Money injection to enterprises will not solve the problem

According to Mehr News Agency quoting Iran Chamber of Commerce, Industries, Mines, and Agriculture, in 2016 the plan to boom production of manufacturing companies was considered by the Ministry of Industry, Mine, and Trade in collaboration with the Central Bank according to which 7500 small and medium size producing units received banking facilities of 16 thousand billon Rials at the beginning, but eventually it was expanded within the plan to boom production, and around 24 thousand industrial and agricultural manufacturing units were paid around 17 thousand billion Rials of facilities.

On the decision of Ministry of Industry, Mine, and Trade to provide facilities for the small enterprises, Abolfazl Roghani, the chairman of Industries and mines commission of Iran Chamber said, "We expected the problems of previous plans would not continue; we expected Mr. Yazdani, the Deputy Secretary to consult Iran Chamber as the private sector parliament and get their expert opinions on the problems and issues of small and medium size enterprises before releasing this news to media so that the previous systematic problems would not be repeated."  

He regarded this consultation as an obligation for ministries and governmental economic organizations and stressed, "Iran Chamber should express their opinions on the issues of private sector enterprises; last year, we also mentioned this problem of the plan and stated that they had to have dialogues with the private sector on the relevant strategies to them."

On the problems of the plan to boom production and providing facilities for the small and medium size companies, Roghani said, "While Iran Chamber was not consulted at all on the development and implementation of the plan, there have been other flaws in the plan a main example of which is that the numerous and contradictory statistics of the amount of facilities were considered. We did not understand how much the facilities were and who were paid to although a part of the facilities were renewal and extended ones." 

This entrepreneur reiterated, "An optimization website was launched to apply for the facilities and to check the applications where the enterprises referred and enrolled. Their claims were checked only by the Ministry, and there was no member of Iran Chamber in the work group of checking the applications."  

The chairman of Industries and mines commission of Iran Chamber noted on the plan to boom production, "It was a very good plan, but there had brought about problems because of the contradictions, not following the standards and regulations. The plan is implemented based on the personal taste and style." 

He considered the most important problem of the small and medium size enterprises recession apart from lack of liquidity and said, "When the facilities are given to the enterprises that are involved in recession and do not have a market for their products, this prescri‌ption can not heal the pain of producers."

The member of Iran Chamber introduced the lack of demands as the most important problem of manufacturers and said, "The government should be able to stimulate the demands; money injection will not lead to the boom in enterprises."

According to the chairman of Industries and mines commission of Iran Chamber, the current problem of enterprises is a pack of intertwined issues; the recession and lack of liquidity form one of the obstacles of production. On the other hand, the enterprises require changing their technology and skilled workforce. Moreover, they should identify their sales market well; and the laws in the fields of labor, tax, and insurance should be revised."

In reply to the question whether the facilities given to small and medium size enterprises managed to remove their problems or not, Roghani Golpaigani said, "The injection of the money to these units were not ineffective, but money and liquidity is not the single solution to their problems. Their problem is not resolved without sales market, but there has been a change in the conditions of enterprises."