According to principle 43 of the constitution law, economic independence and eliminating poverty and deprivation are two of the most important financial goals of the Islamic Republic of Iran that, emphasizes the participation of people in economic activities within the private and cooperative sector. In the years after the Iran–Iraq war, there were many attempts to prominent the role of the private sector in the economic regime. However, in recent years, we can see that vast parts of this effort have led to economic inefficiency, which has imposed many costs on society. The transference of companies in loss-making conditions without reforming the structure, transference for solvency, ambiguity in the nature and structural position of non-governmental public institutions, security approaches to privatization, and many other factors caused by silence in law or conflicts between the rules, are legal barriers that have led to the emergence of the current situation in the private sector. According to this research, with a descriptive and analytical view with the use of library resources and existing documents, it was determined that the amendment of laws and regulations regarding facilitating the entry of foreign capital, limiting the handing over to non-governmental public institutions, providing an incentive package to capital owners and not confronting authoritarianism with the category of privatization could play a key role in improving the efficiency of the private sector.