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Article

Pathways to SME Sustainability in Heritage-Based Economies: Institutional Constraints and Adaptive Responses

by
Ehsan Tashakkori
1,
Adel Aazami
2,*,
Sebastian Kummer
2,*,
Sahar Mehrabi
3,
Jafar Pahlevani
4 and
Saeed Entezami
5
1
Department of Technology Management, School of Management, Economics and Progress Engineering, Iran University of Science and Technology, Tehran 16846-13114, Iran
2
Institute for Transport and Logistics Management, Department of Global Business and Trade, Vienna University of Economics and Business, 1020 Vienna, Austria
3
Department of Information Technology Engineering (E-Commerce), School of Industrial Engineering, Iran University of Science and Technology, Tehran 16846-13114, Iran
4
Department of Systems Modeling and Data Analysis, School of Industrial Engineering, Tarbiat Modares University, Tehran 14117-13116, Iran
5
Department of Business Administration, School of Management, Economics and Progress Engineering, Iran University of Science and Technology, Tehran 16846-13114, Iran
*
Authors to whom correspondence should be addressed.
Businesses 2026, 6(2), 22; https://doi.org/10.3390/businesses6020022
Submission received: 10 March 2026 / Revised: 22 April 2026 / Accepted: 24 April 2026 / Published: 28 April 2026
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Abstract

This study examines how heritage-based small and medium enterprises (SMEs) cope with economic shocks and institutional constraints in a semi-urban context. The study focuses on identifying context-specific barriers that shape SME growth and sustainability in heritage-based, semi-urban settings. Using a mixed-methods design, survey data from 200 SMEs were analyzed with PLS-SEM, and 20 semi-structured interviews were examined through thematic analysis, collected in Kashan, Iran (March–May 2025). We find that inflation and limited access to finance are the primary barriers to firm growth, followed by regulatory delays and administrative complexity. Qualitative findings reveal five recurring adaptive routines, short-cycle cash management, cooperative input purchasing, product simplification/micro-pivoting, reliance on local networks, and minimalist digitalization, that operate in a discernible temporal sequence to sustain firm continuity. By integrating resource-based and institutional perspectives, the paper advances meso-level theorizing on SME resilience and proposes a set of low-cost, actionable policy measures (e.g., streamlined e-licensing, targeted mobile microfinance, and buyer–supplier matchmaking) for local authorities and development practitioners.
Keywords: small and medium enterprises (SMEs); economic barriers; regulatory constraints; resilience mechanisms; local development small and medium enterprises (SMEs); economic barriers; regulatory constraints; resilience mechanisms; local development

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MDPI and ACS Style

Tashakkori, E.; Aazami, A.; Kummer, S.; Mehrabi, S.; Pahlevani, J.; Entezami, S. Pathways to SME Sustainability in Heritage-Based Economies: Institutional Constraints and Adaptive Responses. Businesses 2026, 6, 22. https://doi.org/10.3390/businesses6020022

AMA Style

Tashakkori E, Aazami A, Kummer S, Mehrabi S, Pahlevani J, Entezami S. Pathways to SME Sustainability in Heritage-Based Economies: Institutional Constraints and Adaptive Responses. Businesses. 2026; 6(2):22. https://doi.org/10.3390/businesses6020022

Chicago/Turabian Style

Tashakkori, Ehsan, Adel Aazami, Sebastian Kummer, Sahar Mehrabi, Jafar Pahlevani, and Saeed Entezami. 2026. "Pathways to SME Sustainability in Heritage-Based Economies: Institutional Constraints and Adaptive Responses" Businesses 6, no. 2: 22. https://doi.org/10.3390/businesses6020022

APA Style

Tashakkori, E., Aazami, A., Kummer, S., Mehrabi, S., Pahlevani, J., & Entezami, S. (2026). Pathways to SME Sustainability in Heritage-Based Economies: Institutional Constraints and Adaptive Responses. Businesses, 6(2), 22. https://doi.org/10.3390/businesses6020022

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