IOM Iraq Livelihood Policy Brief No.6 - SMES’ loan preferences and barriers findings among EDF-supported businesses

INTRODUCTION

Within community stability, income sources and livelihoods are crucial factors. As highlighted by the World Bank, smalland medium-sized enterprises (SMEs) make significant contributions to national income, accounting for up to 40 per cent of the gross domestic product (GDP) in emerging economies. In Iraq, SMEs form the majority of businesses and serve as essential income sources. The International Finance Corporation (IFC) reports over 1 million SMEs in Iraq, constituting more than two thirds of the private sector (IFC, 2016).