Fayeq Ali Ali
Accounting Department, Tishk International University, Erbil, Iraq
Email: [email protected]
DOI: 10.23918/ICABEP2019p20
(Full Paper)
Abstract
Small and medium-sized enterprises are strongly significance to the growth of the economy of all the developed nations. This current paper is to examine the impact of small and medium-sized enterprises on the growth of the Kurdistan Region economy. KRG has the opportunity of empowering SMEs in a way to help the public sector and create more opportunities for new ventures to boost the economy. But before fueling and powering there are numbers of obstacles to be addressed. The initial step of the establishment of any SMEs is the environment and mindset of people in term of self-motivation and innovative thinking. If the mindset of entrepreneurs has the mission and vision, ready of taking the risk, and ready to tackle their own idea, then the environment is ready and further steps should take place in structuring a better environment for entrepreneurs to operate and support to SMEs is the accessibility and availability of infrastructure, which could significantly affect SMEs execution, where provincial or local infrastructure might be undeveloped or immature, clarified that poor infrastructure which incorporates roads or highways, an insufficient supply of water, poor electric supply, and poor media telecommunication structure are barriers to SME development. Another initial step of support is by the government in financing the enterprises and mentoring them about financial literacy, which can foster the process and contribute to more employment and lower the risk of infant enterprises going bankrupt. Lastly, the motivational support by the government such as a reduction in the company registration fees, establishments of investment banks with high trust, competition based on the pool of idea, helping with less time to establish a business and building incubation centres will have the positive impact on the economic growth.
Keywords: SMEs, Economic Growth, Government Support, Motivation, Innovation and KRG.
ICABEP2019
International Conference on Accounting, Business, Economics and Politics
ISBN: 978-9922-9036-3-7
