As a phenomenological study, it aims to identify challenges and obstacles that prevent the effective activities of the university’s spin-off companies and propose alternative strategies for the development of these companies. Participants included heads of scientific and research centers, heads of science and technology parks, COEs of spin-off companies, managers of growth centers, entrepreneurs, HE’s policy makers and planners, universities’ entrepreneurship centers, board of trustees of the Fund for the Support of Researchers and Technologists who were selected and interviewed purposefully. The data was collected, coded and analyzed using in-depth interviews with 19 participants. Findings shows that two internal and external obstacles prevent the effective operation of spin-off companies which need to be tackled appropriately if it is expected that these companies play a critical role in the country’s economic development.
