BY SANA MUSTAFA- PUBLISHED IN 03/17/2017
Introduction: stand out in the conditions of the current economic crisis, the need to encourage investment in small and medium enterprises. Show this necessity especially when unemployment rates rise and fall of oil prices and the resulting decline in budget expenditures, including [...]
Stand out in the conditions of the current economic crisis, the need to encourage investment in small and medium enterprises. Show this necessity especially when unemployment rates rise and fall in oil prices and generate reduced the state budget expenditures, as well as the demands of the international financial institutions need to reduce poverty and develop ways to revive the national economy of Iraq, to the other the right reasons. In response to these claims it is necessary that the Iraqi government to take effective measures to encourage small and medium enterprises, and the Iraqi Central Bank to provide concessional loans to banks is aimed at providing the necessary funding for the expansion of the establishment of such projects.
The focus of the research problem on the weakness of government support for the time being small and medium enterprises and the consequent negative effects on the development of the national economy. Here , we will focus on imports from abroad for products of all kinds, which are used to defeat the Iraqi economy and the weakness of his rival at home due to lack of protective laws that deter it in practice.
The basic premise of research for the paper is weak and the deterioration of government support for small and medium enterprises. And the resulting negative impact on the outcome of the development of national economy of Iraq.
Aim of the research: The research aims to shed light on the most important reasons for the deterioration of small and medium enterprises after the year 2003 and so far in terms of :
A statement identifying the real reasons that impede the development and evolution of these projects, depending on the scientific analysis determined by the methodology of this research.
Put forward practical solutions through long economic plans and medium term to ensure the achievement of a comprehensive economic development in the ongoing and continuous perceptions drawn by them.
Research Methodology: In order to achieve the desired objectives of this study and get to prove or deny the search hypothesis adopted in this research use deductive descriptive approach which is based on economic statistics methods and trying to figure out quantitative relationship between these variables together
Importance of the study :
The importance of the role played and played by small and medium enterprises in the development of the Iraqi national economy to increase employment and reduce poverty and raise economic growth rates, economic well-known axiom, do not wear them and do not need to talk even decide to accept it or reject it. The importance of these projects are well-known in the economies of all developed countries, and that many of the developing countries in Asia, Africa and Latin America succeeded in achieving high rates of economic growth and sustained periods so that relied heavily on these projects. But the difference may lie in the importance of providing the basic conditions for the success of these projects and their durability. It is no matter how small, does not arise from a vacuum or urgent political decision or provide funding only. The latter alone, as happened and is still happening in some countries, encourages adventurers to embark on projects that lack the minimum ingredients for success. The adventure ends the failure of the project and the inability of the debtor to pay the amount of funding and waste. The same applies to the urgent political decisions which are exempt from customs duties or provide raw materials supported or speed up completion of the transactions.
Problem of the study:
Even small and medium enterprises to be successful and with continuity and achieve the desired goals, they need to incubator provided with all the ingredients for success starting with the economic strategies, which is one of its priorities, and adopt necessary to implement fiscal and financial policies, and ending with the internal and external marketing (exports) for the products of these projects environment.
One of the most common mistakes in the economic policies of developing countries are adopting an integrated policy to achieve the goals planned, and not to adopt a package of policies complement each other so as not to emerge from the contradictory results, as happens in the event of non-integrated policies for all aspects.
To get an incubator for projects of small and medium-sized environment to succeed and continue to be of the following exist:
Government adopts to encourage small and medium enterprises as a first step in its strategy of economic. To achieve this priority is to adopt fiscal and monetary policies and trade and productivity complement each other, because the lack of adoption of such policies will be the results of these projects to encourage policy, such as the provision of funding and soft loans, unable to achieve their goals. As an example, the Central Bank of Iraq announced last year its intention to grant private banks to loan $ 5 billion to secure the financing of small and medium enterprises. But at the same time, the trade policy of the Iraqi government adopts an open-door style, where the Iraqi market is open to all types of import from all countries.
Organize compulsory training courses, in cooperation with international institutions for those wishing to establish small and medium enterprises, especially young people, to train them on how to start the project and the steps required for the selection of the successful project by preparing pre-feasibility study.
The establishment of a cabinet body is made up of organic ministries and relevant institutions such as planning, finance, trade, industry, agriculture, transport and Justice and the Central Bank and private banks, aimed at following up the implementation on promoting small and medium enterprises and propose dynamic processors of the difficulties faced by these projects policies.
Seeking to integrate small and medium enterprises with the activities of the industrial, agricultural and commercial activities of the national economy to ensure its success. This is the integration of the most important reasons for the success of such projects in developed countries.
Some encourage small and medium enterprises to link their activities to export markets through prior agreements with third parties.
In case of failure to provide these basics, attempts to encourage small and medium enterprises in Iraq going round in circles remain.
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