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Although small and medium enterprises are important in the production and employment, these firms have structural limitation in terms of human and material resources. These limitations are highlighted after implementation of targeted subsidies in Iran, release prices of energy carriers, and simultaneity of political and economic situation. The main challenge in the current path of sustainable development is addressed to all sectors of society such as engineering and production. Manufactured products must consider the impact of three aspects of sustainability over their life cycle. The three aspects of sustainability as an integral part of sustainability issues are economic, environmental, and social factors. Therefore, in this study, for achieve sustainable economic development in Iran, consider only economic aspect. Because, it will greatly benefit from the transfer of advanced production technologies in industry through international agreements such as the clean development mechanism (CDM). However, the highly competitive environment is critical because of more cost-effective projects, which is why Iran needs to strike a balance between sustainable development and profitability for projects. In this study, identifying and ranking of major challenges of leading small and medium industries have been studied. It also uses the failures mode and effect analysis (FMEA) technique and survey experts and managers of small and medium industries in the province recognized and decision model using several branches. VIKOR was ranked as the most important challenge. The results show that exchange rate volatility has been the highest priority, so the first challenge has been identified. Similarly, the political boycott and the rise in the cost of production and cost of product manufacturing enterprises were identified as the next challenges.

Applying Sustainable Development to Economic Challenges of Small and Medium Enterprises after Implementation of Targeted Subsidies in Iran