#GrowingProspects – Part 1: Supporting small businesses, boosting local products
After years of conflict, the security situation in Iraq has significantly improved in the past couple of years. The economic situation is still challenging for many people: Businesses have not yet been rebuilt and thus cannot offer jobs to jobseekers. The situation is becoming more challenging as more and more youth enter the job market eager to make a living. Furthermore, increasing prices hinder economic growth. This impacts displaced Iraqis, some of whom still live in camps, and host communities alike.
Since 2017, GIZ has supported micro, small and medium-sized enterprises to start up, scale up and reactivate their businesses through business grants and non-financial support such as training, coaching and mentoring. Thus, people looking for a job can create employment prospects for themselves. In addition to that, businesses can hire staff offering income opportunities to them.
One of the entrepreneurs is Jalal Kareem, the owner of Bahar Factory, a small manufacturing business that produces vinegar and natural oil in Sulaymaniyah, the Kurdistan Region of Iraq. In 2018, a nutritionist was looking for locally made cosmetic natural oils to prescribe to his clients. He shared his situation with Jalal who suggested manufacturing high-quality natural oils locally. In the beginning, Jalal produced smaller quantities of natural oil at home and a makeshift workshop. Gradually, customer demand kept growing and Jalal could not keep up with producing the required amounts of natural oil desired by consumers.
With a 4,500,000 Iraqi Dinar (about 3,000 US Dollar) grant, Jalal was able to scale up his business by purchasing two oil compressor machines that significantly boosted its natural oil output. Thus, he increased his production from less than 10 kinds of oil to 70. With the financial support, he could hire two more employees, totaling 12 persons now, including women and persons who had to relocate to Sulaymaniyah because of conflicts in their home communities.
“The change was essential and fundamental. We could fill the gap that existed between our business and the market,” Jalal says. The financial support, he adds, has made Bahar Factory competitive in the market for locally made products by increasing product variety and volumes.
While GIZ continues supporting entrepeneurs to boost long-term economic growth and job opportunities, it now also focuses on working with governmental partners to work towards inclusive labor market policies.
