Census of Barriers to Entrepreneurship Development in Shiraz Industrial Park Using Paradigmatic Model in Grounded Theory
Subject Areas : Iranian Sociological Review
Mohammad Mehdi Poursoltani
1
,
Ali Baghaeisarabi
2
,
Mehrdad Navabakhsh
3
1 -
2 - Assistant Professor of Sociology, Department of Sociology, Faculty of Social Science, Central Tehran Branch, Islamic Azad University, Tehran, Iran
3 - Professor of Sociology, Department of Sociology, Faculty of Humanities, Science and Research Branch, Islamic Azad University, Tehran, Iran
Keywords: Grounded Theory, Industrial Park, Shiraz City, Entrepreneurship Development, Development Barriers.,
Abstract :
Abstract:
Based on the sociological approach in the present study and considering the time dimensions (study between 2011- 2023, simultaneously with the implementation of the fifth and sixth national development plans) and the spatial dimension (the large industrial town of Shiraz), the analysis of the problem of obstacles to the development of entrepreneurship in Iranian industrial towns should be explained in relation to the context of transformation and the functioning of social and institutional structures. Previous empirical studies and the findings of this research show that economic development and entrepreneurship development have a two-way and inseparable link, and basically, sustainable economic growth is not possible except by improving the level of entrepreneurship and removing obstacles to it in the production and industrial fields. On this basis, the present study, with a qualitative approach and based on grounded theory, first investigated the barriers to entrepreneurial development and the continuity of industrial enterprises' activities. After determining the research population (entrepreneurs, town managers, and representatives of intermediary institutions), the data collection process continued through semi-structured interviews until theoretical saturation was achieved. In this study, data analysis was conducted through the paradigmatic model of grounded theory based on coding stages (open, axial, and selective), during which 21 key statistical barriers were identified, as well as causal and contextual conditions, intervening factors, strategies, and various consequences. Accordingly, the sociological analysis of this research emphasizes the necessity of paying attention to the value, normative, legal, and executive layers in designing entrepreneurship development strategies.
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Iranian Sociological Review (ISR)
Vol. 15, No. 2, 2025
Print ISSN: 2228-7221
Census of Barriers to Entrepreneurship Development in Shiraz Industrial Park Using Paradigmatic Model in Grounded Theory
Mohammad Mehdi Poursoltani1; Ali Baghaei Sarabi2; Mehrdad Navabakhsh3
1. Ph.D. Student in Sociology, Department of Sociology, Faculty of Humanities, Science and Research Branch, Islamic Azad University, Tehran, Iran
2. Assistant Professor of Sociology, Department of Sociology, Faculty of Social Science, Central Tehran Branch, Islamic Azad University, Tehran, Iran
3. Professor of Sociology, Department of Sociology, Faculty of Humanities, Science and Research Branch, Islamic Azad University, Tehran, Iran
Received 28 April 2025 | Accepted 21 June 2025 |
| |
Abstract: Based on the sociological approach in the present study and considering the time dimensions (study between 2011- 2023, simultaneously with the implementation of the fifth and sixth national development plans) and the spatial dimension (the large industrial town of Shiraz), the analysis of the problem of obstacles to the development of entrepreneurship in Iranian industrial towns should be explained in relation to the context of transformation and the functioning of social and institutional structures. Previous empirical studies and the findings of this research show that economic development and entrepreneurship development have a two-way and inseparable link, and basically, sustainable economic growth is not possible except by improving the level of entrepreneurship and removing obstacles to it in the production and industrial fields. On this basis, the present study, with a qualitative approach and based on grounded theory, first investigated the barriers to entrepreneurial development and the continuity of industrial enterprises' activities. After determining the research population (entrepreneurs, town managers, and representatives of intermediary institutions), the data collection process continued through semi-structured interviews until theoretical saturation was achieved. In this study, data analysis was conducted through the paradigmatic model of grounded theory based on coding stages (open, axial, and selective), during which 21 key statistical barriers were identified, as well as causal and contextual conditions, intervening factors, strategies, and various consequences. Accordingly, the sociological analysis of this research emphasizes the necessity of paying attention to the value, normative, legal, and executive layers in designing entrepreneurship development strategies. | |
Keywords: Grounded Theory, Industrial Park, Shiraz City, Entrepreneurship Development, Development Barriers. | |
Introduction
In order to analyze the research topic and find the main problem, as well as to identify the main information and pillars of the research, to find the unknowns or, in other words, to find research gaps in the relevant literature, the research problem can be explained at three levels: theoretical, empirical, and methodological. But to explain the problem, since our main issue revolves around the development of entrepreneurship, we must briefly describe the development of entrepreneurship. So, first, we will become familiar with the history and current status of entrepreneurship development, and on the other hand, the relationship between economic development and entrepreneurship development. To state the issue at an empirical level, it can be noted that, according to a review of relevant domestic and foreign research, it can be seen that in industrial towns, theoretically, a number of accelerating factors and a series of different systems have created obstacles and deterrents for the development of entrepreneurship. Considering the above, it can be concluded that the relevant studies and findings of researchers in the field of entrepreneurship still do not provide an adequate answer to the question of what social and cultural barriers are associated with the development of entrepreneurship in industrial towns from a sociological perspective, and in fact, no work has been done in this field from an empirical perspective. In the author's opinion, at a theoretical level, the main point is how to analyze the obstacles to entrepreneurial development from a sociological perspective. By posing this fundamental question, a need is felt for research that can analyze the obstacles or inhibitors to entrepreneurial development in industrial estates from various aspects. The study of theoretical texts and backgrounds shows to some extent what are the barriers to the development of entrepreneurship from the perspective of sociological theories. The main variable that needs to be explained in this section is the development of entrepreneurship. In sociology, when we look at this area, we see that we are faced with barriers to the development of entrepreneurship. A study of the background of related research and sociological theories in the field of entrepreneurship development showed that specialized research using a mixed method in the study of obstacles to entrepreneurship development has been conducted very rarely and limitedly. Therefore, the author seeks to answer the main research question, which is to study obstacles to entrepreneurship development from the perspective of modern institutionalism using a qualitative research method. Therefore, the objectives of the research are: A: To identify obstacles to entrepreneurial development through a grounded theory theoretical model, B: To analyze obstacles to entrepreneurial development according to Williamson's four-level model. On the other hand, the importance of the research and the theoretical aspect: It consists of three axes: The first axis: To expand and deepen the theoretical framework of modern institutionalism in the context of industrial entrepreneurship, The second axis: Identifying structural barriers and producing an intermediate theory, and the third axis: Linking the theory with the industrial development strategy of Fars Province and the necessity of an entrepreneurial economy. Necessity of research and practical aspect: In line with the necessity of achieving an industrial development strategy in Fars Province and the decisive impact of the entrepreneurial economy on the prosperity of the region, the practical aspects of this research can be listed in the following three axes: First axis: optimizing support policies and procedures, Second axis: strengthening the institutional structure and infrastructural capacity building, Third axis: developing financial and educational tools and monitoring systems.
Research Background
Ahmadi et al. (2024) in a study titled “Analysis of Obstacles to the Development of Rural Women’s Entrepreneurship (Case Study: Yasuj Tourist Villages)” concluded that in Iranian society, women have played an important and expanding role in the field of business, but there have always been a number of obstacles to women’s activities, especially in rural communities in Iran. Therefore, this study sought to identify obstacles to the development of rural women's entrepreneurship in Yasuj's tourist villages. Research Methodology: The present study is based on the type of research, applied, and the research method is descriptive and analytical. Library and field methods, interviews and questionnaires were used to collect information and data. The statistical population of this study is women in Yasuj's tourist villages (central part).
Rasouli et al. (2024), in a study titled “Investigating the Barriers to Entrepreneurship Development in Universities (Institutions) in Western Mazandaran Province,” found that in the present era, management of organizations depends on the external and internal environmental conditions of universities, and environmental changes and developments must be taken into account. The implication of these rapid changes and developments is that universities can no longer achieve their goals and fulfill their mission by relying on previous methods. Rapid changes, increasing complexity, increasing competition, etc. have made the life of universities increasingly at risk and finding a solution has become the intellectual concern of university administrators. Khosravipour and Shoaibi (2024), in a study titled Development of Agricultural Entrepreneurship (Obstacles and Solutions), found that utilizing the potential of the agricultural sector is one of the important pillars of the national economy, not only in Iran, but also in the economies of many developing countries. Many development experts believe that the backbone and driver of rural development is agricultural development, and one of the most important strategies for sustainable rural development is the growth and development of entrepreneurship in the agricultural sector. In fact, entrepreneurship development is the only strategy available to achieve agricultural development that is less costly than other strategies and more suitable for rural environments. Entrepreneurship creates productive jobs and reduces unemployment, improves productivity, develops technology and innovation, and ultimately increases income and improves the quality of people's lives. Hosseini et al. (2023). In a study titled Entrepreneurs' Decision Making in Industry Selection: The Role of Intuition, Emotion, and Logic, which aims to ask what elements entrepreneurs pay attention to when entering a specific industry, an important question in the field of entrepreneurship. On the other hand, people's decision-making style follows three patterns: logical, emotional, and intuitive. This research was conducted to answer the question: What factors do entrepreneurs with logical, emotional, and intuitive styles consider when entering an industry? The results showed what factors do entrepreneurs with logical, emotional, and intuitive styles consider when choosing an industry. Qiyasifard et al. (2023) achieved important results in a study titled “Analysis of barriers to entrepreneurship development in deprived areas using the Delphi method and the analytical network process,” which aimed to analyze barriers to entrepreneurship development in deprived areas of Chaharmahal-e-Bakhtiari province using the Delphi method and the analytical network process (ANP).
They reached important results. In this applied research, a descriptive-survey method was used to collect and analyze data. The research findings indicate the important role of officials and policymakers in removing these barriers to entrepreneurship through policymaking and planning to promote an entrepreneurial culture, develop entrepreneurial initiatives, and review banking, insurance, tax, customs, labor and trade laws and regulations, etc., according to the requirements of the time. Malek Mohammadi et al. (2023). In a study titled Designing an Integrated Model of Innovative Business Failure Factors and Providing Entrepreneurial Strategies to Avoid Failure, which aimed to integrate existing knowledge in the field of innovative business failure factors and entrepreneurial strategies to avoid them and to form coherent interpretive results to reduce the failure rate of innovators. And the method of this research was developmental and applied in terms of purpose and had a multiple qualitative approach. Conclusion: The achievements of integrated interpretations were presented, the most emphasis is on the flexibility and rotation strategy to avoid the failure factor of bad organization, the synergistic team strategy for the team/human problem, and the pure authentic value strategy for the product problem, respectively, on which inferential suggestions were presented. Nazemi and Azarbaijani (2023), a study titled Monitoring the Real Sector of the Iranian Economy, Industry and Mining Sector in Ordibehesht, 2023, The production and sales index of listed industrial companies increased by 10 and 10.7 percent, respectively, compared to the same month last year, and by 21.8 and 44.5 percent compared to the previous month, indicating an increase in industrial sector activities after the long company holidays in Farvardin.
Theoretical Framework
This research seeks to identify the barriers to the development of entrepreneurship in the Shiraz Industrial Park, and its theoretical basis is grounded theory and then explain sociological perspective with Emphasizing Oliver Williamson's four-level analytical model, an attempt is made to analyze the limitations in the entrepreneurial space of industrial parks, not in a one-dimensional manner, but within the framework of institutional and cultural complexities. In fact, in this research, the theoretical basis for analyzing the barriers to entrepreneurship development in industrial towns is the school of new institutionalism. Oliver Williamson's four-level analytical approach, as an efficient framework, allows us to examine the barriers not in a one-dimensional manner, but in the layers of operation, public choice, legal structure, and deeper institutional order. This framework enables the audience to identify weaknesses at the level of everyday contracts, policies, and macro laws, as well as to explore and comprehensively analyze the cultural and religious roots at the threshold of the entrepreneurial process. The central argument of this study is based on the belief that barriers to entrepreneurship in industrial estates are multidimensional phenomena that are affected by micro (operational), meso (collective choice), macro (legal), and supranational (cultural institutional) levels. Examining these barriers with a comprehensive approach allows for the design of comprehensive strategies. In other words, the main argument is that the barriers to entrepreneurship in industrial estates are intertwined and complex and should not be limited to financial or managerial issues. Williamson's four-level model allows us to analyze challenges such as difficulties in obtaining manufacturing licenses and purchasing raw materials (operational level), incoherence of government agencies and weak support packages (public choice level), shortcomings in intellectual property law and environmental regulations (legal level), and social norms that discourage risk-taking (institutional level) in a separate but related way. In fact, the institutionalist school, from a sociological perspective, is the product of the development and evolution of organizational theories that focus on the mutual relations between organizations and society. Institutions in this school are not simply formal structures; rather, they are broad (social rules) that establish norms through socialization processes and thereby shape certain behavioral patterns in individuals. Accordingly, studying entrepreneurship as a collective act requires examining the links between institutions and social actors. The study of barriers to entrepreneurship in the Shiraz Industrial Park serves as a case study in which the originality of the analysis emphasizes the exploration of institutional layers intertwined with market logic. Focusing on this industrial park allows for a comparative analysis of intra-organizational and inter-sectoral barriers. A review of domestic and foreign literature shows that most studies have focused on the technical-managerial and economic aspects of entrepreneurship, while modern institutionalism emphasizes that the link between formal structures (laws and regulations) and informal structures (norms and organizational culture) determines the level of risk-taking and innovation. In its early days, modern institutionalism had a political-economic approach, but in its evolution, it turned to socio-economic analyses in which institutions play a role as intermediaries between the state, the market, and civil society.
This phase change paved the way for studies such as this one. Explaining the role of institutions in instilling behavioral norms in individuals is one of the strengths of the institutionalist school. According to this view, individuals entering the entrepreneurial space face not only economic issues, but also social acceptance mechanisms, social credit networks, and cultural norms. Lack of trust between entrepreneurs and intermediary institutions or a conservative public attitude towards innovation hinders the formation of formal and informal support mechanisms. A review of domestic and foreign literature on entrepreneurship development and its obstacles shows that many works have focused on economic and managerial aspects, but fewer have addressed institutional-social dimensions. However, modern institutionalism believes that the link between economic development and the socio-cultural context is inseparable. Since its inception, this school has shifted its focus from broad political studies to in-depth socio-economic analyses that enable a more accurate understanding of entrepreneurial dynamics. A systematic review of domestic and international literature in the field of entrepreneurship development and its obstacles reveals that most research in this field is confined to the framework of economic and managerial analyses and has paid less attention to structures, norms, and institutional-social relations. This one-dimensional tendency has narrowed the field for ignoring the role of institutions in shaping entrepreneurs' motivations, the continuity of cooperation networks, and social credibility, and has left unanswered challenges such as lack of institutional support, normative conflict between the individual and the organization, and cultural blockage in industrial towns. On the other hand, although foreign studies have addressed some institutional requirements of entrepreneurship, they often do not rely on rich theoretical foundations and do not include comparative scales or comprehensive multi-level analysis models.
The results of previous research show that in addition to the lack of an institutional-social perspective, both the theoretical and practical dimensions of research in this area require rethinking and development: Theoretically, it is necessary to accurately redefine the fundamental concepts of modern institutionalism, Williamson's four-level model, and cultural and symbolic categories in developing analytical frameworks for entrepreneurship; And from a practical perspective, by designing in-depth field studies based on qualitative data, the correlation between formal and informal rules should be revealed and institutionalized policy solutions should be presented to expand distributive justice and reduce obstacles to entrepreneurship development. Therefore, it can be stated that modern institutionalism, using Williamson's four-level model, provides a comprehensive framework for identifying and removing barriers to entrepreneurship in industrial estates. The results of this approach can pave the way for policymakers and supporting institutions to formulate development-oriented, comprehensive, and sustainable strategies, considering institutional and cultural layers. Finally, the philosophical and methodological principles of the institutionalist school of thought indicate that the economy should be studied as a coherent and organized structure; a structure in which conflicting interests and group confrontation are natural and conflicts can be resolved through participation and cooperation. Its inductive approach, starting from micro-observations and expanding to general conclusions, clarifies the overlapping levels of operational rules, public choice, and legislation, and provides the basis for formulating an institutional strategy for entrepreneurship development in Fars Province.
Research Method
Here, a detailed description of the process is given to present and explain the steps and how to implement the qualitative method, which is based on the grounded theory method. In the qualitative part of the research, it is important to identify the target population and determine the type of sampling. In the present study, the target population in the qualitative section is the research population, which consists of entrepreneurs, town managers, and representatives of intermediary institutions (chambers of commerce, unions) in the Shiraz Industrial Town. The type of sampling here, using the grounded theory method, is purposeful sampling and, in a way, theoretical sampling until saturation is reached in terms of the views and theoretical information of the interviewees. The grounded theory method is indicative of presenting a theoretical model based on the systematization of findings and analysis of textual research data. It uses a kind of induction model for the analysis process and, in fact, reaches detailed results from general results. In this section, in the first step, the researcher first sets up semi-structured interview questions and in the next step, through the types of coding that are common in grounded theory, he or she conducts a textual analysis of the information, findings, and data obtained from the interview with the target population. In general, the following practical steps and research activities were carried out to complete the qualitative part of the present study, which include identifying the research population and purposeful and theoretical sampling of them in order to conduct semi-structured and in-depth interviews, and in the next step, writing down the interviews to carry out various stages of open coding, axial coding, and selective coding.
In other words, textual analysis of information, findings, and data from interviews and selection of concepts, subcategories, and main categories to arrive at how concepts and phenomena are related and to present a theoretical model of analyzing qualitative research findings. In this qualitative study, the target population was selected from entrepreneurs and managing directors of industrial units located in the Shiraz Industrial Park through purposive and theoretical sampling. Interviews were conducted with 21 of the sampled individuals, and open coding, axial coding, and selective coding were used for textual analysis. The researcher found that theoretical saturation was achieved in terms of repetition of information and responses of the interview participants and the expression of similar and common opinions and views in the interview process and initial analysis, because the initial textual analysis of the interviews did not provide any new scientific points or concepts. So, in short, it can be said that the first part of the present research method is dedicated to the qualitative stage and the use of interviews. Therefore, in the first step, after purposeful and theoretical sampling, conducting interviews with individuals and writing them down, and extracting important sentences and statements, all of which have been separated and presented in the form of tables in the appendix. In the second step, the researcher read the interview text repeatedly, and in the third step, the important statements and sentences related to the research topic and objectives were coded. In the fourth step, after multiple reviews of the resulting categories and concepts, repeated revisions by the researcher, and discussions with interviewees and experts in the field of the current research topic and the grounded theory, validity and reliability were achieved.
Research Findings
Analysis Model Used in the Research (Grounded Theory)
In this section, we will briefly explain the paradigmatic model in grounded theory. The paradigmatic model is an important tool in qualitative research methodology, especially in grounded theory. It helps to organize and examine phenomena in a systematic and meaningful way. Next, we will explain the main elements of a paradigmatic model and the steps involved in its design.
Elements of the Paradigm Model: The Paradigm Model is Divided into the Following five Elements:
1- (Causal Condition): Causal conditions are factors or prerequisites that influence the phenomenon in question. These conditions can include factors such as time, place, culture, or other social and political factors.
2- (Contextual Condition): Contextual conditions are the environmental and social conditions that influence the phenomenon. These conditions can include texts, events, or other occurrences that influence the phenomenon.
3- (Intervening Condition): Intervening conditions are processes and activities that affect the phenomenon. These conditions can include human factors, events, or other occurrences that affect the phenomenon.
4- (Interaction Strategy): Strategies are the methods used to achieve desired outcomes. These strategies can include different methods used to achieve the desired results.
5- (Consequences): Consequences are the final results of applying strategies in specific time and place conditions. These consequences can include positive or negative consequences.
6- (Phenomenon): At the center of the paradigmatic model is the central phenomenon or focal category around which activities are formed. It shows the flow of processes and activities that have occurred in the context of this research. In this research, obstacles to entrepreneurship development are considered as the central category or central phenomenon.
Figure (1): Schematic Diagram of the Theoretical Model
Determination of Interview Questions
The first step in any qualitative research is to define research questions that clearly define the research topic. These questions should be designed to be open-ended and flexible, allowing for the collection of diverse and in-depth information during the interviews. In this regard, it is necessary to focus on the barriers to the development of entrepreneurship, as well as to examine the causal, contextual, and intervening conditions. The research questions seek to identify factors that lead to restrictions or facilitation in the entrepreneurial process. Causal conditions refer to factors that directly affect the emergence of barriers; While contextual conditions refer to factors that shape the context and environment and can influence entrepreneurship, intervening conditions also include external elements and forces that may have a negative impact on the entrepreneurial process.
Table (1): Research Questions in the Qualitative Section
Research questions | row |
First question: From your perspective, how is entrepreneurship development expressed? Please describe its dimensions. | 1 |
Question 2: Based on your personal experiences, what are the obstacles to entrepreneurship development? Please provide a comprehensive explanation. | 2 |
Question 3: Based on your personal experiences, what is the most important obstacle to the development of entrepreneurship from your perspective, and what are the causal conditions for its emergence and formation? | 3 |
Question 4: Considering the most important obstacle to entrepreneurship development, from your perspective, what are the underlying conditions for the emergence and formation of the obstacle? | 4 |
Question 5: Considering the most important obstacle to entrepreneurship development, what are the intervening factors in creating this obstacle, in your opinion? | 5 |
Question 6: Regarding the most important obstacle to entrepreneurship development from your perspective, please describe the strategies for dealing with it and describe your personal experiences. | 6 |
Question 7: What was the outcome of the strategy you chose to address the main obstacle to entrepreneurship development? Please provide a full explanation. | 7 |
Research Findings in the Qualitative Section Based on the Grounded Theory Paradigm Model
Paradigmatic model design is one of the most important strategies in qualitative research methods, especially grounded theory. In grounded theory, data integration is of great importance. In open coding, the analyst creates categories and their characteristics. And then it tries to determine how the categories change along the specified dimensions. In the focused coding, the categories are systematically refined and linked to subcategories. The third stage of coding is selective coding and the presentation of the paradigmatic model of the research.
An Example of Coding in an Interview with a Member of the Research Population
Question: Based on your personal experiences, what are the obstacles to entrepreneurship development? Please provide a comprehensive explanation.
· Code 10-2-1 Based on my personal experiences regarding obstacles to entrepreneurial development, capitalists mainly tend to concentrate economic resources in their own hands. This concentration means that resources such as capital, land, technology, and labor are under the narrow control of a few who often use them to maintain the status quo and expand their dominance. This situation makes it difficult for smaller individuals and groups, including new entrepreneurs, to access the resources they need to start or expand their businesses.
· Code 10-2-2 From what I have observed about entrepreneurial challenges, capitalists can use their lobbying and influence over policies and laws to create conditions in which small businesses and new entrepreneurs cannot compete with them. This includes receiving subsidies, tax breaks, or even receiving government contracts, which ultimately leads to a monopoly in the market.
· Code 10-2-3 From my experience in the field of obstacles facing entrepreneurship, one of the biggest challenges facing entrepreneurs is the lack of access to financial resources to start or expand a business. Large capitalists and financial institutions tend to allocate their loans and investments to businesses with lower risk and high potential for return on investment. This often benefits large, established companies, as these companies have the power to return on capital and are able to manage higher risks.
· Code 10-2-4 Based on what I have experienced in the field of entrepreneurial obstacles, capitalists, especially those belonging to complex and monopolistic financial systems, tend to invest in projects that have high financial returns in the short term and have lower risk. These types of investments are usually in areas that involve less innovation and risk, such as older industries and markets that are already established.
· Code 10-2-5 Based on what I have encountered regarding obstacles to entrepreneurship, large capitalists are trying to take over the market and eliminate competition. In this situation, monopoly is a common phenomenon in which one or a few large companies control the entire market. These monopolies not only harm consumers, but also pose a major obstacle for new entrepreneurs, as entering markets dominated by a few large companies requires significant investment and costs.
· Code 10-2-6 From my empirical perspective on the challenges of entrepreneurship development, capitalists are seen in some societies as models of success and power. This situation can have negative effects on the morale of entrepreneurs. In cultures where capitalism is more dominant, young people and job seekers may seek employment in large, established companies rather than trying to start their own businesses. This can be a barrier to fostering entrepreneurial thinking and innovation in society.
· Code 10-2-7 Based on my personal experiences regarding obstacles to entrepreneurial development, globalization and the expansion of multinational corporations have also added to the dominance of capitalists. In many industries, large global companies, using their economic advantages and abundant resources, can dominate local markets and even influence domestic markets. In these circumstances, local and small entrepreneurs are unable to compete with these large companies.
· Code 10-2-8 According to my personal observations and experiences in the field of entrepreneurial barriers in markets dominated by large, established companies, new entrepreneurs naturally face difficulties in entering. These companies usually have the advantages of large scale, experience, financial resources, and strong branding. These advantages cause the costs of entering the market to be very high for new companies.
· Code 10-2-9 According to my personal observations and experiences in the field of entrepreneurial barriers in saturated markets, there is no room for new businesses to grow and develop. These types of markets are such that consumer demand has reached a saturation point and there is little growth in demand. In such markets, competition between existing businesses is fierce, with each company trying to gain a larger share of the market.
· Code 10-2-10 From what I have seen of the challenges of entrepreneurship, in a market where competition is high and big brands have already dominated, advertising and branding are of great importance. Big companies are able to easily spend their financial resources on extensive advertising campaigns and building reputable brands. This can cause new entrepreneurs to fail to attract enough attention from customers, even if they have good products or services.
· Code 10-2-11 From my experience in the field of obstacles to entrepreneurship, another reason why market density acts as an obstacle to entrepreneurial development is the limited investment resources. In dense markets, it becomes difficult for start-up businesses to attract investors, as these resources are usually directed towards businesses that have already established their market or are already profitable.
· Code 10-2-12 As I have touched on in Challenging Entrepreneurial Development, in dense markets, differentiation between different products and services is often reduced. Many businesses are similar to each other, and competition is based on similar prices and features. In such situations, new entrepreneurs must create special distinctions in their products or services to attract customers and create added value.
· Code 10-2-13 Based on what I have encountered regarding entrepreneurial barriers, in dense markets, competition usually causes fixed and operating costs for businesses to increase. For example, to maintain their position in the market, businesses have to pay more for customer retention, sourcing raw materials, and advertising.
· Code 10-2-14 Considering my experiences with barriers to entrepreneurial growth in some industries, competing in dense markets requires leveraging the latest technologies and innovations. This is challenging for start-ups, as the costs of research and development and investment in advanced technologies can be extremely high. Additionally, new technologies may require specific expertise and skills that are not available to all entrepreneurs.
· Code 10-2-15 Based on my own experience in the field of entrepreneurial obstacles, another problem that dense markets create is dependence on existing distribution channels. In large, saturated markets, distribution channels such as stores, online platforms, or distributors are usually dominated by large companies. This is challenging for new entrepreneurs who need to get their products to customers.
· Code 10-2-16 From my empirical perspective on the challenges of entrepreneurial development in many industries, raw materials are affected by global fluctuations. For example, the prices of oil, precious metals, grains, or other natural resources are affected by global factors such as supply and demand, the economic situation of major countries, political changes, and sanctions. These fluctuations can cause severe instability in the price of raw materials.
· Code 10-2-17 Considering my experiences with obstacles to entrepreneurial growth, many start-up businesses depend on specific suppliers who may change the price of raw materials due to global market changes or their own internal issues. When key suppliers are exposed to economic fluctuations and difficulties, this directly affects the pricing of raw materials and ultimately production costs.
· Code 10-2-18 Sometimes, global or local crises (such as natural disasters, wars, or pandemics) can disrupt the supply chain and cause shortages of raw materials. This can cause prices to rise, especially when suppliers are unable to meet market demand.
· Code 10-2-19 From my experience with barriers to entrepreneurship, inflation is one of the important domestic factors that can exacerbate volatility in commodity prices. When the inflation rate is high in a country, prices are generally rising, including the price of raw materials. Also, economic policies such as interest rate changes, changes in exchange rates, or government policies (such as import or export taxes) can have large impacts on raw material prices. To deal with these problems, entrepreneurs must constantly review prices and change their pricing strategies, which in many cases requires additional costs and more time. Also, increasing raw material prices means increasing production costs, which can lead to reduced profit margins or changes in product quality.
· Code 10-2-20 According to my personal observations and experiences in the field of entrepreneurial barriers in dense and competitive markets, entrepreneurs cannot easily increase their prices to compensate for the increase in raw material costs. In such circumstances, fluctuations in raw material prices can lead to a decrease in profit margins. Entrepreneurs must either cut costs (which often results in lower quality products) or raise prices, which can lead to lost customers and reduced demand. This is especially damaging for startups that are still gaining customers and building trust in the market. Decreasing profit margins can cause them to be unable to compete adequately in the market and ultimately exit the market.
· Code 10-2-21 According to what I have touched on in Challenging Entrepreneurship Development, for many countries, the raw materials needed for production are imported from abroad. Sanctions or changes in international trade policies can have a large negative impact on the price of raw materials. This can lead to rising prices or even shortages of raw materials domestically. For entrepreneurs who need to import raw materials, these fluctuations can complicate production planning and pricing. In addition, the possibility of reduced quality or changes in raw material supplies due to sanctions or trade changes can impose additional costs on the business.
· Code 10-2-22 Based on my personal experiences regarding obstacles to entrepreneurial development in some industries, the demand for raw materials rises and falls seasonally or due to changes in the consumer market. These changes cause raw material prices to increase sharply in some periods and decrease in others. Entrepreneurs who operate in seasonal industries or with fluctuating demand find it difficult to have accurate financial planning. These fluctuations in demand and price can create problems in inventory management, sourcing, and cost control.
· Code 10-2-23 From what I have observed about entrepreneurial challenges, climate change and the degradation of natural resources can also affect the price of raw materials. For example, reduced water resources, changes in cropping patterns, or shortages of mineral resources can lead to increased raw material prices. Entrepreneurs who are heavily dependent on specific raw materials are vulnerable to these types of changes. These types of fluctuations may have long-term and unforeseen impacts on costs and production strategies, causing serious problems for the development of start-ups.
Table (2): Coding Results (Interview Sample), Barriers to Entrepreneurship Development
row
| The text of the interview | Basic concepts | Subcategory | Focal category or central phenomenon | General category |
1 | Code 10-2-1 | 1- Concentration of wealth and power | 1- Capitalist domination | Continuous and unpredictable fluctuations in raw material prices.
| Obstacles to Entrepreneurship Development in Shiraz Industrial Park
|
2 | Code 10-2-2 | 2- Use of lobbying and political influence | |||
3 | Code 10-2-3 | 3- Lack of access to financial resources | |||
4 | Code 10-2-4 | 4-Investing in personal interests instead of innovation | |||
5 | Code 10-2-5 | 5-Lack of competition and monopoly | |||
6 | Code 10-2-6 | 6- Culture and psychology of domination | |||
7 | Code 10-2-7 | 7-The effects of globalization and market concentration | |||
8 | Code 10-2-8 | 8- The existence of large and established competitors | 2- Market density | ||
9 | Code 10-2-9 | 9- High rate of competition in saturated markets | |||
10 | Code 10-2-10 | 10- High advertising and branding costs | |||
11 | Code 10-2-11 | 11-Limited resources and investment | |||
12 | Code 10-2-12 | 12-Lack of differentiation in products and services | |||
13 | Code 10-2-13 | 13-Increase in fixed and operating costs | |||
14 | Code 10-2-14 | 14- Dependence on technology and complex innovations | |||
15 | Code 10-2-15 | 15- Dependence on existing distribution channels | |||
16 | Code 10-2-16 | 16- Fluctuations in global markets | 3- Continuous and unpredictable fluctuations in raw material prices. | ||
17 | Code 10-2-17 | 17- Dependence on specific suppliers | |||
18 | Code 10-2-18 | 18- Supply shortages and supply chain crises | |||
19 | Code 10-2-19 | 19- Inflation and economic policies | |||
20 | Code 10-2-20 | 20-Competition and decreasing profit margins | |||
21 | Code 10-2-21 | 21- The impact of sanctions and trade policies | |||
22 | Code 10-2-22 | 22- Demand growth and seasonal effects | |||
23 | Code 10-2-23 | 23-Long-term effects of climate change and natural resources |
Final Research Findings According to the Elements of the Paradigmatic Model in Grounded Theory
Table (3): Focal Category or Central Phenomenon (Barriers to Entrepreneurship Development)
row | Focal category or central phenomenon (obstacles to entrepreneurship development) | level of analysis |
1 | Problems in securing loans from financial and credit institutions | Institutional |
2 | Structural weakness of the capital market in supporting financing of production units and the urgent need to secure resources from the informal market at high rates. | Institutional |
3 | The existence of economic violations in government departments and organizations. | Social |
4 | The imposition of economic and trade restrictions by countries and international institutions on our country. | Institutional |
5 | High tariffs for mandatory insurance premiums for employees and workers. | Organizational |
6 | Failure of companies and government institutions to adhere to the payment schedule for their debts to contractors. | Organizational |
7 | Weakness of judicial institutions in responding to complaints and forcing parties to fulfill contractual obligations. | Institutional |
8 | Manufacturing substandard and counterfeit products and distributing them indiscriminately on the market. | Institutional |
9 | Instability of production and investment laws and regulations, which leads to challenges for business owners. | Institutional |
10 | Continuous and unpredictable fluctuations in raw material prices. | Social -Institutional |
11 | Setting abstract and unrealistic prices for manufactured products by the government and related institutions. | Institutional |
12 | Legal restrictions on hiring, retirement, and layoff practices that exist in companies. | Institutional |
13 | Checks from customers and colleagues that are returned due to non-payment and lack of bank account balance. | Institutional |
14 | A large number of legal holidays that affect economic and social activities. | Institutional |
15 | Distribution of foreign goods that have illegally entered the domestic market | Institutional |
16 | Reducing the cost of importing foreign goods and unfair competition with domestically manufactured products | Institutional |
17 | Tariff restrictions on the export of goods and the supply of raw materials from abroad | Institutional |
18 | People's tendency to buy imported products and a decrease in acceptance of domestically made goods | Social |
19 | Structural problems in the distribution system and their impact on consumer access to products | Organizational |
20 | Lack of investment and inefficiency in the country's transportation infrastructure | Institutional |
21 | Lack of capacity and inefficiency of the country's electricity infrastructure | Institutional- Organizational |
Table (4): Causal Conditions in Creating Obstacles to Entrepreneurship Development
Causal Condition | row |
Number One: Factors Related to Infrastructure and Facilities | 1 |
Number Two: Financing Factors | 2 |
Number Three: Factors Related to Knowledge and Skills | 3 |
Number Four: Regulatory Factors | 4 |
Number Five: Market-Related Factors | 5 |
Number Six: Cultural and Social Factors | 6 |
Number Seven: Factors Related to Industrial Park Management | 7 |
Table (5): Background Conditions in Creating Obstacles to Entrepreneurship Development
Contextual Condition | row |
Number one: Economic conditions | 1 |
Number two: Political and legal conditions | 2 |
Number three: Social and cultural conditions | 3 |
Number Four: Technology Requirements | 4 |
Number Five: Geographical and Environmental Conditions | 5 |
Table (6): Intervening Factors in Creating Obstacles to Entrepreneurship Development
Intervening Condition | row |
Number One: Government Support Policies and Programs | 1 |
Number two: Industrial Park management and leadership | 2 |
Number Three: Organizational Culture and social media | 3 |
Number Four: Market Conditions and Competition | 4 |
Number Five: Personal Characteristics of Entrepreneurs | 5 |
Table (7): Selected Strategies in Dealing with Obstacles to Entrepreneurship Development
Interaction Strategy | row |
Strategy One: Upgrading Infrastructure Networks | 1 |
Strategy Two: Develop and Optimize Support and Financing | 2 |
Strategy Three: Facilitate and Reform Regulatory Laws and Processes | 3 |
Fourth Strategy: Improving the Quality of Education and Empowering Human Resources | 4 |
Strategy Five: Developing and Facilitating Domestic and Foreign Marketing | 5 |
Strategy Six: Encouraging Innovation and Localizing Advanced Technology | 6 |
Seventh Strategy: Developing Living Standards and Social Welfare | 7 |
Strategy Eight: Supporting the creation and development of industrial and commercial clusters | 8 |
Strategy Nine: Respecting Environmental and Social Considerations in Development | 9 |
Strategy Ten: Establishing performance monitoring and evaluation systems | 10 |
Table (8): Consequences of Choosing a Strategy in Dealing with Obstacles to Entrepreneurial Development
Consequences | row |
Positive consequences | |
First consequence: Improvement of the situation and economic development | 1 |
Second consequence: Supporting innovative ideas | 2 |
Third consequence: Infrastructure improvement and development | 3 |
Fourth consequence: Creating equal opportunities and reducing inequality | 4 |
Fifth consequence: Improving organizational performance | 5 |
Negative consequences | |
First consequence: Implementation and operational obstacles | 1 |
Second consequence: Financial challenges and increased risk in investment | 2 |
Third consequence: Social consequences and reduced quality of life for people | 3 |
Fourth consequence: Environmental threats | 4 |
Fifth consequence: Sustainable development challenges | 5 |
Conclusion
In the present study, using the paradigmatic approach and model of grounded theory, obstacles to entrepreneurship development in the large industrial city of Shiraz were identified. According to the research findings, the expert analysis of obstacles to entrepreneurship development from the author's personal perspective shows that the main roots of the limitations, for example causal conditions, lie in bureaucratic structures, lack of transparency and ambiguity in protective laws, and difficulty in accessing formal financial resources, rather than being summarized in individual behaviors or technical problems. As causal conditions, these factors create an uncertain environment for entrepreneurial activities and severely weaken the incentive to invest and accept risk. On the other hand, contextual conditions, including deep cultural and social characteristics such as the dominance of a conservative and risk-averse culture, weak social capital, and the lack of successful local models, exacerbate the structure of these limitations; these contexts lead to weakening public trust, a decrease in the spirit of cooperation and teamwork, and a tendency towards informal relationships to advance matters.
In fact, the connection and synergy between these two sets of conditions creates a kind of institutional blockage, the removal of which requires structural changes, cultural interventions, and the design of appropriate policies in line with the social realities in the large industrial city of Shiraz. In this case, the author's personal suggestion, based on the research findings, is that without paying attention to the cultural and social contexts and focusing solely on administrative and economic reforms, it will be difficult to achieve sustainable entrepreneurship development in these regions. Also, regarding the intervening factors in creating obstacles to the development of entrepreneurship in the Shiraz Industrial Park, the research findings show that these factors often play a "modifying" or "exacerbating" role on the intensity and manner of impact of causal and contextual conditions and have a dynamic and uncertain nature. Changes in macroeconomic policies and regulations, managerial developments at the middle and top levels of executive agencies, economic shocks and external crises such as currency fluctuations or sanctions, as well as the strengthening or weakening of trade unions and civil society organizations, can accelerate the process of institutional reform or even deepen existing obstacles. The role of intervening factors in this often depends on the degree of dynamism and adaptability of the governance system and the ability to mobilize social and network support, especially in contexts where public opinion pressure, the presence of transformational managers, or the formation of entrepreneurial support networks have been strengthened. Therefore, it can be concluded based on the research findings that the success or failure of efforts to overcome obstacles to entrepreneurship development in the Shiraz Industrial Park is largely influenced by mediating variables and intervening factors. which may be outside the direct control of entrepreneurs or even local policymakers and, as a suggestion, makes the necessity of flexible policymaking and readiness to respond to environmental changes a structural requirement for developmental governance.
The important point is that the research findings showed that the selection of strategies in facing obstacles to entrepreneurial development in the Shiraz Industrial Park, based on the grounded theory model, is more than just a response to technical or financial problems, but a reflection of a deep understanding of the institutional links, cultural contexts, and structural requirements of the business environment in the Shiraz Industrial Park. Successful strategies should generally simultaneously address reforming inefficient laws and bureaucracy, improving technical and administrative infrastructure, strengthening transparency and organizational accountability, and enhancing the level of social capital, as experience shows that unilateral solutions, without considering social complexities and informal and networked connections, are not sufficiently sustainable and effective. In my opinion, based on the research findings, adopting educational and culture-building policies and utilizing support networks and information technology, provided they are aligned with local and contextual realities, can increase the motivation and capacity of entrepreneurs to overcome obstacles. Also, the formulation and implementation of strategies must be flexible and contingent, and have the ability to be revised in the face of changes in intervening factors; because the entrepreneurial space in the Shiraz Industrial Park is an arena of dynamic interaction of politics, structure, culture, and economy, and choosing balanced and multidimensional strategies will be a basic condition for overcoming the chronic crisis of obstacles to entrepreneurship and moving towards sustainable development.
Finally, it should be noted that the specialized consequences of selecting and implementing appropriate strategies in dealing with obstacles to entrepreneurial development in the Shiraz Industrial Park show that the effectiveness of strategies goes beyond solving superficial or temporary problems and can lead to deep dynamics and long-term institutional changes. If comprehensive, localized, and multi-level strategies are adopted and implemented (including reforming legal and administrative structures, improving technical infrastructure, expanding transparency and accountability, strengthening education and a culture of entrepreneurship, and relying on new technologies), It is expected that the bond between entrepreneurs, government institutions, and the private sector will be strengthened, the level of institutional trust and social capital will increase, and entrepreneurial behaviors will gain a more institutionalized and legitimate position in the economic space. As a result, the rate of establishment and survival of new enterprises increases, formal interactions improve, the scope for abuse and corruption decreases, and ultimately the industrial park becomes a dynamic and sustainable platform for job creation, innovation, and economic growth. In my personal opinion, the key point is that if strategies are merely formal or one-dimensional, they will not only not prevent structural improvement, but will also lead to institutional exhaustion, social distrust, and double frustration for entrepreneurs. As a result, the ultimate and lasting consequence of choosing the right strategies is to move beyond structural blockages to the highest level of entrepreneurial development and shape a sustainable, trust-based, and innovative ecosystem in the Shiraz Industrial City.
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[1] Email: mm.poursoltani@srbiau.ac.ir
[2] Email: a.baghaeisarabi@iauctb.ac.ir (Corresponding Author)
[3] Email: navabakhsh@srbiau.ac.ir
