Loading Publications...
Publication•September 8, 2021
Iraqi Startups' Ecosystem Monitor V2.0
#ICT Iraq#Human Resources#Capacity Building
September 8, 2021mujahed
This research explores the influence of the COVID-19 pandemic on the Iraqi entrepreneurial ecosystem and weighs the results against the previous Iraqi Startups Ecosystem Evaluation study published by KAPITA in 2020, to highlight the changes brought about by the onset of the pandemic, and explore comparisons with other selected economies. PDF
Publication Overview
September 8, 2021
This research explores the influence of the COVID-19 pandemic on the Iraqi entrepreneurial ecosystem and weighs the results against the previous Iraqi Startups Ecosystem Evaluation study published by KAPITA in 2020, to highlight the changes brought about by the onset of the pandemic, and explore comparisons with other selected economies. PDF
Full Content
Executive Summary
In this research, we explore the influence of the COVID-19 pandemic on Iraq's entrepreneurial landscape, comparing findings against KAPITA's 2020 study and other selected economies. The Iraqi economy, heavily reliant on crude oil, was severely impacted by the pandemic's dual shock of plummeting oil prices and stringent restrictions on social and economic activity. This crisis underscored the urgent need to lessen dependence on the oil industry and foster private sector entrepreneurship to enhance economic resilience, create jobs, generate income, and drive overall growth.
The report adopts a methodology based on the Global Entrepreneurship Monitor (GEM) report, assessing 14 frameworks through insights gathered from 30 experts across various sectors. The experts rated statements on a 5-point scale.
Key Findings:
- Financial Support: Despite some improvements since 2019, aided by initiatives like the Central Bank of Iraq's "one trillion Iraqi dinar" initiative and KAPITA’s Angel Investor Network, Iraq ranks lowest in financial support among selected economies. The dual shock of COVID-19 and existing bank reluctance to lend have made it difficult to access funding for new and growing firms.
- Government Policies and Programs: Iraq ranks consistently lowest in governmental support for nascent and new firms. Policies largely favour the public sector, and restrictive regulations, widespread corruption, and lengthy business registration processes deter entrepreneurship. Most support programs come from international and private organisations, not the Iraqi government. However, the recent launch of the eRegulations information portal offers a step-by-step guide for business registration.
- Education and Training: Entrepreneurship is not a major focus in the Iraqi educational system, particularly at primary and secondary levels, leading to a lack of foundational knowledge and confidence among aspiring entrepreneurs. Efforts like the Baghdad Business School aim to provide market-driven training.
- Research and Development Transfer: Iraq shows a low ranking, largely due to damage sustained by universities and research centres. While new technologies are considered affordable, their availability is an issue, and there is insufficient support for engineers and scientists to commercialise their ideas or for technology-based ventures.
- Commercial and Professional Infrastructure: Though second to last among selected economies, this is considered one of the more developed frameworks. However, concerns persist regarding access to services, particularly banking, due to the dominance of state-owned banks, lack of a credit registry, and high collateral requirements.
- Market Openness: This framework saw a decrease in score but remains relatively developed due to dynamic changes in B2B and B2C markets. The primary hindrance is ineffective and poorly enforced anti-trust legislation, allowing firms to manipulate markets and block competition.
- Access to Physical Infrastructure: This area is slightly more developed, with most new firms able to afford and access utilities and communications. However, Iraq trails other countries due to the unreliability of physical infrastructure support and process setbacks caused by COVID-19 restrictions.
- Cultural and Social Norms: Iraq ranked last, highlighting a prevalent anti-risk-taking culture that discourages entrepreneurship and encourages public sector employment. Sparse media coverage further hinders awareness and acceptance of entrepreneurial paths.
- Entrepreneurial Opportunities: Despite a slight decrease due to the pandemic, this is one of the more developed frameworks. The main challenge is the lack of access to vital information for evaluating opportunities, linked to deficiencies in education/training and R&D transfer.
- Skills and Capacity in General Population: Low scores indicate that many people lack the ability to organise resources for new businesses, possibly due to insufficient entrepreneurial education.
- Motivations: While the overall entrepreneurial environment is challenging, motivations are relatively high. Successful entrepreneurs are held in high regard, but there is a need for increased media representation and awareness campaigns to make entrepreneurship a more desirable career choice.
- Women and Entrepreneurship: This framework shows low scores, reflecting the significant obstacles women face in accessing funds and participating in the labour force, with issues being deeply rooted and requiring substantial attention.
- Intellectual Property: Scores are significantly low. While intellectual property laws exist, they are not properly enforced, leading to widespread piracy and a lack of trust among new firms that their patents, copyrights, and trademarks will be respected.
Publication Information
Publication Details
Author:mujahed
Published:September 8, 2021
Category:report
Documents:1 PDF
Tags:3
Academic Metadata
DOIkmnknmmkk
Suggested Citation
kmnknmmkk
Need Custom Research?
Contact our research team to discuss your specific research needs and objectives. We provide tailored analysis for your business.
Contact Research TeamWork with KAPITA Research
Need this level of insight for your own decision?
This report is a sample of what our team produces. We run custom market research, sector deep-dives, competitor mapping, and market-entry studies for businesses and investors operating in Iraq. Tell us what you're trying to figure out — the first consultation is free.
Related Publications
