Small businesses launched by Iraqi entrepreneurs are struggling with limited financing, complex licensing requirements, rising costs and weak markets, highlighting the need for a more supportive environment for local production and individual initiatives.
Maher Ammar, a 36-year-old woodworking entrepreneur, started his business after borrowing money from an acquaintance. He said his attempts to secure bank financing failed because he could not provide the required employee guarantor or property owner, and could not afford the advance payment sometimes demanded by property owners.
Ammar said these requirements can force young entrepreneurs into debt before their projects begin. He described the banking procedures, particularly the guarantor requirements, as capable of stopping a business at its earliest stage.
Economist Mohammed Haider said the challenge extends beyond capital and business planning. Entrepreneurs must also keep operating amid Iraq’s shifting economic conditions, including fuel and energy problems, price increases and market stagnation.
Haider called for greater flexibility from government bodies dealing with small businesses. He also pointed to training programs, including those organised by the Iraqi Federation of Industries, as useful for improving financial management, planning and market analysis.
The Central Bank of Iraq recently announced an increase in the financing ceiling for micro, small and medium-sized businesses by improving banks’ liquidity, with the aim of expanding access to funding.
Source: Shafaqna Iraq
