflects the belief of these managers in international cooperation. When asked about the importance of an international network of business partners, a resounding 99 percent considered such a network “very” or “extremely” important. Currently, international connections are being established: 87 percent of the surveyed managers say that foreign companies have approached them for potential partnerships.