In entrepreneurial ecosystems, particularly among small and medium-sized enterprises (SMEs) that face limited access to financial resources and persistent working capital constraints, factoring (accounts receivable financing) can play a significant role in improving cash flow, reducing credit risk, and enhancing financial sustainability. However, the development of factoring in Iran has been hindered by various institutional, structural, and infrastructural barriers, making a comprehensive and systematic examination of these factors essential. Accordingly, the aim of this study is to identify, structure, and analyze the causal relationships among the critical factors influencing the development of factoring-based financing within Iran’s entrepreneurial ecosystem.
This study adopts an exploratory mixed-methods approach. In the first stage, a meta-synthesis and systematic review of 25 international studies were conducted to identify ten key factors affecting the development of factoring. In the second stage, Interpretive Structural Modeling (ISM) and MICMAC analysis were employed, drawing on expert judgments from specialists in finance, banking, and entrepreneurship, to structure these factors hierarchically and to classify them based on their driving and dependence power.
The findings indicate that legal and regulatory infrastructure, economic stability, and government support and supervision act as the primary institutional driving forces behind the development of factoring. In contrast, credit rating systems and technological infrastructure function as linkage variables, forming the operational core of modern factoring by transmitting the effects of institutional factors to the operational level. Meanwhile, the characteristics of factors, creditors, and debtors are identified as dependent variables, reflecting the overall performance and effectiveness of the factoring system rather than serving as independent drivers. Overall, the results highlight that the successful development of factoring in Iran requires a systemic and coordinated approach that simultaneously addresses institutional reforms, the development of comprehensive credit information systems, technological investment, and the enhancement of managerial capabilities.
The insights provided by this study offer valuable guidance for policymakers, financial institutions, and entrepreneurial ecosystem stakeholders in designing effective, sustainable, and context-specific mechanisms for the development of factoring-based financing in Iran.