Urban Economics and Planning

Urban Economics and Planning

Evaluation and Prioritization of Urban Entrepreneurship Development Components (Case Study: Isfahan Metropolis)

Document Type : Original Article

Authors
Jafar Saeedi 1
Mahdi Ataei 2
1 Ph.D in Geography and Urban Planning, Shahid Chamran University of Ahvaz, Ahvaz, Iran
2 Master’s student in Urban Planning, Noor Hedayat Institute of Higher Education, Shahrekord, Iran
10.22034/uep.2025.511499.1611
Abstract
Introduction 
The development and promotion of urban entrepreneurship, by creating favorable economic conditions such as employment and financial self-sufficiency for citizens, positively impacts urban society and culture. Conversely, a lack of its promotion leads to an increase in economic problems and social harms, including unemployment, poverty, and delinquency, which have detrimental social and cultural effects on citizens. Among the reasons for focusing on entrepreneurship development are its power in creating new businesses with high added value, fostering the growth of existing businesses, driving economic growth and social welfare, reducing unemployment rates, and ultimately increasing per capita production and establishing social justice. Therefore, to formulate effective strategies and policies, it is essential to identify the factors influencing entrepreneurship and analyze the interactions among them. Isfahan, one of Iran’s most significant metropolises, holds a special economic, historical, and cultural position. This city, possessing considerable potential in the industrial, tourism, and technology sectors, can transform into a major hub for entrepreneurship development in the country. Nevertheless, despite the existing capacities, entrepreneurship development in Isfahan faces numerous obstacles and challenges, the identification and removal of which are essential for achieving sustainable economic and social growth. In this regard, some of the major challenges in urban entrepreneurship development include: a shortage of adequate entrepreneurship infrastructure (both physical and digital), limited access to financial resources and investment, particularly for startups and nascent businesses, weaknesses in the entrepreneurship education and skills training system leading to a lack of human resource readiness for innovative activities, insufficient institutional support from government organizations and the private sector, macroeconomic challenges such as inflation, market fluctuations, and business instability, weaknesses in marketing and attracting foreign investment, citizens’ lack of inclination or awareness regarding entrepreneurial processes and the benefits of participation therein, and the absence of effective mechanisms for encouraging and developing sustainable urban businesses. These challenges not only impede the growth of entrepreneurship in the metropolis of Isfahan but also negatively impact job creation opportunities and the economic development of this region. Therefore, a scientific investigation of these obstacles and the provision of practical solutions for their amelioration can play a decisive role in strengthening Isfahan’s urban entrepreneurship ecosystem. In the pursuit of developing and deepening urban entrepreneurship, it is essential to focus on identifying and analyzing the status of key factors influencing its successful establishment. The advancement of urban entrepreneurship in Isfahan necessitates a comprehensive and multifaceted approach encompassing all economic, social, cultural, and institutional components. The present research aims to enhance entrepreneurship’s position within the urban economic structure of the metropolis of Isfahan by analyzing the status of its urban entrepreneurship development components and identifying existing entrepreneurial challenges and opportunities within the urban fabric. More specifically, the present research seeks to answer the following questions:
1. What is the status of urban entrepreneurship development components and indicators in the metropolis of Isfahan?
2. What are the most influential components and indicators of entrepreneurship development in the metropolis of Isfahan?
Materials and Methods
This research is applied in terms of its objective and descriptive-analytical in terms of its nature and method. The study’s statistical population comprised 45 experts, including university academics, specialists, and institutional-organizational managers, who were selected based on their sufficient knowledge and experience in the study’s objectives and scope. Purposive sampling ensured the participants possessed the necessary expertise and awareness in the research subject. SPSS software was used for data analysis, and the statistical tests employed were the t-test and the Friedman test. This research collected data through two methods: library research and field study. In the library section, theoretical foundations and research background were gathered by referring to credible sources and taking notes on relevant materials. In the field section, the necessary data were collected from the sample population through the design and distribution of a questionnaire. This combination of methods allowed access to comprehensive and accurate information and contributed to a better analysis of the research findings. In this section, the researcher-made questionnaire on urban entrepreneurship development, consisting of 45 questions and six components (good urban governance with four items, political and legal factors with three items, urban social factors with 23 items, urban economic factors with six items, urban environmental factors with six items, and urban cultural factors with three items), which was based on the review of theoretical foundations, research background, and expert opinions, was used and distributed among the sample size.
Findings
To evaluate the status of the research components and indicators, the results of the one-sample t-test showed that the significance level of all items was less than 0.05. Therefore, all items played a role in the urban entrepreneurship development in Isfahan and are important, differing only in their level of influence. Furthermore, findings indicated that regarding the Good Urban Governance component, the Efficient Urban Management indicator; regarding the Political and Legal Factors component, the Urban Oversight indicator; regarding the Urban Social Factors component, the indicators of Urban Innovation, Urban Capacity, Leading City, and Risk-Taking City; regarding the Urban Economic Factors component, the Urban Investment indicator; regarding the Urban Environmental Factors component, the Urban Quality Orientation indicator; and the Urban Cultural Factors component, the Urban Individual Factors, do not have a favorable status compared to other urban entrepreneurship indicators for the urban entrepreneurship development of the metropolis of Isfahan. A review of the overall status of the components also indicated that urban entrepreneurship development within the development structure of the metropolis of Isfahan is at a moderate level. This result suggests that although the necessary infrastructure and capacities for entrepreneurial growth exist in this region, there is still a significant distance to reach the desired national and international competitiveness level. Specifically, factors such as access to financial resources, government support policies, specialized training, and entrepreneurial networking require reinforcement and improvement. The results of the prioritization of urban entrepreneurship development components and indicators based on the Friedman test showed that the indicators “Urban Motivation, Urban Synergy, Urban Foresight, Urban Technology, Agile City, Urban Policy, Urban Growth and Yield, Urban Awareness, Urban Context, and Urban Marketing” are the most important factors in urban entrepreneurship development in the city of Isfahan. Furthermore, the final components ranking results indicated that Good Urban Governance is the priority for urban entrepreneurship development in the metropolis of Isfahan, followed by Economic, Social, Cultural, Political, Legal, and Environmental Factors.
Conclusion
As a dynamic and multidimensional process, urban entrepreneurship development plays a key role in achieving economic growth, social dynamism, and cultural advancement in cities. This study indicates that cities, by creating suitable institutional, financial, and social platforms, can act as catalysts for innovative activities and the launching of new businesses, thereby addressing complex challenges such as unemployment, social inequalities, and environmental changes. In this regard, the metropolitan structure of Isfahan indicates that achieving sustainable and comprehensive entrepreneurship development necessitates systematic coordination and interaction among various components. Within this context, efficient urban governance and management are recognized as the primary cornerstone of urban entrepreneurship development. By formulating smart policies, strengthening legal frameworks, and streamlining administrative processes, urban institutions can provide a safe and dynamic environment for business growth. In addition, attracting financial investments and private sector participation are considered other essential pillars of this process, as entrepreneurship development will face serious challenges without economic support and sustainable financial infrastructure. Furthermore, social empowerment through education, upgrading specialized skills, and leveraging the capacities of the local community adds depth and sustainability to urban entrepreneurship. Moreover, urban culture, especially in a rich historical context like Isfahan, can be a driving force for strengthening entrepreneurial identity and innovation. Finally, integrating these factors within an integrated policy model that systematically defines cooperation among governmental institutions, the private sector, and civil society can provide the groundwork for sustainable and comprehensive urban entrepreneurship development. Accordingly, the present study emphasizes that success in urban entrepreneurship development necessitates a comprehensive perspective in which all managerial, economic, social, and cultural dimensions interact. Only in this way can cities serve as dynamic hubs of entrepreneurship and play an effective role in achieving sustainable development.
Keywords
Isfahan Metropolis
Urban Development
Urban Entrepreneurship
Urban Innovation
Urban Investment

Subjects

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Urban Economics and Planning
Volume 6, Issue 2
Spring 2025
Pages 6-29

  • Receive Date 10 March 2025
  • Revise Date 03 May 2025
  • Accept Date 07 May 2025