Controlling and administering cities have been more difficult with their increasing expansion and growth. Urban entrepreneurship is one of the strategies that directed cities toward self-control by reducing unemployment rate and its arising problems, creating sustainable revenue, preparing the ground for citizens’ independence etc. Thus, identifying effective factors on urban entrepreneurship can prepare the ground for its expansion, and consequently urban sustainable development. This research aims to identify effective economic factors on urban entrepreneurship in Tehran Metropolis. This research has been done by using qualitative method by semi-structured interviews with 12 Tehran Municipality officials, urban experts, and Tehran entrepreneurs by using purposeful sampling and snowball methods. Obtained data of interviews were analyzed by theme analysis method. Finally, effective economic factors on urban entrepreneurship were identified in the form of five main themes, tools, financial mechanisms, smart urban economy, urban occupations, commercialization of ideas, and urban markets.
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