Finance and sales growth at the firms level in Iran : does type of spending matter?

This study examines the relationship between access to finance and growth in sales for micro, small, and medium enterprises (MSMEs) in Iran. We use data from 486 firms in 5 provinces, and our findings indicate that external financing positively affects sales growth for MSMEs. The results suggest financing for research and development expenditures, production diversification, new employment, and advertising can significantly increase sales growth. We also find that spending on intellectual property, labor training, and land and building acquisition negatively moderates the relationship between finance and sales growth.