Exploring the spatial distribution pattern of micro and small businesses in rural areas: a case study of Gilan province, Northern Iran

As most rural areas in developing countries face economic challenges, financial support for micro and small businesses can help to alleviate the situation. To result in regional growth and development, this should be accompanied by an organized and equitable distribution of support. This study examined the spatial distribution of government financial support for micro and small businesses in Gilan province's eastern villages, which are spread across five cities and a total of 80,235 households. All micro and small rural businesses that received official support from 2012 to 2017 were included in the study's statistical population. GIS software spatial analysis tools were used to investigate the geographic distributions of these firms in rural areas. Results indicated that, except for 2013, the distribution of financial support in rural areas had a clustered pattern, indicating that these supports were unable to reach all rural areas. Additionally, there was a significant difference between the areas in the number of supported enterprises, ranging from 27 to 290 businesses. Finally, the findings indicated that there was no consistency in the financial support provided to micro and small businesses during the aforementioned years since there were numerous fluctuations and no upward trend when comparing the study areas on an annual basis. The findings of this study emphasize the significance of the comprehensive spatial distribution of financial support for micro and small businesses by focusing on legislators' and policymakers' decisions in allocating an equal financial budget to each region.