Document Type : Research Paper
Authors
1
Department of Geography, YI. C., Islamic Azad University, Tehran, Iran
2
Department of Urban Planning, Shi.C., Islamic Azad University, Shiraz, Iran
10.22034/jsc.2025.540423.1869
Abstract
A B S T R A C T
The development of new cities in Iran, especially Parand, is a key strategy to alleviate the population pressure on megacities and achieve regional balance. However, many of these cities, including Parand, have become dependent and unproductive settlements due to weak economic links, poor infrastructure, and a lack of sustainable employment opportunities. This research aims to analyze the role of entrepreneurship in the sustainability of new cities, with a focus on Parand. A mixed-methods approach was used, combining descriptive-analytical and exploratory-explanatory methodologies. The qualitative phase involved interviews with 20 experts, identifying six main themes and 28 indicators for the entrepreneurial ecosystem. In the quantitative phase, data from 384 residents were analyzed using SPSS and LISREL software. The results revealed that institutional structures and supportive policies, local leadership, and collective action are the most influential factors in promoting entrepreneurship and urban sustainability. Economic dependence and weak urban identity emerged as significant barriers to entrepreneurial development. This study emphasizes the importance of integrating institutional, infrastructural, and cultural interventions in development policies for new cities and offers a conceptual framework for promoting sustainable entrepreneurship.
Extended Abstract
Introduction
Rapid urbanization and population growth have presented significant urban planning challenges, impacting housing, employment, and quality of life. To address these issues, many governments, including Iran, have adopted new city development policies to manage urban growth and achieve regional balance. Cities like Parand were established to alleviate demographic pressure on metropolises, improve urban living, and ensure equitable service access. However, these initiatives often face substantial obstacles, including weak economic infrastructure, insufficient sustainable employment opportunities, and a lack of organic connections with the mother city, leading to dependent settlements. Parand, despite its physical and demographic potential, largely functions as a dormitory city due to limited local economic prospects. Urban entrepreneurship is increasingly recognized as a vital strategy for economic revitalization, social dynamism, and enhancing resilience in new cities. It acts as a multi-dimensional tool to address job scarcity, economic dependence, and low social capital, simultaneously impacting economic, social, and institutional sustainability. Beyond mere economic activity, entrepreneurship transforms social and institutional processes, fostering new job creation, promoting innovation, strengthening local belonging, and generating knowledge networks. This research aims to structurally analyze the effective development of entrepreneurship in the sustainability of new cities, with a case study of Parand New Town, by exploring the interconnectedness of entrepreneurial ecosystems. These ecosystems involve various actors, institutions, policies, resources, and social interactions that facilitate business creation and growth. This study highlights the need to foster sustainable entrepreneurial ecosystems that integrate institutional, infrastructural, and cultural interventions, moving these emerging cities towards economic independence and a distinct urban identity. Key components of successful entrepreneurial ecosystems include access to skilled labor, supportive social culture, financial capital, intermediary institutions, inter-sectoral collaboration, and stable supportive policies.
Methodology
This applied research employs a mixed-methods approach, combining descriptive-analytical and exploratory-explanatory methodologies, to improve entrepreneurial development in new cities for urban sustainability. The study population includes experts, urban managers, entrepreneurial activists, and residents of Parand New Town, which serves as the case study area. For the qualitative phase, 20 experts in urban planning, entrepreneurship, and urban planning were selected using purposeful and snowball sampling. In the quantitative phase, a stratified random sampling method was applied to 384 Parand residents, with the sample size determined using Cochran's formula at a 95% confidence level. Data collection involved library and documentary studies for the theoretical framework and literature review. A researcher-made questionnaire was used for residents and entrepreneurs, while semi-structured interviews with academic elites and urban managers provided in-depth analysis of institutional and policy factors. Field observations also documented physical and institutional challenges and capacities in Parand. Content validity of the questionnaire was assessed through expert opinions and the CVR index, and reliability was confirmed using Cronbach's Alpha (values above 0/7). Quantitative data were analyzed using SPSS and LISREL software, employing Confirmatory Factor Analysis (CFA), Structural Equation Modeling (SEM), Path Analysis, one-sample T-test, and Friedman test. Qualitative data from interviews were analyzed using Thematic Analysis.
Results and discussion
The qualitative phase, based on interviews with 20 key stakeholders in Parand, identified six main themes and 28 indicators for the entrepreneurial ecosystem: Entrepreneurial and Innovation Culture, Supportive Structures and Policies, Human Capital Development and Networking, Access to Capital and Infrastructure, Challenge of Urban Identity and Economic Independence, and Local Leadership and Collective Action. This structured approach aimed to enhance precision in the subsequent quantitative modeling.
Quantitative analysis of data from 384 residents using SPSS and LISREL confirmed the conceptual model's strong statistical fit (RMSEA = 0.067, p < 0.0000, χ2/df = 2.90). Most factor loadings were above 0.6, indicating robust relationships between indicators and their respective themes. High factor loadings were observed for indicators such as "public culture supports innovative ideas," "administrative processes for starting a business are facilitated," "possibility of networking with other entrepreneurs exists," and "access to new and innovative technologies is available," underscoring their critical importance. The t-value model further confirmed the statistical significance of all relationships (most t-values > ±2.58), indicating high reliability and generalizability. The Structural Model (Y-model) revealed that "Supportive Structures and Policies" and "Local Leadership and Collective Action" had the strongest direct impacts on entrepreneurial sustainability in Parand New Town. "Access to Capital and Infrastructure" acted as a significant mediator between institutional structures and local economic development. "Entrepreneurial and Innovation Culture" indirectly influenced urban sustainability by facilitating human capital development and network interactions. Conversely, "Challenge of Urban Identity and Economic Independence," characterized by strong dependence on Tehran and a lack of local job opportunities, emerged as a significant structural barrier, negatively impacting institutional linkages and sustainable development. These findings highlight that for new cities, a qualitative approach to development is crucial, moving beyond mere quantitative growth to foster genuine economic independence and identity.
Conclusion
This research aimed to structurally analyze effective entrepreneurial development in the sustainability of new cities, focusing on Parand New Town. Qualitative findings identified six core themes for the entrepreneurial ecosystem, which formed the theoretical framework for the quantitative model. Quantitative analysis confirmed the conceptual model's strong statistical fit and the validity of its indicators. The structural model revealed that supportive policies, local leadership, and collective action are the most influential factors. Human capital, technological infrastructure, and initial investment also play crucial mediating roles. For Parand, developing skilled training, strengthening financial support, and fostering collaborative entrepreneurial spaces are vital due to lacking local institutions, university-industry ties, and technological infrastructure. While entrepreneurial culture has a less direct impact, it facilitates internal ecosystem capacities through human capital and networking. The "challenge of urban identity and economic independence," reflecting Parand's strong reliance on Tehran and lack of local opportunities, was identified as a significant structural impediment, underscoring the need for new cities to transition from dependent residential areas to value-producing centers. The study concludes that achieving sustainable entrepreneurship in new cities necessitates integrating institutional reforms, infrastructure and human capital development, and the reconstruction of cultural and social entrepreneurial foundations. These findings offer a practical framework for policy design, entrepreneurial ecosystem evaluation, and localized entrepreneurial models for other emerging cities in Iran.
Funding
There is no funding support.
Authors’ Contribution
Authors contributed equally to the conceptualization and writing of the article. All of the authors approved thecontent of the manuscript and agreed on all aspects of the work declaration of competing interest none.
Conflict of Interest
Authors declared no conflict of interest.
Acknowledgments
We are grateful to all the scientific consultants of this paper.
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