THE ROLE OF THE GOVERNMENT IN THE CREATION AND DEVELOPMENT OF NEW BUSINESSES WITH AN EMPHASIS ON THE ENTREPRENEURIAL ECOSYSTEM

Abstract

Small and Medium Enterprises (SMEs) are considered the most prominent symbols of entrepreneurship in any country. The main objective of this research is to determine the role of the government in the creation and development of new businesses, with a particular focus on the entrepreneurial ecosystem. This descriptive study employed a correlational research method with a statistical population comprising 320 business owners and entrepreneurs from the 3rd district of Tehran. Using Morgan's sample size estimation table, 169 individuals were selected as the statistical sample. Data collection tools included questionnaires focusing on the government's role (reliability: 0.936), business creation (reliability: 0.857), and the entrepreneurial ecosystem (reliability: 0.955). Confirmatory factor analysis, conducted using Lisrel software, was employed to assess the validity of the questionnaires. The collected data were analyzed using descriptive and inferential statistics, including the Kolmogorov-Smirnov test and structural equation modeling, with the help of Lisrel software. The research findings indicate that the government, through its various components such as financial support, infrastructure and government policy, investment funds, and legal structures, has a significant influence on the creation and development of new businesses, particularly within the context of the entrepreneurial ecosystem. Therefore, it can be concluded that the government, through its policies and actions, must pay special attention to the country's entrepreneurs, providing them with the necessary support and creating a conducive environment for their economic activities.