TEHRAN – Iran’s national business environment index improved marginally in the spring to 5.95 from 6.01 in the winter, on a scale where 10 is the worst score, the Iran Chamber of Commerce, Industries, Mines and Agriculture’s (ICCIMA) research center said.

The quarterly survey found that the five most problematic factors for businesses were: unpredictability and volatility of raw material and product prices; difficulty securing bank financing; instability in policies, laws and regulations; unfair tax auditing and collection procedures; and the production and distribution of substandard or counterfeit goods in the market.

Based on the Shane general entrepreneurship model, which weighs different factors in calculating the score, Iran’s spring business environment index stood at 6.13, slightly better than the winter figure of 6.16.

The average score for the economic environment – which covers macroeconomic conditions, finance, geography and production structure – was 6.64, down from 6.68 in winter. The institutional environment – which includes political, educational, cultural, technological, legal and governmental factors – averaged 5.72, compared with 5.74 in the previous quarter.

Among these, the legal and regulatory environment was rated the most favorable with a score of 5.36, while the financial environment was assessed as the least favorable at 8.22. The ICCIMA said the Shane model offers a more precise measure than the national index due to its weighted approach to different components.

The report comes as Iranian businesses continue to navigate high inflation, currency volatility and financing constraints, while policymakers seek to foster entrepreneurship and attract investment. Analysts say that despite the marginal improvement, sustained reforms are needed to address chronic bottlenecks in access to finance, regulatory stability and tax fairness.

EF/MA