Economic researcher: small businesses raise the contribution to GDP 12-7

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Economic researcher: small businesses raise the contribution to GDP

8/12/2016 0:00

BAGHDAD / Mustafa Hashimi
plays enterprises or small and medium enterprises a vital role in the economy supply the large projects being processed and complementary pre - requisites would raise the efficiency and quality of production , but the growth in the country faces challenges in funding and aspects of the requirements and regulatory.

Sees economic researcher verse just need to develop the legal business environment, infrastructure, organization, thus contributing to the activation of the role of such projects or institutions in the economy of Iraq.

She added in an interview with "morning" that these projects or institutions account for about 90 percent of business enterprises, contribute about 33 percent of gross domestic product and more than half of exports in economically stable countries.

It showed that the size of these projects and the lack of development of the capital markets have limited the access to financing through bonds or stocks, and the provision of funding through banks requires less collateral scored Maigal about it, what a hindrance for small and medium entrepreneurs on funding through this channel for the purpose of developing its production and expand its activities.

Providing funding and explained just need to provide funding at a reasonable cost for these projects or even institutions grow and give impetus to the private sector to greater prosperity.

And it found that the local government institutions , partnership with the private sector will undoubtedly provide the necessary expertise for the development and capacity building for small and medium enterprises.

The small and medium enterprises have an incentive to develop financing products for banks to suit their needs, in addition to its ability to provide employment opportunities.

Economic growth of just and pointed out that the professionalism of the number of entrepreneurs, flexibility and responsiveness to changes give further impetus to economic growth in Iraq, and that the job opportunities offered by these projects working to improve the lives of people in developing and developed countries alike level, as it 's able to absorb a rate of about 70 percent almost of the total workforce in the country. " The private sector is facing many challenges , perhaps the most notable energy and security , but he is able to take the initiative if it is allowed government support to enact new legislation suited to the current stage accompanied by a glance to the future prospects of a positive."

Stimulate innovation and made it clear that the Iraqi private sector has much capital it is important to factor in job creation, in addition to that the private sector has the productivity of plants being able to find 9 out of every 10 jobs.

And just hinted that the private sector can stimulate innovation because it is free of bureaucracy and red tape , unlike the government sector sagging, confirming its ability to produce goods needed to improve the living conditions of the people and achieve their revenue and services.

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