Government’s Export-Oriented Strategies: From Strengthening SMEs to Launching Commercial Capitals

Amir Roshanbakhsh, Deputy for International Business Development at the Trade Promotion Organization of Iran, emphasized that exports in the country are still carried out in a traditional manner, largely based on personal experience. Speaking to the TPOI news correspondent, he noted: “Globally, exports succeed when conducted professionally. Professional exports rely on data and research, while traditional exports are small in scale. Professional exports follow well-defined mechanisms where key stakeholders in the export chain play a stronger role.”

The Role of SMEs in Global Exports

Roshanbakhsh highlighted that studies of global trade show the majority of exports are conducted through small and medium-sized enterprises (SMEs). These companies drive export growth in many countries.

He explained: “On average, raw or semi-processed exports generate around $350–$380 per ton. However, if the process continues down the value chain toward final products, the average export value rises to $1,200–$1,800 per ton.”

According to him, this does not mean raw exports should be abandoned, but to maximize profits, production must become export-oriented and focus on SME-led value chains. By identifying and promoting the final products of small factories and workshops, Iran can boost employment, increase value addition, and enhance overall export revenues.

Export Readiness Assessments for SMEs

Roshanbakhsh stressed that many exporting nations already leverage SMEs that have deep knowledge of target markets. These SMEs can engage in parts or the entirety of the export chain. To ensure their readiness, SMEs often undergo the Export Readiness Assessment (ERA). “If companies fail to meet the required readiness level, they can collaborate with SMEs to strengthen their capabilities,” he said.

He further emphasized the government’s efforts to make SME services more affordable and accessible to encourage businesses to rely more on their support.

Government’s Core Strategies for Export Development

Roshanbakhsh underlined that export-oriented production remains one of the government’s core strategies at the Trade Promotion Organization of Iran. “To guide exports in the right direction, we must transition from traditional to professional exports,” he said.

He also revealed that within the Seventh Development Plan, a new bylaw is being drafted for export intermediaries such as export consortia, export management companies, and other facilitators. Incentives and support schemes are being designed to ensure SMEs can access their services at lower costs.

Launching “Commercial Capitals” Across Iran

Roshanbakhsh proposed the establishment of “commercial capitals” in different regions of the country to strengthen SME-led exports. “For example, Mashhad could become the saffron capital of Iran. We intend to engage municipal authorities—who hold part of urban economic management—in order to align cities with their dominant trade sectors. This way, SME development can be geographically tailored within each province,” he said.

He concluded by noting that the plan to establish Iran’s commercial capitals aims to support export-oriented production, harness urban management in trade development, and decentralize commercial activities from Tehran.