Attachments
EXECUTIVE SUMMARY
This report outlines the results of a market mapping exercise undertaken by IOM in partnership with the Chambers of Commerce and Industry (CoCIs) and Iraqi Industries Federation in Baghdad, Kirkuk, Sulaymaniyah and Erbil. The analysis is based on 343 small and medium-sized enterprises (SMEs) referred by the CoCIs who agreed to participate in a screening interview. These firms were identified from over 3,000 listed in the records shared by the CoCIs, highlighting the need for updated SME information systems.
IOM enumerators interviewed these firms by phone to screen suitable businesses and ascertain their interest in loans and business advisory services. The report classifies businesses based on their level of formality and investment readiness: interest in loans, bank accounts, tracking finances and being registered with a ministry. Out of the firms surveyed, 154 (45%) are considered suitable for loan referrals and 149 (43%) may benefit from business advisory services to strengthen their investment readiness.
The report analyses the characteristics of the screened firms, including financial data, business size, age, gender gaps, and geographical differences. The chosen screening criteria resulted in firms with higher average asset and profit values, longer operation trajectories, and more female employees. However, the formal requirements for successful loan referrals tend to disadvantage female business owners and firms in governorates with a high incidence of displacement.
For SMEs not considered suitable for loan referrals, the report analyses the criteria they lacked and their willingness to participate in IOM’s business advisory capacity-building services. Among the 318 businesses interested in advisory services, more than half (169) met the investment readiness conditions for referral. At the same time, 93 (29%) lacked experience in relationships with financial entities (measured by having a bank account), 62 (19%) lacked proper financial tracking, and 42 (13%) lacked registration.
We propose several recommendations to enhance SME access to finance. First, the 154 identified SMEs should be referred to partner financial institutions for subsidized loans, leveraging collaboration with development partners. For identified informal enterprises, expanding financing options and offering advisory services is crucial, as they often face exclusion from traditional funding. Efforts to boost the investment readiness of SMEs through capacity-building initiatives will also broaden their eligibility for future loans. Targeted support is essential for female entrepreneurs and businesses in conflictaffected areas to overcome financing challenges, with interventions such as bank engagement and training programmes. Strengthening national SME information systems in partnership with Chambers of Commerce will improve data accuracy for long-term programming. Meanwhile, open calls for proposals should continue to recruit businesses inclusively, reaching those in underserved regions until national registries are updated.