Entrepreneurship in Iranian Car Industries | ||
Entrepreneurship in Iranian Car Industries
Dr. Ali Rabiei (PhD, Associate Professor) Masoumeh Piryaei (BA, Executive Management
Introduction Societies and organizations are rapidly developing and progressing si-multaneous with a high rate of population growth. Consequently, there is a dire need for entrepreneurship in this very complicated situation which re- quires multilateral interactions and cooperation, i.e. both in realizing the de- velopment goals through innovation and improving the procedures, and with regard to key factors of economic growth. Today, entrepreneurship can be considered as one of the most fundamental strategies for development in any country. Despite vast studies about entrepreneurship and related ields during the recent years, it is still in the early stages of its growth. This is why recent studies have focused on conceptual and methodological discussions on en- trepreneurship. Entrepreneurship is a system for empowering people to ap- ply creativity of the employees in a well-planned and systematic way. In spite of the importance of entrepreneurship, little studies have been carried out on individual and organizational entrepreneurship to ind out the obstacles to the growth of entrepreneurship in an organization. In this research, attempts have been made to review the previous studies on entrepreneurship and also identify and classify factors that inluence the course of entrepreneurship. Today, the rules of competition have become very complicated and myste- rious so that institutions and countries can no more rely on minor changes in their methods, structures, technologies and the like to guarantee their long- term survival in the market. This is why organizations and countries must bring about great changes in the attitudes of their staff and managers to revolutionize the concepts of organization, labor, quality and competition. In this sense, the traditional role of the manager will lose its relevance. In such a situation, organizations and countries need entrepreneurs to give life to the nation and institution through creativity, innovation, hard-working, self- conidence, etc. Therefore, in a larger spectrum, all the active elements in the arena of economy, including the producers, consumers and investors, must pay serious attention to entrepreneurship. This is because the impact of entrepreneurship on the society is great, covering a wide spectrum from the change in social values to rapid economic growth. In this study, questionnaires illed by automotive experts and managers have helped us analyze the data and give new deinitions of entrepreneur- ship in addition to highlighting threats and opportunities as well as internal and external obstacles to the entrepreneurship in Iran’s automotive industry. In the end, we have brought some proposals for alleviating the problems and reducing the obstacles to entrepreneurship.
Keywords: Entrepreneurship, Environmental Opportunities, Bottlenecks, Obstacles, Innovation, Automotive Industry
Research Methodology The research method in this work is descriptive in view of the nature of research and is a cross-sectional survey. Both qualitative and quantitative techniques have been used for the analysis of the data. The statistical population of this research consists of specialists, experts and managers of the Iranian automotive industry. Some factors believed to serve as obstacles to the development of automotive industry were identified and formulated in the form of a questionnaire. The questionnaire included 35 questions on determining the level of entrepreneurship, innovation and the pertinent factors, as well as the obstacles to the automotive industry, wherein respondents were asked to mark the importance of each issue.
Definition of Entrepreneurship • According to Steve Mennen, entrepreneur is someone who is responsible for preliminary collection of resources for a new business or someone who mobilizes required resources for commencement or development of a business. The focus is therefore, on innovation and development of the new products and services. (Rezaian, 1998) • Robbins defines entrepreneurship as: Entrepreneurship is undertaking risks, pursuit of opportunities, meeting the demands and requirements through innovation and establishment of a business. Entrepreneurs are the people who play several roles (Ibid.). • Entrepreneurship is a procedure that leads to realization of satisfaction or meeting a new demand. In this definition, entrepreneurship is the procedure for value generation through establishment of a unique collection of resources for utilization of opportunities (Ahmadpour, 1998). • According to Pettigrew entrepreneurship is indeed the same ability and responsibility of the entrepreneur himself out of mobilization of human resources and leverage of other resources in line with initiation of a business based on a certain goal in congruence with a newly established institution and management of the new institution (Pettigrew, 1979). • Another definition indicates that entrepreneurship is the use of environmental opportunities, technical and institutional innovations, and leverage of sparse and scattered financial resources for meeting the economic demands of the society through establishment and development of new risky businesses. (Tadbir 2008) SEPTEMBER 2013 | No. 17 Some consider entrepreneurship as a lifestyle. They even highlight entrepreneurship as a school of thought. To them, the basics of entrepreneurial life rest on creativity and innovation, dynamism, love of labor, incessant work, risk-taking, farsightedness, value generation, idealism, opportunism, the need to growth, positivity and individual competition (Samad Aghaei, 2001). • Miner (1990) refers to the relationship between entrepreneur and manager as: The managerial behavior of entrepreneur comes to an end with the establishment of an institution or corporation and entrepreneurship undertakes new roles during its growth depending upon the company, or delegates capital control to professional management. • Peter Drucker (1985) believes that entrepreneur is someone who begins a probable small and new business with his own capital. From his point of view an entrepreneur possesses the following characteristics: - Entrepreneurs change values and revolutionize their nature. - They are risk-takers. - They need capital for their business but they never turn to be investors. - They often make right decisions. - They work based on applying managerial concepts and techniques, standardization of products, utilization of design tools and procedures, and institutionalization of their works based on training and analysis. - And finally, entrepreneurship is a behavior and a specific trait of the personality of individuals. Hence, entrepreneur is someone with a special behavior and such a behavior brings about drastic changes and development in his environment. Organizational entrepreneurship is a process through which organizations become familiar with their opportunities and creatively organize production factors for more value-added (Jones and Tyler). To alleviate unemployment in the society and gain readiness for economic competition it is necessary to train creative and efficient ideas to cope with the new world. Along with occupational advice and planning, the need for wise economic, social and political policies is felt more than ever. This will help presentation of appropriate methods on various levels for upbringing creative and efficient manpower to prevent unemployment and its adverse aftereffects (Chamberlain, 1997). Attention to the labor market, or more precisely, a closer approach to the future of occupation in social and psychological studies and in relation with other study areas of the social sciences exert great influence on perceptional, sensational and behavioral areas. This approach will pave the way for various impacts, consequences and complications in political, economic and cultural areas of every society (Sohrabi, 1997, quoted by Ahmadi, 2006). Entrepreneurship is a procedure for creation of something valuable and different through faith in God and sufficient effort along with risk-taking, whether financial, social, or psychological ones. This is accompanied by financial rewards and personal satisfaction over the results (Hisrich and Peters, 2002). Entrepreneurship is a value generating process through establishment of a unique collection of resources in pursuit of opportunities (Ahmadpour Daryani, 2001). Entrepreneurship is a multilateral concept or a risk-taking, innovation and preemptive procedure in creation or control of events (Liu S.S. Dubinsky, 2000). Feizbakhsh, Bazargan and Dehqanpour Farashah (2002) have given the following native definition of entrepreneurship in Iran: Entrepreneurship is a process for utilization of opportunities and establishment of a new business based on efforts and endeavors, undertaking financial, social and psychological risks, innovation, etc. meant to realize financial gains. It is carried out for financial independence or because of indigence. Prosperity, personal satisfaction, patriotism and people’s progress guarantee sustainability of this process. There is no unique definition for entrepreneurship. Since its introduction, various definitions have been presented for entre SEPTEMBER
preneurship. Specialists and experts, depending on their field of activity, have given their specific definitions of entrepreneurship. Economists have defined entrepreneurship in terms of wealth production and distribution in the society. Their definition is more functional because of economic growth and profitability. Psychological researchers have focused on individual and psychological aspects of entrepreneurship in their definitions. Sociological experts have defined entrepreneurship in terms of internal motifs of the individual for social development and in terms of the social environment (Ahmadpour, 1998). Since the 16th century, economists have studied the individual and personal traits of entrepreneurs. Psychologists have come to the help of economists by presenting certain ways for studying the personality differences and relationships between entrepreneurs, managers and non-entrepreneurs. The failure of psychological researchers to present a comprehensive model for making a distinction between entrepreneurs and non-entrepreneurs, and lack of a certain criterion for evaluation of individualistic traits of entrepreneurs has forced sociologists to present new approaches to entrepreneurship. In other words, entrepreneur is someone involved in the growth of individuals and in creation of a business, whose attention is chiefly on development of products and services. An entrepreneur begins his work with high risk and improves his business by innovative tools (Ferry, 1993). According to economists, entrepreneurship, creativity and risky businesses serve as the engines of economy. Entrepreneurs are at the frontline of risky endeavors. They are always in pursuit of opportunities. Creativity turns to be their tool of success. They take variables as some ordinary things. They are always in search of variables. Entrepreneurs transfer resources from areas with low productivity to the areas with high productivity (Moqimi, 2004). Evaluation of Meta Analyses and Findings ENVIRONMENTAL OPPORTUNITIES
Cultural Structure Culture is an infrastructure for entrepreneurship. The Iranian society is one of the most appropriate grounds for promotion of entrepreneurship because of its special cultural structure, religious and national beliefs, interest and conviction in collective work and social mobility.
Economic Structure Iranian economy has three pillars, namely, agriculture, industry and services. These three areas of economy have very close interactions and relations with one another because Iranian economy is chiefly a micro-economy rather than being a macro-economy. In this sense, it can provide an appropriate ground for entrepreneurship.
Environmental Restrictions Government policies have proven to be the major restrictions to entrepreneurship, because they are in contradiction with entrepreneurship and its improvement and promotion. Appropriate economic patterns and free economy are encouraging conditions for the entrepreneurs. An entrepreneur must not be entangled with non-economic societies, he must not be pinched with bureaucracy. This is possible in a free economy. A glance at Iranian economy, however, indicates show that the Iranian economy immensely suffers from state monopoly. The government is directly involved in the majority of economic activities.
External Obstacles 1- Labor law 2- Social Security Act 3- High insurance premium 4- Tax law 5- Export and import law 6- Banking and monetary laws 7- Labor councils 8- Investment Lack of economic security, problems resulting from tax laws, rules and regula tions, allowing state interference in sales and production, instability and lack of transparency in laws, government interference in all economic affairs, strict bureaucracy, relations with foreign countries and some other problems serve as hurdles to entrepreneurship in Iran.
Internal Obstacles Lack of appropriate utilization of opportunities by corporations, lack of awareness of senior officials of entrepreneurship, lack of management capacity, vision and institutionalized objectives are among the internal obstacles to entrepreneurship. These problems prevent realization of entrepreneurship in an institution. Creativity and innovation are the main prerequisites for realization of entrepreneurship. Creativity is the emergence, growth and perfection of a new idea or thought, while innovation is realization of an idea or thought. Thought, effort and endeavor, wisdom and consistency are the necessary factors for success. Creativity needs the following four stages to take place: 1- Acquiring knowledge and garnering data 2- Training creative people 3- Analysis of ideas 4- Evaluation and implementation The relationship between creativity and innovation is important, for they are indeed two inseparable components of entrepreneurship. Creativity and innovation are equally needed for individuals and institutions. An entrepreneur is someone who identifies an idea or opportunity for creation and presentation of a product or a service. Despite various problems and obstacles, an entrepreneur realizes the role of profitability in progress and development. In fact, profitability comes from entrepreneur’s intelligence, creativity, innovation and farsightedness. Obstacles to Organizational entrepreneurship in Iran The obstacles and problems of the organizational entrepreneurship in Iran can be studied in the light of three factors: 1- Anti-motivational factors of entrepreneurship: Among the chief anti-motivational factors for entrepreneurship in Iran is the fear of losing one’s capital, unaffordability to finance a new business, concerns about time-consuming required legal preliminary stages, concerns about social losses, financial corruption and concerns about skills and experience. 2- Legal obstacles to entrepreneurship: Among chief legal obstacles to entrepreneurship are banking rules and regulations, tax laws, trade laws, labor laws, state monopoly, customs duties and formalities, municipalities, etc. 3- Environmental shortcomings: lack of commercial, professional and vocational infrastructures required by the new and developing companies, failure of financial, social and cultural norms to support entrepreneurship, lack of physical infrastructures for new and developing companies, lack of financial supports for the new and developing companies and inconformity of the educational system with entrepreneurship. Some other cases can be added to the above problems which are mainly related to organizational entrepreneurship such as inappropriate executive procedures in relation to human errors in the organizations, dominance of traditional relations in the market, duty-oriented structures and no belief in collective management, uniform reward policies for all, promotion of compromising personnel, operational problems, insufficient institutional supports for entrepreneurial activities, etc.
External Obstacles 1- Labor law: It is one of the most important obstacles to entrepreneurship. 2- Export and import laws: Foreign trade plays a key role in the economy of any country. Appropriate laws help development of the country through exports and imports. They are considered among encouraging factors for entrepreneurs. 3- Social security law: It is one of the most important capital production factors that plays a key role in promotion of entrepreneurship. Despite the existence of ample liquidity in Iran, investors show little interest in investment (Sima Siami, News on Economy, 1995). Internal Obstacles 1- Companies have proven to be more concerned about threats than opportunities. They consider environmental developments as a threat rather than an opportunity. In this sense, their reaction is more to remove threats than utilizing opportunities. 2- Normally companies give little chance to their staff in their pursuit of new thoughts. 3- Companies suffer from shortcomings in training entrepreneurial services. Studies show that there is no appropriate ground for promotion of entrepreneurship in large and small enterprises and there is a need for more serious measures in this regard. On macro level, it is necessary to formulate appropriate policies for promotion of entrepreneurship in line with the industrial and technological development strategy. This policy-making should embrace financial and information support to entrepreneurship, creation of organizational network, organizational training and culture as well as reformation and removal of legal obstacles, etc. These measures can be carried out by responsible policymaking organizations such as Industrial Renovation and Development Organization (Jalil Samad Aghaei, Entrepreneur Organizations, 1999). The following measures should be taken with regard to business units: 1- Promoting the awareness of the senior managers about entrepreneurship and its importance in the current competitive market. 2- Defining the missions in a systematic through a futuristic approach, setting the organizational goals and strategies in a comprehensive manner, establishing innovative teams and working groups to follow up new ideas in the organization, designing and enforcing diverse information systems, monitoring market changes and R & D activities, training of the staff about the techniques of creativity. These measures can pave the way for promotion of entrepreneurship in the organization. Organizational Entrepreneurship Environment Certain factors and guidelines should be observed in creation of organizational entrepreneurship (Borkelmans, 1983). The first factor is that every organization is run based on the thresholds of technology. Since R & D about resources is a key to success in production and presentation of new products, the company should seek technological and industrial superiority. Instead of allowing new ideas to perish away, companies should encourage and promote them. Second factor: experimentation or trial and error policy must be encouraged and promoted. A company trying to create a spirit of entrepreneurship must be able to create an atmosphere in which failures and mistakes are recognized as prerequisites for production of innovation of new products. Third factor: every organization must make sure that there is no obstacle to creation of new opportunities. Fourth factor: the corporate resources must be easily accessible for use (Jim Berly, 1979). An institutional entrepreneur used to say: “If the organization really expects me to spend time and energy on occupational risks for creation of new entrepreneurship activities, it must be able to spend money.” Fifth factor: the organization must promote the spirit of multilateral team work. The contribution individuals – irrespective of their area of activity – is in contrast with organizational structural approach. Sixth factor: institutional entrepreneurial spirit must not be imposed on individuals. It should be voluntarily accepted by them. There is a difference between organizational way of thinking and entrepreneurial way of thinking. Seventh factor is related to rewarding system. An organizational entrepreneur must be duly rewarded for all the energy he/she spends or for all efforts and risks he/she makes for creation of a new entrepreneurial activity. Eighth factor: the atmosphere in an enterprise favoring entrepreneurial activity lends institutional support to both successes and failures stemming from innovative efforts. The atmosphere of such an organization is also flexible in planning for new goals and new routes based on what is needed. Obstacles and Restrictions of Organizational Entrepreneurship 1- Nature of large organizations 2- Seeking short-term profits 3- Lack of entrepreneurial talents 4- Incorrect reward methods Creation of Organizational Entrepreneurship Model An organizational entrepredurship model is based on the following features: 1- Organizational specifications 2- Individual specifications 3- Unexpected events – environmental developments 4- Decision to carry out organizational entrepreneurial activities 5- Carrying out feasibility studies and planning 6- Access to the resources 7- Ability to push the obstacles aside 8- Realization of thoughts An organization seeking to realize organizational entre preneurship must take the following steps: 1- Managers at senior and median levels must be committed to help the realization of organizational entrepreneurship in their organization. 2- The ideas and general areas set forth by the senior management system must be classified and presented to the people. 3- The organization must make use of appropriate technology in order to be able to show flexibility when needed. 4- The organization can make use of the cooperation of employees for training entrepreneurship in a bid to promote the entrepreneurial culture. The organization must create a strong structure for institutional entrepreneurship. Today, given the crucial role of technology and industry in the development of society, we need to apply new sciences and technologies to boost the process of development. It is clear that creative and entrepreneur people play a key role in production, sales and use of products and services. Inattention to this fact will create many problems for the society. In Iran, entrepreneurs face many problems in terms of planning for ideas, obtaining certificates and presenting and developing their entrepreneurial plans. The most pressing problems in this connection are the mentioned below: 1- Sociocultural problems: In a society where traditional methods of production are followed, there is no possibility for entrepreneurs to work for independence, innovation and creativity. There is strict resistance against modernization and admission of new ideas and new technologies meant to revolutionize the production process. 2- Economic problems: Entrepreneurs need financial help and cooperation to establish or develop business in various areas. Amateur entrepreneurs are unable to meet the heavy expenditures of engaging experts and advisors to alleviate their problems. Therefore, the government should assure them that they will enjoy the required facilities and services. 3- Legal problems: There is no comprehensive definition of entrepreneurship in Iran’s laws, rules and regulations, otherwise entrepreneurs would face lesser problems in their entrepreneurial activities. In the presence of law and rules and regulations for establishment and development of innovative activities, entrepreneurs will face lesser problems in establishment and development of their businesses. Legal Obstacles in the Way of Promotion of entrepreneurship in Small Enterprises
Obtaining License, Bottlenecks and Obstacles Any entrepreneurial idea needs legal grounds and facilities for realization. The first step for starting any industrial business in Iran is getting license or certificate from the Ministry of Mines and Industries. The following are the bottlenecks and obstacles to receiving licenses for industrial activities in Iran. Lengthy Procedure for Receiving Certificates for Entrepreneurs and Small Enterprises Capital is the chief component of any entrepreneurial or productive activity, lack of which either stops any industrial activity or makes its establishment very difficult and almost impossible. For a new industrial activity provision of capital is possible through two ways: people and banks. Entrepreneurs and managers of small enterprises are among the people lacking required capital for establishment or development of their industrial activities. Therefore, they have no way but to place their application before the finance and credit associations or banks. Due to absence of non-governmental finance and credit associations, state banks are SEPTEMBER the only sources of provision of capital for the entrepreneurs that act in accordance with the pertinent rules and regulations, and monetary policies. Exports and Imports Rules, Obstacles to Entrepreneurs and Small Enterprises Managers of small enterprises and entrepreneurs depend on exports and imports with respect to the type and scope of their activity. This is because they need importing raw materials, machineries, technology and the like to establish and develop their businesses and, on the other hand, they need to export their products and services to world markets. According to Article 44 of the Constitution foreign trade is a monopoly of the government. Therefore, it is the government that enacts and presents annual export and import laws. Taxation and Obstacles to Small Enterprises Paying taxes is one of the legal responsibilities that any manager of small enterprises and entrepreneurs must fulfill when establishing or developing their business. Therefore, entrepreneurs and owners of small enterprises should pay due attention to paying taxes when starting or developing their business.
Labor Laws and Pertaining
Obstacles Labor force or manpower is one of the major factors in each manufacturing procedure. The expenditures and responsibilities resulting from labor force play an important role in the decisions of the entrepreneurs and managers of small enterprises in the establishment and development of their industrial activities. Labor law determines the commitments and responsibilities of entrepreneurs and managers of manufacturing and service enterprises in dealing with the laborers. The labor law in Iran protects the rights of the laborers to guarantee their right to work as one of the most important legal achievements of human civilization during the past two centuries. As a matter of fact, labor law is not responsible for employment but exerts its positive or negative influence on employment. If labor law provides for a reasonable relationship between the employer and employee, it will encourage managers of economic enterprises in their employment policies and creation of job opportunities, otherwise if the labor law makes employment very costly for the employer, it will serve as an obstacle to the establishment or development of economic enterprises by entrepreneurs and managers.
Analysis Research and studies related to Iran’s economy indicate that rules and regulations enacted by the government have not only failed to prepare the grounds for entrepreneurial and manufacturing activities, but also they have served as obstacles to the growth of entrepreneurship in small industries.
Obstacles to Entrepreneurship 1- Social security act is meant to guarantee the liveli
hood and safety of laborers and create hope in the future in them. In Iran, social security has brought about problems for the entrepreneurs. The most important problems resulting from Social Security Act in Iran are mentioned below: high insurance premiums, various offences, method of collection of premiums, and method of auditing and monitoring economic enterprises. 2- The most important insurance obstacles in the way of promotion of entrepreneurship are: payment of taxes by the enterprises since the establishment; diversity and volume of collectable taxes; problems related to the preparation of tax documents and method of collecting taxes and paying surtaxes. 3- The law of aggregate taxes is equally objected by the entrepreneurs and employers. The subject is open for discussion on the desk at legislative bodies and entrepreneurs and employers request three percent exemption from surtax. 4- Other obstacles include Islamic councils laws, exports and imports as well as monetary and banking rules and regulations, each of which have proven to be obstacles to entrepreneurship.
Descriptive Analysis Analysis of the data has been carried out by statistical software such as SPSS 19. The results are presented in brief in the following tables.
Review of General Information Overall, the shares of the most important obstacles to entrepreneurship can be summarized as follows: unchangeable and inflexible structure inside the company accounts for 21.7 percent, lack of specialized manpower accounts for 27.5 percent, legal factors or standards accounts for 20.8 percent, lack of interest of customers in new products and services accounts for 15 percent, and absence of managerial approach to entrepreneurship accounts for 15 percent.
Results: 1- The degree of supports rendered to the entrepreneurs by the senior managers varies from very high (only 13.3 percent) to very low (26.7 percent). 2- The shares of impact of the following factors on entrepreneurship of the individuals are: knowledge (22.5 percent), talent (23.3 percent), concentration on subject matter (18.3 percent), financial affordability (20 percent), highly required resources (15.8 percent). 3- The shares of external factors are: 10.8 percent (elementary and intermediate education) and 25.8 percent (academic education), 25 percent (communications infrastructures), 19.2 percent financial services, and 19.2 percent access to the market. 4- With respect to the prioritization of obstacles to entrepreneurship in industries, lack of supports by the government stands first in the order of most pressing problem SEPTEMBER 2013 | No. whose share is 3.66 percent. Other obstacles in order are: no access to entrepreneurial facilities (3.63 percent), availability of sufficient markets for existing products (3.58 percent), lack of attention to innovation and entrepreneurship (3.44 percent), lack of access to financial resources (3.38 percent), lack of access to consultative services on innovation and entrepreneurship (3.31 percent).
Findings Entrepreneurship is not a trait found in every human being. An individual with new ideas and thoughts and interested in creativity must make use of his/her innovations for the establishment and development of his/her business. However, an anti-investment and anti-capital culture prevails in Iran. Although banks and financial institutions offer loans to entrepreneurs, these supports are not sufficient for the establishment or development of enterprises. One way for improvement of entrepreneurship is modification of the existing government economic policies and promotion of the culture of entrepreneurship. Some organizations whose functions are to support entrepreneurship are about to be established in Iran. Similarly technology parks and entrepreneurship centers along with financial funds are being created to support the entrepreneurs. Despite all these measures, supports rendered to entrepreneurship are not enough. More supportive measures are needed to transform ideas to action. Along these activities, some other measures are needed to give intellectual support to entrepreneurs, which include supports from the libraries, Internet providers, universities, etc. In the end, laws should be enacted to pave the way for entrepreneurship and support entrepreneurs. Freedom and full competition in business allows people to freely plan for realization of their ideas and blossoming of talents. Majority of entrepreneurs start their works from zero level without any facilities. They work hard and take risks. When the preliminary requirements of entrepreneurship, i.e. supports and facilities, are available, the remaining factors such as management, creativity, discipline, and the like will take facilitated the success of entrepreneurs. In order to reduce obstacles in an organization, the institutional structure should be unofficial, standardized, non-centralized, and professional. The organization should possess a reward system and give the required impetus for creativity and innovation to the people.
Suggestions The following suggestions may help boost entrepreneurship in Iran: 1- Rendering financial support to innovation in small and medium enterprises. 2- Establishing innovation consulting services. 3- Paving the way for publicizing new businesses (such as free of charge advertising). 4- Establishing industrial companies of small and medium enterprises. According to the existing literature, there is a dire need on macro level to make appropriate policies for promotion of entrepreneurship within the framework of industrial and technological development strategy. This policy-making should embrace financial and information supports to entrepreneurship, organization network creation, organizational training and culture, organizational reforms and removing legal obstacles, etc. The first step should be taken to promote awareness of the senior officials about the importance of entrepreneurship in the current competitive atmosphere in the world. Moreover, other promising measures would be determining a prospect for organizational entrepreneurship, setting organizational objectives and strategies, modifying organizational structure, anticipating for research and development, establishing working groups for following up the new ideas in the organizations, designing and implementation of appropriate reward system by creation of verified information systems, specially in the field of techniques of creativity. These are some prerequisites for preparing the grounds for establishment and development of entrepreneurship. Freedom and full competition in business allows people to freely plan for realization of their ideas and blossoming of talents. Majority of entrepreneurs start their works from zero level without any facilities. SEPTEMBER 2013 | No. 17 In general, the most important obstacles to entrepreneurship can be summarized as: 21.7 percent accounts for unchangeable and fixed structure inside the company, 27.5 percent accounts for lack of specialized manpower, 20.8 percent accounts for legal factors or standards, 15 percent accounts for no interest of customers to new products and services and 15 percent accounts for no managerial approach to entrepreneurship.
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