Institutional Embeddedness and Its Effectiveness on Home Businesses

Authors

1 Professor of Sociology, Shahid Beheshti University

2 PhD student of Social Sciences, Shahid Beheshti University

Abstract

The recent economic and socio-cultural circumstances in developed and developing countries have increased the attention towards domestic businesses as an opportunity for employment access, sustainable livelihood and economic development. The present study aims to review domestic businesses’ laws in Iran and other countries. Methodologically, this study employs comparative method, analysis of existing laws, and semi-structured interview. It also uses a survey that includes 125 owners of domestic business in Tehran. The results of this study confirm the fact that while there have been some legal arrangements for domestic businesses, they are still in very early formation stage and not yet sufficiently stablished. Moreover, when the legal supports are available, the domestic businesses tend to perform more successfully. Finally, the results presented and discussed in this paper have shown that the most important determinants of domestic businesses’ success are information access, approval obtaining, loan, and market.
 

Keywords