Identifying Obstacles to Business Environment Development in Selected Less Developed Provinces

Abstract

The present study aims to identify and analyze the main obstacles affecting the development of the business environment in selected less developed provinces of Iran. This study adopts a qualitative approach using content analysis. Data were collected through semi-structured interviews with 19 experts, including university professors, entrepreneurs, economic actors, and specialists in economic development. Inclusion criteria required relevant academic qualifications, at least five years of professional experience, and practical familiarity with business environments in less developed provinces. Data analysis was conducted through open, axial, and selective coding to extract key concepts and organize them into coherent categories. Theoretical saturation was achieved after the seventeenth interview, although data collection continued until the nineteenth interview for validation. The findings indicate that obstacles to business environment development in less developed provinces can be categorized into five main dimensions: economic barriers (such as high unemployment, weak investment attraction, and limited financial access), infrastructural barriers (including deficiencies in transportation, energy, and digital infrastructure), socio-cultural barriers (such as skilled labor migration, low entrepreneurial culture, and limited human capital), environmental and climatic barriers (including harsh geography and dispersed populations), and legal-managerial barriers (such as complex bureaucracy, centralization, and lack of integrated policies). These barriers interact systematically and constrain economic dynamism and competitiveness. The study concludes that improving the business environment in less developed provinces requires a comprehensive and integrated strategy addressing structural, institutional, and human capital challenges simultaneously. Policy interventions focusing on infrastructure development, regulatory reform, decentralization, and investment facilitation are essential to achieve sustainable regional growth, reduce disparities, and enhance employment opportunities.