Re-classification of Small Industrial Enterprises as An Approach to the Development of ‎the Small Business Sector in Iraq

Abstract

Objectives: This study aims to analyze the impact of the reclassification of small industrial enterprises on the development of the small business sector in Iraq. It seeks to identify the current gaps in the current classification system and propose a new framework that considers the challenges facing these enterprises and contributes to enhancing their competitiveness. Methods: The study adopted the inductive approach to prove the importance of reclassifying industrial projects in Iraq and developing the industrial sector. The clarity of the nature of the industrial structure and its classifications according to a new perspective of classifying the project sizes of the industrial sector is an entry point for the reform of the private industrial sector. Results: The study found that the applied classification of industrial projects, whether small or medium, is not compatible with what is prevailing internationally by adopting it only within small and micro enterprises, which led to a weakness in the industrial performance of the private sector compared to its counterpart in neighboring countries and globally. Conclusion: The reclassification of small industrial enterprises represents a decisive step towards the development of the small business sector in Iraq. It contributes to creating a more sustainable business environment as well as contributing to coordination between the private sector and financial institutions under government supervision and support to attract private sector investments inside the country.