Abstract
The small projects are considered as projects of economic and social importance, they are complementary projects to a large number of large projects in various economic sectors, as well as they address the problems that the large-scale industries couldn’t overcome, the problems are in two major aspects: tackling unemployment as the small projects contribute to the reduction of unemployment by providing work opportunities, continuously and at low cost when compared to large industries, and therefore they are to ease the burden on the government on that side. The second aspect is financial as it helps small businesses in the development of private sector's role in the national economy for limited role of the state (public sector) and thus reduce the capital expenditures of the national government, which means easing the financial burden on the general budget of the government, can also be directed these funds surplus to support small projects financially, for a certain period of time according to the program of financial support and technical support for the establishment of these projects, and in coordination with the institutions and non-governmental bodies of the private sector. That small and medium enterprises in Iraq suffers from many problems, and the origin of these problems, often because of the weakness of the possibilities of those projects administratively, technically and financially, which makes them in need to someone to help them to face those problems, so it is necessary to think about the completion of certain regulatory requirements essential to help small and medium enterprises to cope with their problems, that these requirements are part of a comprehensive national program is to support those projects. As the regulatory framework for small and medium-sized non-specific as it does in Iraq, a specialized body to provide services to small and medium enterprises in an integrated manner to determine the investment opportunity and the process of the feasibility study and access to finance and access to the marketing process, but there are several points of providing services in general for all projects large and small and medium and is stopped short of ordering to the ambition, and these entities are: (Ministry of Labour and Social Affairs and the Ministry of Planning and Development Cooperation and the Ministry of Industry and the Ministry of Finance and Central Bank) and holds these entities supervision and the issuance of laws, regulations and instructions for projects and supervising the organization of the industrial sector in particular, and provide services and encouragement for the development of the industrial sector, It is also the focus of most of what only a matter of funding and the granting of loans and credit facilities are modest and unplanned and unstructured. This dispersion in the actors repeat that process to support small and medium enterprises so that there were not the actual and programmed plan for the development and support of these legislators in support of the national economy because of its great importance to and actively support the national economy. As part of facilitating access to finance for small and medium enterprises and development, trying to study the adoption of a goal with only a formulation of the system of financing to support contributes to facilitate the work of these projects, especially a dire need of money, including the establishment of a special device to support these projects in Iraq, including a special body Therefore, and the establishment of incubators have in addition to the company to market the products of small and medium enterprises, as well as setting up a fund financing it provides financial support and a mechanism to ensure the risk of loans granted to him and banks, also for these projects are more practical and more secure, and in order to develop and activate the role of small and medium enterprises, Recognizing the importance of the role played by these projects. This mechanism works on the other hand to encourage commercial banks to provide financing for small and medium enterprises, and to avoid the caution was Tltzmh banks towards these projects. On the other hand, to support small businesses need to take several legal proceedings, administrative and financial by the relevant authorities, and perhaps among those procedures established an independent body for the development of small enterprises and provide the necessary funding for the owners of small projects. And the participation of the banking system in facilitating the financing of these projects. A review of the levels of interest rates imposed on the banking and loans and advances granted to small enterprises. And to consider the possibility of setting up investment companies (mutual funds) to support small projects. The bearing part of the financial and technical support by the government. And encourage the creation of clusters of small enterprises in order to increase their competitive position and provide tax incentives to them.
