Supporting SMEs, priority of city management in 2016

TEHRAN, Apr. 05 (MNA) – The secretary of IUESA has said city management can take influential steps in improving energy efficiency with particular look on small and medium enterprises (SEMs).

Seyed Mohsen Tabatabaei made the remarks touching upon the naming of the new Iranian year 1395 as the 'Year of the Resistance Economy: Action and Implementation' by the Leader of the Islamic Revolution and its impacts on the area of urban economy.

“Given that we are in the final decades of advancement and equity, attempts and efforts to address economic challenges need to be boosted at the current time,” highlighted the secretary of Iran Urban Economics Scientific Association (IUESA).

The official stressed that Resistance Economy makes sense in the field of urban economy calling for improvement of infrastructures of urban economy even more than other areas; “today, more than 70 per cent of the Iran’s population live in cities and the figure is estimated to reach 80 per cent in future indicating that desirable servicing of city management to the increasing urban population requires dynamic economy.”

Noting that only 20 to 25 percent of financial costs of projects and urban services are financed from sustainable resources, Tabatabaei said “the figure hits 70 per cent in many developed cities even in Asia.”

He underlined that the low share of sustainable revenues would result in inadequate presentation of appropriate and comprehensive services to the citizens and municipalities will be on the verge of bankruptcy if a crisis like downturn in housing is provoked.

Deeming renovation duties or property tax as one of the most important resources of sustainable revenues of municipalities, Tabatabaei commented “the figure is about 42 percent for Toronto, 25 percent for Cape Town, 63 percent for Seoul, and 19 percent for Mumbai, but only 2.6 percent for a metropolis like Mashhad.”

IUESA secretary further reiterated that that city management can take influential steps in two fields of improving energy efficiency with a particular look to small and medium industries adding “more than 75 per cent of energy consumption occurs in the cities.”

“Unfortunately, the figures are far from acceptable on energy consumption in Iran as it can be compared with densely-populated countries like China in this regard,” maintained the official urging city management to apply up-to-date knowledge in order to increase efficiency and reduce energy consumption.”

Tabatabaei also pointed to SMEs asserting “nearly 85 per cent of private enterprises are small and medium ones though they are in very bad conditions due to economic downturn.

“Their major problems include providing liquidity,” emphasized the official concluding “since the vast majority of these firms are active in cities, city managers should apply comprehensive plan to support them.”

The International Conference on Urban Economy will be held in Tehran on Wednesday, May 18, 2016 under the administration of Iran Urban Economics Scientific Association (IUESA).




News Code 115573


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