The Role of Government Subsidies in Supporting Small Businesses in Iraq

Abstract

This study aims to analyze the role of government subsidies in supporting small enterprises in Iraq by examining the most important adopted policies, their implementation mechanisms, and their contribution to enhancing economic activity and achieving sustainable development. The study is based on the hypothesis that government subsidies constitute a key instrument for supporting small enterprises; however, their effectiveness is influenced by the institutional and administrative environment in which they are implemented.

The research adopts a descriptive-analytical approach to examine the reality of government subsidies through analyzing financial, funding, and regulatory policies directed at small enterprises, relying on official data and relevant economic reports. The study addresses various forms of government support, including direct financial subsidies, concessional loans, tax exemptions, and training and capacity-building programs, highlighting their role in enabling small enterprises to sustain and grow.

The study concludes with a set of findings and recommendations, emphasizing the necessity of developing an integrated institutional framework to support small enterprises, simplifying administrative procedures, enhancing transparency in granting subsidies, and adopting more flexible and targeted policies to maximize the impact of government subsidies and achieve economic development goals in Iraq.