Background: Today, the secret of the success of organizations, in addition to human capital, is entrepreneurship and ethical development. This has affected even small and medium-sized businesses. The main purpose of the research is to present and explain the pattern of entrepreneurship development in the small and medium businesses.
Method: This research is an exploratory research that is an applied descriptive survey. The statistical community includes all small and medium-sized business executives and experts and includes a group of experts and faculty members and strategic managers of small and medium enterprises with a total of 20 subjects in the qualitative sector. The research sample was selected in a small section of 250 managers and employees and in the qualitative section, 15 people were selected by judgment method. The data gathering tool was a researcher-made questionnaire. Descriptive statistics and inferential statistics were used to cognize the data.
Results: The results showed that the relationship between dimensions of the ethical climate of entrepreneurship, entrepreneurship ecosystem and innovation, economic, financial and incentive policies, structural and institutional factors, entrepreneurial strategies and the factors of the state and growth of industry with the development of ethical entrepreneurship are positive and significant at the significant level of 0.05.
Conclusion: In small and medium-sized businesses, for the development of ethical entrepreneurship, there must be a coherent moral, economic, financial and incentive environment, and an entrepreneurial ecosystem in line with the ethical climate with entrepreneurial structures and entrepreneurial strategies.