Small and Medium Enterprises Survey Analysis
Comprehensive Study of Business Sector Needs and Challenges
October 2025 - 90 Participating Companies
Survey Overview
90
Participating Companies
15
Different Business Sectors
93%
Cooperation Readiness (BBW)
Geographic Distribution of Participating Companies
67% of participating companies are from Baghdad, while 33% are from Basra, indicating a concentration in the capital but strong representation from southern regions
Business Activity Types Distribution
- Commercial sector represents the largest share with 47 companies (52%)
- Industrial sector is strong with 24 companies (27% representation)
- Services sector represents 20 companies (22%)
- Good diversity across 15 different business sectors and sub-sectors
Chamber of Commerce Membership Status
35%
Current Members (32 companies)
57%
Non-Members (51 companies)
8%
Former Members (7 companies)
Key Insight on Membership
While only 35% of companies are current Chamber members, the majority (57%) are not members, suggesting significant potential for membership growth and engagement among non-members who could benefit from Chamber services.
Training and Funding Status
44%
Participated in Training Programs (40 companies)
56%
Did Not Participate (50 companies)
20%
Received Funding (18 companies)
80%
Did Not Receive Funding (72 companies)
Critical Gap: While 44% participated in training, the vast majority (80%) have not accessed funding. This indicates that training access is slightly better but funding remains a major bottleneck for business growth.
International Expansion Interest
Have Current Expansion Plans
22% (20 companies)
Interested in Expansion (No Plans Yet)
48% (43 companies)
Focus on Local Market Only
14% (13 companies)
Uncertain About Expansion
16% (14 companies)
70% of companies show interest in international expansion (22% with plans + 48% interested), demonstrating strong growth ambitions but indicating a need for support and qualification programs.
Main Challenges Facing Companies
- 64% of companies identify funding as their primary challenge (58 out of 90)
- 49% struggle with marketing and customer reach (44 companies)
- 38% face legal and tax regulation challenges (34 companies)
- Infrastructure, bureaucracy, and skills gaps are secondary concerns affecting 23-29% each
Required Support and Services
- 66% of companies request funding support (59 companies)
- 43% need training and capacity building (39 companies)
- 38% require product development assistance (34 companies)
- Market expansion and digital transformation support are needed by 34-38% each
Membership Motivation Analysis
Business Requirements (Primary Motivation)
Most current members joined due to business requirements, highlighting the transactional nature of membership. This suggests an opportunity to develop value-added services beyond compliance requirements to improve member retention and satisfaction.
Business Sector Distribution by City
Baghdad shows higher industrial representation (20 vs 4), reflecting the capital's manufacturing base. Both cities are dominated by commercial activity, suggesting strong retail and trading sectors across Iraq.
Training Impact on Expansion Ambitions
📚
Companies with Training
85%
Want to Expand Internationally
❌
Companies without Training
62%
Want to Expand Internationally
💡
23% Higher expansion interest among trained companies, demonstrating a strong positive correlation between capacity building and growth ambitions
Challenge to Support Needs Priority Matrix
Critical Priority
Funding
66%
High Need
Marketing Support
49%
Growing Need
Training & Capacity
43%
Important Need
Digital Transformation
33%
Strategic Implementation Priorities
- 🔴 Immediate: Establish accessible and flexible funding mechanisms
- 🟡 Short-term: Develop comprehensive marketing and sales support programs
- 🟢 Medium-term: Build capacity through training and mentoring
- ⚪ Long-term: Support digital transformation and technology adoption
Business Needs Intensity by Sector (Heatmap)
Commercial
85%
45%
75%
25%
Industrial
90%
20%
40%
15%
Key Pattern: Industrial sector shows highest funding needs (90%), commercial sector needs strong marketing support (75%), while services sector has the highest digital transformation requirements (70%). This data enables targeted sector-specific support programs.
Key Findings
-
93% of companies (84 out of 90) are ready to cooperate with the BBW project, demonstrating overwhelming commitment to development initiatives
-
Funding is the dominant challenge affecting 64% of companies, making it the single most critical barrier to growth
-
Training participation gap: 44% have participated in training but only 20% have accessed funding, showing uneven access to support services
-
70% expansion ambition: Combined 70% of companies show interest in international expansion, but most need qualification and support
-
Marketing challenge: 49% identify marketing as their second major challenge, affecting business growth and market reach
-
Training advantage: Companies with training show 23% higher expansion interest, proving the ROI of capacity building
-
Sector diversity: 15 different business sectors represented, requiring customized support strategies for each segment
Strategic Recommendations
1. Establish Accessible Funding Mechanisms
Create dedicated SME funds with flexible terms, simplified application procedures, and reduced collateral requirements. Given that 66% need funding support, this should be the highest priority initiative.
2. Expand and Diversify Training Programs
Increase training availability focusing on marketing, digital skills, and business management. Current participation rate of 44% should be increased to 70%+ through targeted outreach to non-participants.
3. Develop Sector-Specific Support Programs
Create tailored programs for commercial, industrial, and services sectors based on their distinct needs. Industrial needs funding prioritization, while services need digital transformation support.
4. Establish Export and Expansion Support
Given 70% expansion interest, create specialized programs for international market access, export logistics, legal compliance, and market research. This could unlock significant growth potential.
5. Create Integrated Digital Platform
Develop a centralized digital platform connecting companies with services, funding sources, mentors, and market opportunities. This will improve accessibility and service delivery efficiency.
Conclusion
This comprehensive survey of 90 SMEs reveals a dynamic business ecosystem facing critical challenges,
particularly funding access (affecting 64% of companies) and marketing effectiveness (49%).
However, the overwhelming 93% cooperation readiness and 70% expansion ambition demonstrate strong
entrepreneurial spirit and openness to development support.
Strategic investment in these enterprises through targeted funding programs (needed by 66%),
enhanced training (requested by 43%), and market expansion support (critical for 70% of growth-oriented companies)
will drive significant economic impact, job creation, and regional development in Iraq.
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