Goal: Smart improvement of the business environment for Small and Medium-Sized Enterprises (SMEs), as a prerequisite for achieving sustainable economic growth, fostering innovation, and enhancing national competitiveness, requires the development of an ecosystem in which decision-making, policies, and support services are grounded in data, technology, continuous learning, and responsive governance. In Iran, factors such as institutional fragmentation, policy instability, weak coordination among executive agencies, limitations in digital infrastructure, and the lack of effective alignment between macro-level policies and the actual needs of SMEs have reduced the effectiveness of support mechanisms and constrained the innovation and competitiveness capacities of these enterprises. Accordingly, the present study aims to develop a model of the factors influencing the smart improvement of the SME business environment in Iran.

Method: This applied research was conducted using an inductive approach within the interpretive paradigm. A qualitative field research method was employed to identify the factors influencing the smart improvement of the SME business environment. Data were collected through semi-structured interviews with 15 experts in the SME sector from both public and private organizations. Participants were selected using purposive criterion-based sampling, and data collection continued until theoretical saturation was achieved. The data were analyzed using thematic analysis based on the Attride-Stirling thematic network approach.

Finding: The findings revealed that the model for the smart improvement of the SME business environment in Iran consists of five overarching themes. The first is a responsive political-legal environment, emphasizing institution-building, administrative agility and smartization, policy transparency and intelligent monitoring, smart learning, and stakeholder participation. The second is a predictable economic environment, which strengthens economic stability, targeted resource allocation, and economic resilience. The third is an empowering socio-cultural environment, facilitating human capital development, network collaboration, and entrepreneurial culture. The fourth is a digital technological environment, which enhances the smartization capacity of businesses through the development of digital infrastructure, innovation, technological human capital, and knowledge networking. Finally, a competitive international environment provides the conditions for SMEs to participate effectively in regional and global markets.