Rapid Market Assessment Report Hamadanyia District, Ninewa Islamic Relief Worldwide, Iraq December 2019

Rapid Market Assessment Report Hamadanyia District, Ninewa Islamic Relief Worldwide, Iraq

December1 2019

ACKNOWLEDGEMENTS

Al-Mosul Center for Culture and Sciences (MCCS) thanks Islamic Relief Iraq team for their cooperation and support with this rapid market assessment in Sinjar and Al-Hamdaniya , Ninewa Iraq. In particular, we would like to recognize:

Akram Sadeq Ali Head of Programmes

Noor Khan Mengal Project Manager

Hawree Rasheed Project Coordinator

Field research would not have been possible without the participation of government representatives, Mosul Chamber of Commerce as well as the assistance of local residents from the project targeted areas who took part in the research as enumerators and participants.

The following individuals contributed to the field research and analysis undertaken for this research:

Al-Mosul Centre for Culture and Sciences (MCCS)

Ibrahim Adeeb Ibrahim Data analyst and report writer

Hammam Alchalabi Team Leader

Disclaimer:

This report was made possible by the financial support of the United Nations Development Programme’s (UNDP) Iraq Crisis Response and Resilience Programme (ICRRP) with generous funding from the Government of Japan through Islamic Relief Iraq (Agreement No. P/AM 204/19).

This report is not a legally binding document. The views expressed in this publication are those of the author(s) and does not reflect the views of any of the contributing partners, including those of the United Nations, including UNDP, or UN Member States. Any errors are the sole responsibility of the authors.

Reproduction is authorized provided the source is acknowledged. © Islamic Relief Iraq 2020

Table of content ACKNOWLEDGEMENTS ...... 2 Background ...... 5 List of Acronyms ...... 6 1. Executive summary ...... 7 1.1. Purpose and objective of Rapid Market Assessment (RMA) ...... 7 1.2. Abstract of Rapid Market Assessment (RMA) ...... 7 1.3. Methodology of Rapid Market Assessment (RMA) ...... 7 2. Al-Hamdaniya Dist...... 8 3. Social and Cultural Reality ...... 10 4. Economic Issues: ...... 11 5. Contribution of government and NGOs in rehabilitation and reconstruction :...... 11 6. Sectoral Orientations ...... 12 6.1. Production of Grains ...... 13 6.2. Livestock Production ...... 14 6.3. Other businesses ...... 14 7. Plan of Distributing Small and Medium Enterprises analysis (SME) (Supply and Demand) ...... 14 8. Needs Assessments ...... 15 8.1. Agricultural businesses ...... 16

8.2. LIVESTOCK AND POULTRY FARMING BUSINESSES ...... 16

8.3. SMALL AND MEDIUM ENTERPRISES (SME) ...... 16 9. Women participation in business/economic activities ...... 17 10. The Role of Chamber of Commerce and Industry (CCI) and Directorate of Agricultural in Ninewa (DoA): ...... 17 10.1. The Directorate of Agricultural in Ninewa (DoA): ...... 18 10.2. Mosul Chamber of Commerce and Industry (MCCI): ...... 18 10.3. Erbil Chamber of Commerce and Industry (ECCI): ...... 19 Recommendations ...... 20 1. Recommendations Related to the Type of Production Sector: ...... 20

1.1. RECOMMENDATIONS RELATED TO SMALL AND MEDIUM ENTERPRISES SME ...... 20

1.2. RECOMMENDATIONS RELATED TO AGRIBUSINESSES ...... 20

1.3. RECOMMENDATIONS RELATED TO LIVESTOCK AND POULTRY FARMING ...... 21 1.4. Recommendations for Mosul Chamber of Commerce & Industries (MCCI): ...... 21 1.5. Recommendations for the Directorate of Agriculture in Ninewa (DoA)...... 21 Individual interviews with Agricultural and Livestock Farmers in Hamdaniya Dist.: ...... 21 1. Products Information ...... 22

2. Input Information...... 22 3. Sales Outlets ...... 23 4. Source of Supply ...... 23 5. Credit ...... 24 6. Needs for businesses Development ...... 24

6.1. AVAILABLE ASSETS ...... 25

6.2. MAIN SUPPLIERS FOR DEVELOPMENT NEEDS ...... 25

6.3. DEVELOPMENT OBSTACLES ...... 25 7. Coordination with Multiple Bodies/Investors ...... 26

7.1. TRAINING: ...... 26

7.2. REGISTRATIONS: ...... 26

7.3. RESTRICTIONS...... 26 Market Survey Results ...... 27 1. Preliminary Survey Information: ...... 27

1.1. THE SIZE OF EACH RETAIL SHOP/STORE ...... 27 1.2. Types of Retail Shops/Stores ...... 27 Individual Interviews with Retail shops/stores owners ...... 28 1. Workers Information ...... 28 2. Goods Information ...... 28 3. Credit Information ...... 28 4. Needs Assessments ...... 28 4.1. Training ...... 30 4.2. Official Registration ...... 30 4.3. Work Restrictions ...... 30

Background

Founded in the UK in 1984 as an International Relief and Development Charity, Islamic Relief aims to alleviate the suffering of the world’s poorest people without discrimination. Islamic Relief is in Consultative status (category special) with the Economic and Social Council of the United Nations, signatory to the Code of Conduct of the International Red Cross and Red Crescent (since 1995) and to the Code of Conduct of People in Aid. Since 2002 Islamic Relief is a framework partner of ECHO (Islamic Relief (IR) operates in 42 countries

Islamic Relief began working in Iraq in 1997 and was one of the few international aid agencies that continued working there throughout military incursions and the invasion in 2003 with its Country Office in Erbil and currently functioning in Erbil, Baghdad, Anbar, Deyala, Dohuk, Ninewa , Salaheddin, Karbala, Kirkuk, and Sulaymaniya with several intervention such as Food Security, WASH, provision of NFIs, Health, Livelihood, Education, Gender Based Violence (GBV), and Sexual Gender Based Violence (SGBV) child welfare, protection, early recovery, seasonal projects (Ramadan and Qurbani distribution).

IR Iraq is implementing a livelihood project with the financial support of the United Nations Development Program’s (UNDP) Iraq Crisis Response and Resilience Program (ICRRP) to support for Recovery and Resilience Building in Hamdaniya and Sinjar Dist., Ninewa governorate, Iraq. The project mainly focusses on Creating sustainable income opportunities and employment, particularly for the returnees, vulnerable host communities, focusing on youth and women, as well as strengthening the capacity of national institutions will be one of the key drivers of smooth recovery and resilience building.

Islamic Relief began working in Iraq in 1997 and was one of the few international aid agencies that continued working there in 2003. Our major priority is to provide much-needed emergency support for displaced people, returnees, host communities and refugees in Anbar, Fallujah, Baghdad, Mosul, Kirkuk, Ninewa, Salaheddin, Dohuk, and around Erbil. We also help people to get back on their feet- with more long-term development where it is safe to do so.

List of Acronyms Ad. Advertisement AVSI AVSI Foundation (AVSI) CCI Chamber of Commerce & Industries Dist. Distract DoA Directorate of Agriculture ECCI Erbil Chamber of Commerce & Industries ECHO European Commission Humanitarian Aid Elec. Electronic FGD Focus Group Discussion GBV Gender Based Violence ICRRP Iraq Crisis Response and Resilience Program RMA Rapid Market Assessment IOM International Organization for Migration IQD Iraqi Dinar INGO International Non-Governmental Organization IR Islamic Relief ISIS Islamic State in Iraq and Syria IT Information Technology KII Key Information Interview MCCI Mosul Chamber of Commerce & Industries MCCS Mosul Center for Culture and Sciences NFI Non-Food Item NGO Non-Governmental Organization Pct. Percentages Sep. September SGBV Sexual Gender Based Violence SME Small and Medium enterprises Trans. Trans. UK United Kingdom UNDP United Nations Development Program VT Vocational Training WASH Water Sanitation And Hygiene

1. Executive summary

1.1. Purpose and objective of Rapid Market Assessment (RMA) The primary purpose of the rapid market assessment is to provide a sound footing for the proposed project implementation and design by clarifying current conditions, available opportunities, and risks. This assessment will also establish that the planned project approach and activities will address the development problem with targeted women, youths, communities, and Dist. with current project design. The assessment will allow an overview of the current status of beneficiaries in terms of participation in the economic and social life, improve access to services and social cohesion. This rapid market assessment will also increase the effectiveness of the projects and fend off the imprudent resource utilization at the planning and implementation stages. The assessment informs the project about women, youths, household profiles in targeted areas in order to evaluate the effectiveness of the intervention in targeted areas. Information obtained and recommendations will be used to enrich project intervention and the effectiveness of the strategies and activities planned.

1.2. Abstract of Rapid Market Assessment (RMA) RMA, in general, focused on evaluating the overall situation in Al-Hamdaniya Dist. with particular emphasis on economic reality within the Dist.. The evaluation of economic reality in Al-Hamdaniya focused on different subjects that included material and human needs in order to improve different production sectors by focusing on agriculture, livestock, poultry, and SME, in particular.

1.3. Methodology of Rapid Market Assessment (RMA) Separate questionnaires have been developed to collect quantitative and qualitative data. FGDs were held with women and men from the affected population and of diverse ages and backgrounds. Further Individual Interviews with SME owners, community leader’s agriculture departments, mayors, CCI, and NGOs working in those areas. The selected instruments comprised: 1. Review of secondary sources (e.g., previous Assessments, Assessments form other INGOs) 2. The critical informant and stakeholder Survey Questionnaires 3. SME Survey Questionnaires 4. FGD with Community Members.

1.3.1. Quantitative data collection

The questionnaires employed for the Rapid Market Assessment survey were based on the developed tools. The tools used quantitative and qualitative methodology and are translated into Arabic language to facilitate the implementation. The survey was carried out using digital devices such as KOBO collect. The survey team worked with trained enumerators (50% female), to collect the quantitative data for SME (About 70 type of enterprises and businesses) and agribusinesses owners (Agriculture and livestock).

1.3.2. Qualitative data collection

The communities were consulted using a qualitative methodology. FGDs were held separately with men and women, and KII were held with mayors, Mukhtars, DoA, Chambers of Commerce & Industries, Other INGOs worked in the same fields and areas, and Community leaders. 1.3.3. Individual interviews Individual interviews were with business owners within sectors of agribusinesses and SMEs. 1. SME interviews 89 (Qaraqosh 34, Bartilla 35, Numroad 20) 2. Agribusinesses interviews 106 (Qaraqosh 28, Bartilla 30, Numroad 48) 1.3.4. Desk Review All quantitative and qualitative data were analyses using the KOBO toolbox and Microsoft Excel. Based on the raw data, available for download from KOBO Toolbox, a master database was developed, and data cleaning was carried out. A quantitative data framework was set up in Excel for all validated data. A series of frequencies count and other statistical methods were employed in the analysis of the data. Qualitative data have been collected and has been cleaned by the analysis team and been transferred to a standardized excel sheet to compare data of each location with others. 1.3.5. Key Information Interviews (KII) KII – Mukhtars, mayors, sub-mayor, community leaders, (DoA), CCI, NGOs working in Hamdaniya Dist. (14 FGDs, 5 in Qaraqush, 2 in Bartilla and 7 in Numroad), Towns, Cities, and Villages. KII has been done through three different subjects (Security situation, Social and Cultural Reality, and Economic Issues).

1.3.6. Focus Group Discussion (FGD)

Separate FGDs were conducted with women and men residing (9 FGDs) in Hamdaniya Dist. (3 in Qaraqush, 4 in Bartilla and 2 in Numroad), Towns, Cities, and Villages. FGD included a minimum of 5 and a maximum of 20 participants and lasted about 60-90 minutes. FGD included discussions about business development within the different mentioned sectors above and work restrictions and job opportunities.

2. Al-Hamdaniya Dist.

Al-Hamdaniya is one of the Dist. affiliated with Ninewa governorate. It is located in the South East of Mosul city, and it consists of three main areas are Al-Hamdaniya Dist. centre, Bartilla, and Al- Numroad. The population of Al-Hamdaniya is about 216,154, according to the Ministry of Planning’s census for 2019. Al-Hamdaniya shapes a big part of what is called Ninewa Valley, which is famous for its agriculture and livestock businesses. This area was mainly supported by the Iraqi government for agriculture and livestock businesses before 2003 as it was the primary source for supplying significant parts of Iraq with wheat, barley in addition to livestock products like meat and milk during the economic blockade.

After 2003, Al-Hamdaniya and Ninewa Valley areas received meagre support from the Iraqi government, which led to a massive decrease in the agricultural and livestock products. Furthermore, importing goods and dairy products from foreign countries have also led to wakening the production process of local

8 products. The imported goods affected the local market massively due to low prices as compared with local product prices. A large number of the population of the judiciary was displaced after ISIS took control of Ninewa Governorate, and after liberation, the majority returned, as the number of returnees reached until 31/12/2019, according to IOM reports about 27,349 family, which equals to 164094 individuals in the various villages of the judiciary. As for the number of families who are still There are about 6,603 families displaced in the camps, equivalent to 39,618 individuals, according to IOM reports on 12/31/2019 as shown ، (in figures 1 and 2.(1

IRAQ - Ninewa Governorate - Al-Hamdaniya

Geographical Coordinates: 36° 16' 15" North, 43° 22' 39" East

1 International Organization for Migration IOM, IRAQ MISSION, Displacement Tracking Matrix | DTM, http://iraqdtm.iom.int/Downloads.aspx 9

Figure 1: Households Returnees in Al-Hamdaniya 5353

4060

1500 11001000 934 900 890 865 774 647 610 565 560 545 470 450 430 391 385 367

256 250 248 245 225 220 216 216 205 200 198 196 188 166 161 158 146 135 135 125 112

Kezkan

Wardak

Majediay

Qaraqosh

Karamless

QaraShour

AlakVillage

Tal Al-Laban

ShanfVillage

Tiba complex Tiba

Tarjlla Village

AsthihVillage

KhaznaTappa

BlawatVillage

SayyidHamad…

Shaqulivillage

Mnara Shabak…

Al-Adla Village

QaratabaArab…

KabarlyVillage

Bartallacenter

Kubaiba villageKubaiba

Ali Rash Ali Village

Badna 1 Villaga

QretakhVillage

Zahrar Khatoun…

IbrahimAlkhalil…

KnehashVillage

Kharabatsultan…

Bashbita Village

Tahrawa Village

Jlewkhanvillage

ShamsiatVillage

BazgirtanVillage

OmarVillageKan

BasakhrahVillage

QarqashahVillage

Al-Zahraacomplex

Muafaqiyahvillage

ShiekAmeer Village Al-ghadeer complexAl-ghadeer Al-SalamiyahVillage

Figur 2: IDPs Households in Al-Hamdaniya

3090

1250 1240 990 25 5 3

As Salamyiah Hasansham Khazer M1 Hasansham Al-Salamiyah Ibrahim Al-Adla Village 2 U3 U2 Village Alkhalil Village

3. Social and Cultural Reality Al-Hamdaniya is well known for its culture and social harmony. People from different ethnicities and religions all live together within the small area of Al-Hamdaniya. Arabs, Kurds, Armani, Shabak, Sunni and Shiite Muslims, and Christians all coexist in harmony and peace. When IS took over the city of Mosul, their aim was mainly to target Christians and Shabak through confiscating their properties and lands in addition to forcing them to leave the city. However, IS agendas were all fallen apart after the liberation of Mosul, and now the coexistence is back to Mosul and Al- Hamdaniya stronger than it was before. Right now, Al-Hamdaniya Dist. is witnessing a massive reconstruction and rehabilitation campaigns as a result of political and security stability within the area. Development and reconstruction campaigns are having a significant effect on bringing back displaced people to their homes again as soon as possible. Reconstruction campaigns are being done through international and local NGOs who are very welcomed by locals to work there. Females face cultural and social constraints that hinder their contribution to the process of economic development. Females have responsibilities to care for children and the family and take care of home affairs. One study on work in Al-Hamdaniya Dist. showed that 72% of the interviewed women described themselves as housewives, and these responsibilities hinder their contribution to the labour market and 10 affect their enrolment in education, especially university education. The results of the interviews indicate that the percentage of women with university education is less than 20%, while the percentage of males with university education is 27%, the low level of female education and their preoccupation with domestic business reduces their contribution to economic life, as will be seen in subsequent paragraphs.

4. Economic Issues: The weakness of economic activities in Al-Hamdaniya is very noticeable due to the lack of human and financial resources. The lack of resources was a result of substantial losses in the owner’s capital when IS took over the area in 2014. Many of Al-Hamdaniya local people – specifically Christians and Shabak- lost their source of income like shops, lands, factories, and livestock. As for the lack of human resources is due to the internal and external displacement of local people to other cities and countries. Massive destruction of infrastructures such as roads, hospitals, bridges, and electricity stations as was very noticeable during IS and liberation time. After three years of liberation of Al-Hamdaniya, many local people are still afraid and refusing the idea of reuniting back due to the unstable economic situation. There are no available job opportunities to ordinary people who are not affiliated with the public sector, not employed within any governmental institutions. There is a massive lack of demand for local products within Al-Hamdaniya due to low source of income. Investors are still reluctant to invest huge amounts of money on different agricultural and livestock businesses due to the fear of the unstable security situation. For instance, there are about only 14 poultry farming unit functioning, in Bartella, out of 54. Moreover, there is about 40 agricultural fields need for full or partial rehabilitation to start functioning again. Economic hardships, in Al-Hamdaniya, may force its local to migrate again, but this time to look for a better source of income. In addition to the challenges of the economic reality, some groups face additional challenges, such as females, where social restrictions are imposed on their areas of work represented by their responsibilities inside the home and in the care of children. While the percentage of SMEs that employ males is 54%, as reflected in the level of their education whereas the percentage of females holding a number of university degree from SMEs owners or agricultural and livestock and chicken works does not exceed 25%, while this percentage reaches concerning males about 28%, and this reduces the chances of female in securing a source of income for their livelihood continuously increases economic dependence for males.

5. Contribution of government and NGOs in rehabilitation and reconstruction : Local government's role, after the liberation of Al-Hamdaniya, was only limited to security in addition to some rehabilitation done to leading governmental agencies and offices in order to function again and provide locals with services like water and electricity. Some agricultural agencies grant a license to farmers in return for 100,000 -150,000 IQD per year. Farmer license may help farmers to get financial support from the local government. It is also has been noticed that there is no financial support provided by the government since 2014. As for livestock and poultry keepers, most of them are registered with the Veterinary Department, which supplies them with vaccines and concentrated feeds according to health standards, but the prices of these feeds are very high for some livestock and poultry farmers who prefer to buy feed ingredients from the market and install it themselves.

As for the primary role of NGOs, their support was limited only to reconstruction and rehabilitation of schools and houses in addition to some humanitarian relief projects. In the case of NGOs support to farmers, there was less support provided by NGOs to different agricultural and livestock businesses, and it was limited to a number of NGOs like AVSI. AVSI, an Italian NGO, has supported farmers of agriculture and livestock in Qaraqosh (Dist. centre of Al-Hamdaniya ) for the duration Sep. 2018 to Sep 2019. AVSI supplied ten poultry farming units with vaccines in addition to rehabilitating some wills, electricity, providing water, and storages. Moreover, AVSI was eager to provide 22 orchards with generators, irrigation systems, greenhouses, storages, fertilizers, and pesticides. AVSI worked on providing about 28 livestock farmers with ten cows, each with vaccines, fodders, and veterinary services. About 22 sheep farmers were provided with 50 sheep each. AVSI established Farmers Association to support and follow up with farmers who are working on their agricultural and livestock products. 6. Sectoral Orientations Agricultural and livestock farming is considered an Figure 3: Relative Importance of essential source for an economy in Al-Hamdaniya. Two Agricultural Sales Outlets types of assets could affect local productions directly. 2% All available natural resources like water, lands, and Near Villages 11% weather Agricultural governmental institutions also Near Districts 36% provide fertilizers, vaccines, feed, and necessary Near Areas medical services, in addition to providing many of them 33% commercially in the market according to the market Near Governorates prices shown in the appendix in addition to human 18% Far Governorates capital is considered ,valuable asset for agricultural and livestock productions. Poultry farming, beekeeping, and small retail stores are considered to be fewer exciting businesses within Al-Hamdaniya. On the other hand, there are several obstacles facing these Figure 4: Relative Importance of Livestock sectors, including those related to outlets selling crops Sales Outlets and animal products that are concentrated in the borders of one governorate or nearby governorates, and only a 19% small amount goes to distant governorates, as there is no Near Villages 44% export of crops and animal products, so production goes Near Districts to meat consumption This can be seen in Figures (3) and 21% Near Areas Near Governorates (4)2. 16%

1 for more information lock at tables (6) & (7) 12

Among them, it is related to poor access to credit, as Figure 5: Relative Importance of 76% of farmers and 67% of livestock and poultry Development Obstacles for Agriculture keepers are unable to obtain financing and credit Sectors services, 71% of farmers, and 67% of livestock and 2% 4% Lack of Market poultry farmers do not have access to credit purchase 8% Knowledge services from Their suppliers with work materials, Lack of Suitable which are high rates compared to what was the situation Places before 2014, as 65% of farmers and 54% of livestock Lack of Investment and poultry keepers were not able to obtain future Lack of Working purchase services from suppliers, in contrast, 61% of 86% Tools farmers and 67% of breeders Livestock and poultry do not sell futures to their clients at present, while the Figure 6: Relative Importance of proportion of farmers was bitter Livestock and poultry Development Obstacles for Livestock who do not sell for the period between 63% and 54%, 1% Sectors respectively, before 2014. Farmers also suffer from 2% Weak Trading 7% 2% funding, lack of appropriate work tools, poor Trans., and Relations Figures (5) and (6) illustrate the relative importance of Lack of Suitable each of these handicaps. The security concern and the Places Market Distance proliferation of some armed factions constitute a significant impediment to the movement of people and Lack of Working goods and negatively affect economic activity. 88% Tools Lack of Investment As for SMEs, about 90% are between small and tiny enterprises, 83% of which rely on personal capital, and they face a lack of funding and a lack of training. With regard to females, their low contribution to the economic activity has been marked, as the number of females engaging in economic activity within the SMEs sector does not exceed 21% compared to the number of males, while in the agricultural, livestock and poultry sectors, the female contribution does not exceed 1% compared to males, as this activity was limited In limited fields, it does not exceed 27% of the male work fields. Among the most prominent female work areas that have been documented are the sale of sweets, food, clothing, pastries, stationery, pharmacy, and shaving, as well as work in agriculture, livestock, and poultry. It is also noted that the percentage of registering SMEs and raising livestock and poultry in government and semi-government institutions is 6%, and the percentage of recipients of VT in the SMEs sector training is about 25%, and all females in the SMEs sector are looking to develop their businesses, and most of them have capital Or the land, or both, needed to achieve the targeted development, and most of them need the tools of work necessary to develop. In the agriculture and livestock sector, most females see that they need financing and have sufficient experience to develop their businesses and that 57% of SMEs that They have seen the female staff and female, male staff at rates close.

6.1. Production of Grains

Grains, wheat, and barley are the most essential agricultural outputs in Al-Hamdaniya due to its high demand and a high source of income. Grain cultivation costs farmers of much money. Farmers are forced to invest all of their capital or share capital with other investors. Those who do not own agricultural land and have investment activities in non-agricultural fields and want seasonal investment in agriculture to achieve quick returns in land investment in order to cultivate grains, the cultivation process of grains, are divided as the following according to Individual Interviews with farmers. First, the land cost for one season of cultivation is about 3,930,000 IQD. Second, the cost of the machines and tools is about 2,462,000 IQD. Third, the cost of irrigation systems for one land is about 1,390,000 IQD per season. Forth, the cost of seeds, fertilizer, and pesticides is about 4,000,000 IQD for seeds, 3,000,000 IQD for fertilizers, and 560,000 IQD for pesticides. Fifth, the cost of labours, tractors, and Trans. is about 920,000 for labours, 1,270,000 IQD for tractor drivers, and 1,120,000 IQD for Trans. fees. Sixth, the cost of bush combat is about 580,000 IQD per season. According to Individual Interviews with multiple farmers, the total average cost for one season of cultivation, which includes the cost of land, seeds, machines, fertilizers, and pesticides, is about 20,128,000 IQD. The value of the agricultural land output in the year 2019, which witnessed heavy rains, ranged between 4-6 times the production costs, and there are some cases, the returns exceeded ten times the value of production cost. 6.2. Livestock Production Livestock, sheep, and cows are considered an important source for different kinds of animal products. Sheep, cows, and goats are all raised in order to produce red meat and dairy products like milk. Livestock barns cost a huge amount of cash for raising animals like sheep and cows. Each barn cost about 3,500,000 IQD as a fixed asset. While the cost of cattle, sheep, and cows is about 16,288,000 and 10,662,000, respectively. Also, the fodder cost is about 5,600,000 IQD in addition to medicine and vaccine services, which cost about 2,220,000 IQD. The governmental veterinary department is providing vaccines and fodder concentrated for healthy proportions. The cost of labour and Trans. fees is about 1,650,000 IQD and 1,350,000 IQD, respectively. Health care cost is about 1,130,000 IQD. According to Individual Interviews results with livestock farmers, the overall total cost for livestock per season, which includes the cost of vaccine and fodders, is about 28,200,000 IQD for cows and 21,350,000 IQD for sheep. The profit rate is between 30% - 50% of the total cost. 6.3. Other businesses Some other businesses have less significance as compared with livestock (cows and sheep) and agriculture ( grains and wheat)farming businesses. They are varied between field businesses and retail stores. Field businesses include poultry farming, beekeeping, and vegetable and fruit groves. It is difficult to determine the fixed total cost for field businesses as they are not related to the same cost of agriculture and livestock businesses Small retail stores businesses include restaurants, bookstores, and other types of services and trading stores. The total fixed cost of small retail businesses is about 4,850,000 IQD per month, according to Individual Interviews with shop owners. Small retail shops and field businesses are providing Al-Hamdaniya with multiple types of goods and items, and they require a substantial financial and logistic support from the local government and NGOs in order to keep them on the right track.

7. Plan of Distributing Small and Medium Enterprises analysis (SME) (Supply and Demand)

The primary market of Al-Hamdaniya is located in Figure 7: Number of Retail Shops the areas of Qaraqosh (Dist. Centre) and Bartella (as 377 shown in Figure 7). Small and tiny enterprises form 400 90% of the primary market in addition to some 200 124 medium retail stores in size. While too big and big 20 0 retail stores are scarce to be found within Al- District Hamdaniya (as shown in Figure 8). Bartilla Centre Numroad Medium and small retail stores are varied between 70 types, but there are only seven types of these Figure 8: Retail Shops in Accordance with The enterprises that form 50% of the primary market in Size Al-Hamdaniya such as clothing stores, foodstuff 3% 1% 6% very Small stores, electrical devices stores, barbershops, Small construction materials stores, restaurants, and Medium accessories stores (as shown in table 17). 32% 58% Large About 60% of the processed goods in Al-Hamdaniya primary market are coming through nearest very Large governorate centres (as shown in Figure 9). The processed items/goods are all being brought to locals Figure 9: Sources of Supplying Goods within the Dist. or village. In terms of capital investment, 90% of retail shop owners in Al- Outside the Country 4% Hamdaniya depend on self-support through investing 9% 8% Far Governorate Centres their own capital within the enterprises itself. 12% Near Governorate 11% Proceeding goods/items are all done in cash as there Centres is about 23% who could proceed goods in credit Nearest Districts Centres purchase (purchase in debt). However, there are about Nearest Sub- 38% of retail shop owners, in Al-Hamdaniya, allow 56% Districts their clients to buy items and goods in debt. Price Nearest Villages competition is the only source that could affect the process of selling goods/items, in Al-Hamdaniya , for SMEs. About 35% of retail stores are subjected to price competition with other stores within the same area. In general, the demand for buying goods is deficient, as about 89% of retail shop owners have number of sales of 36 each per day. Furthermore, the number of sales goes down to about 14 per day in 35% of the enterprise. The weak demand reflects the low purchasing power of consumers in the judiciary because of their low incomes and also because of the small total size of the population if a large proportion of the population still does not return to their homes and businesses.

8. Needs Assessments

Needs for each business are differed according to its type and size. Different business patterns are discussed below. 8.1. Agricultural businesses

Agricultural businesses need vary per the type of cultivation which represented by one seasonal and multi- seasonal cultivation. One seasonal cultivation can only be performed during one time of the year, such as grains while multi-seasonal cultivations can be performed through multiple times of the year, such as greenhouses.

8.1.1. One Seasonal Cultivation

Grain farming is an essential type of seasonal seeds which can be cultivated only during one time of the year. Grains cultivation requires a massive amount of investment in capital and significant lands as compared with other corps. Factors that could affect the cultivation of grains are the constant change in weather, marketing, and storage. Grains farming is considered to be significant due to high food security, which can be provided through its cultivation besides to being a high source of income to farmers.

Grain farmers need to depend on financial support to provide agricultural inputs such as seeds, fertilizers, and pesticides, which shape about 62% of the overall cost of the total production, according to Individual Interviews results. Grain cultivation starts from the mid of November till mid of January of each production season.

8.1.2. Multi Seasonal Cultivation

Greenhouses farming represents a big portion of multi-seasonal farming, even though it is not used regularly by farmers due to the lack of experience. Greenhouses farming requires a high level of investment in both financial and human capital. Multiple studies indicated that there is a desire for some locals in Qaraqosh and Al-Hamdaniya Dist. centre to bring back greenhouses farming again to the area.

8.2. LIVESTOCK AND POULTRY FARMING BUSINESSES

Livestock farming receives great attention from local farmers in Al-Hamdaniya . Raising cows and sheep has a big portion of livestock farming. Animals and fodders shape about 84% of the total cost of livestock farming according to Individual interview results. The type of fodders used is varied between wheat, corn, and barley. Also, livestock farming requires high levels of health care like medicine and vaccines.

Al-Hamdaniya area was well known for its poultry farming before 2003. Afterward, poultry farming businesses became very low due to lack of governmental support that represented by lack of fodders, vaccines, and medicine. However, local farmers are, now, working restoring poultry farming as it was before 2003 due to its importance in providing white meat and eggs. Although there is a high local demand for the products of these businesses, they need government support in providing production, training, and product marketing requirements, but this support after 2003 was weak, in addition to external competition for the local product, which led to the deterioration of such businesses.

8.3. SMALL AND MEDIUM ENTERPRISES (SME)

SME owners are always looking for different ways of expansion by increasing the number of goods and offering different services. Business expansion requires two main vital factors represented by financial and 16 human capital. In terms of capital investment, it can be divided into different types of factors such as an area of the shop, finical capital, goods, furniture, decoration, Trans., and working tools. On the other hand, human capital includes technical and management experience, market knowledge, trade relations, experience in marketing and advertisement, excellent competent in handling clients, and online communication.

There are different indications suggest huge weaknesses of human capital that most SME owners suffer from. The first indication is the educational attainment. Collected data shows that owners of SMEs have not had a good education. About only 20% of retail shop owners have got a bachelor's degree, while 37% have completed high school education. Moreover, about 40% have completed primary school, while 3% have not had any kind of education. The second indication is the level of training. About 19% only of business owners have received training within their specialization of work. The third indication is the lack of ambition to receive training. About only 9% of SME owners are willing to receive training within their specialization of work. The low turnout to training is due to the weakness of training income, limited training programs, lack of governmental support to the private sector, and preferring old fashioned ways in work.

The required subjects for training are evaluation of economic businesses, principles of accounting, marketing, trade relationships, and VT in addition to training on basic principles of management for SMEs. One of the critical aspects of developing SMEs is the availability of essential services such as maintenance, items/goods delivery, installation, and other services that could bring massive advantages to clients. Essential services could also increase the economic value of the business in addition to better investment in human capital. The ultimate goal of training and development of human capital is to increase the level of technical and management work besides to increasing labours source of income. As a result, investors and clients will have their own reasons to invest in different businesses or buy goods.

9. Women participation in business/economic activities

Females have been working and participating in multiple business activities such as beauty salons, retail stores (clothing, bookstore), pharmacies, and cosmetics. On the other hand, women who live in villages also participate in farming livestock and cultivation. Most of the females who work and got interviewed are married, so marriage is not a burden to prevent them from working.

Some places lack female workers like cafeterias and mechanic stores due to the hardships of lifting heavy weights, or most of the workers and clients are males.

10. The Role of Chamber of Commerce and Industry (CCI) and Directorate of Agricultural in Ninewa (DoA):

Governmental institutions specialized in professional aspects such as Chambers of Commerce and Industry and agricultural departments play an essential role in supporting economic activities. These institutions mainly collect information on various professional activities through data of registrants with 17 different professions. Also, institutions are an important source of information for government agencies and local and international organizations that want to support specific economic activities. Agricultural institutions can also enhance cooperation between various businesses and local productivity and build relationships with each other and with international agencies. The following are essential institutions that may serve different businesses and productivity in Al- Hamdaniya.

10.1. The Directorate of Agricultural in Ninewa (DoA): It is one of the formations of the Ministry of Agriculture and is responsible for providing extension services through the Agricultural Extension Department in cooperation and coordination with the Agricultural Cooperative Extension Centre in Ninewa, where a work plan is established at the beginning of each agricultural season. On the other hand, DoA holds several specialized extension seminars as well as on-field training for peasants and farmers in addition to specialized workshops for agricultural engineers and veterinarians working in the departments of the Ministry of Agriculture. It also supplies farmers with seeds and fertilizers according to the agricultural plan for each season, as well as agricultural equipment that would serve the agricultural reality in the governorate. DoA participates in international exhibitions in addition to participating in the Agriculture Week, which is held annually by the Ministry of Agriculture during the month of March. DoA has branches in various areas and Dist. in Hamdaniya. There is the Hamdaniya Agriculture Division and the Nimrod Agriculture Division. However, through interviews with farmers and livestock and poultry farmers, it was found that there are only 8% of farmers registered in an agricultural division, and only 2% of livestock and poultry farmers registered in a veterinary division, and registration fees varied between 100,000-150,000 IQD per 100 donums are paid according to type of activity.

10.2. Mosul Chamber of Commerce and Industry (MCCI): It is an economic organization that has a moral personality and financial and administrative independence and is represented by the Chairman of the Board of Directors (Chairman of the Chamber). Its main scope of activity is Ninewa Governorate under the umbrella of the Iraqi Chambers of Commerce, and it is concerned with organizing and developing private commercial activity. The Chamber provides consulting, economic studies, and commercial services to various government agencies in addition to its primary focus. They are affiliated with the private sector companies, which are about more than one thousand companies, in addition to more than twenty thousand traders distributed in various activities and specialties. Its headquarter is in Mosul in Al- Shurta Neighbourhood (the cultural area). MCCI provides the following services: issuing merchants' identities - issuing membership certificates - issuing certificates of origin - providing merchants with travel books to various countries - providing all official agencies with gold prices and foreign currencies based on their requests - granting two licenses - Providing the auctioneer with sale and purchase contracts as well as lease and rental contracts - Reserve commercial names for laboratories - Reserve trade names for pharmacies - Reservation of trade names for pharmacies - Reservation of trade names for restaurants - Reservation of commercial names for casinos and parks - Reservation of trade names for all commercial stores. Aside from these services, the Chamber carries out activities aimed at promoting internal and external commercial cooperation, such as holding exhibitions and forums and issuing introductory guides to various local companies. This institution can assist SMEs 18 in the Hamdaniya Dist. by strengthening cooperation between them and the local commercial companies in Ninewa Governorate or foreign companies, by disseminating information to introduce SMEs in the Dist., and holding exhibitions in the province to display the products and services of these businesses. However, the barrier to this is the failure to register most of the SMEs in MCCI. Of the 89 interviews with SME owners, only one case was documented in which the company was registered in CCI. Tax prosecution, lack of incentives, and some work restrictions have made it difficult to many farmers and SME owners to register in an official governmental institution.

10.3. Erbil Chamber of Commerce and Industry (ECCI): A professional economic organization that has a moral, administrative, and financial independence and is the true representative of its members and aims to organize and develop commercial and industrial affairs in the governorate of Erbil. It organizes records of the names of members belonging to the Chamber, issuing identities, representing merchants and industrialists in local and international economic forums, organizing training courses, signing cooperation agreements with its peers in other countries in order to develop commercial and administrative work, unifying the problems experienced by merchants and industrialists and collecting proposals to address them in coordination with the relevant bodies of government institutions. This institution can assist MCCI in developing its administrative capabilities to improve the level of services that it can provide to SMEs owners in the Hamdaniya Dist.

Recommendations According to interviews results with employees, SMEs owners, and agricultural and livestock farmers, the RMA team has concluded the following recommendations as mentioned below: 1- Development of human capital to guarantee a successful business 2- Achieving integration between all different agriculture and livestock sectors for SME. 3- Continuity of supporting agricultural activities 4- Providing job opportunities 5- Creating new business 6- Increase the value of local products 7- Increase of local market competition through local products 8- Working on exporting local products to foreign countries 1. Recommendations Related to the Type of Production Sector:

1.1. RECOMMENDATIONS RELATED TO SMALL AND MEDIUM ENTERPRISES SME 1- Development in human capital for different businesses within the following sectors: - Management, accounting, market evaluation, and marketing. - Vocational skills development - Development of computer skills - Development skills of banking 2- Supporting local businesses that meet the needs of locals in order to get full integration between local products and people. Some local products that require support are mentioned as follows: - Dairy products - Red and white meat - Tanneries that used leather products - Fertilizers factories 3- Supporting activities/services that have huge demand within the market, as mentioned below: - Fast food businesses - Pickles stores - Sweets stores 4- Supporting activities/ businesses that meet the needs of agricultural and livestock products, as mentioned below: - Maintenance shops for tools used in agriculture like tractors and sprayers - Retail stores used for selling greenhouses farming requirements - Retail stores used for selling fertilizers, pesticides, and medicine - Retail stores used for selling barns insulations 5- Supporting activities related to retail services, as mentioned below: - Food delivery services - Furniture installation services for homes and offices - Electrical machines installation services - Retail stores for cell phones maintenance and services - Sewing and tailor shops services 1.2. RECOMMENDATIONS RELATED TO AGRIBUSINESSES 1- Development of human capital for farmers through the following points: 20

- Development of agricultural planning skills for farmers - Supporting mentoring programs for farmers 2- Supporting the growth of some agricultural crops like cereal and wheat in areas that lack natural resources of water like rains through the following points: - Providing fertilizer, pesticides, and seeds during suitable times of cultivation - Providing agricultural lands with suitable irrigation systems through wells and sprayers - Providing a suitable amount of fuel to allow farmers to use their machines during cultivation and harvest times. 3- Supporting intensive farming which could bring many labours to work together at one time as mentioned below: - Providing mentoring programs regarding greenhouses farming - Providing seeds, fertilizers, and pesticides during the appropriate time of cultivation - Providing farmers with greenhouses - Providing water resources through irrigation systems and wells 4- Supporting cooperative activities that aim to provide agricultural needs in return of low financial value through establishing a cooperative society that could do the following tasks: - Buying agricultural machines and tools that could be rented to farmers in return of the low value of money during cultivation season - Providing low fees for transporting goods to the main markets. - Providing free health care services. 1.3. RECOMMENDATIONS RELATED TO LIVESTOCK AND POULTRY FARMING 1- Development of human capital for livestock and poultry farmers, as mentioned below: - Training on choosing a suitable way of raising animals - Training on extracting raw materials from livestock like milk, eggs, and wool. 2- Supporting farmers with cows, sheep, and chickens 3- Providing fodders, vaccines, and medicine 4- Rehabilitation of barns and fields to be valid for raising cattle and poultry 1.4. Recommendations for Mosul Chamber of Commerce & Industries (MCCI): 1- Providing training for MCCI staff in building local and international trade relations, organizing trade fairs, and promoting local products, and can benefit from the experiences of ECCI in setting up these training programs. 2- Requiring SMEs owners in the Hamdaniya Dist. to register in MCCI in exchange for support, and to cooperate with the CCI in facilitating registration procedures. 3- Requesting MCCI to support SMEs in Al-Hamdaniya Dist. by including them in the trade fairs organized by the Chamber. 1.5. Recommendations for the Directorate of Agriculture in Ninewa (DoA). 1- Cooperating with the branches of DoA in the Hamdaniya Dist. to implement extension programs for farmers in specific areas such as greenhouse agriculture. 2- Cooperate with DoA to involve farmers, livestock, and poultry farmers in exhibitions held by DoA. 3- Cooperate in facilitating the marketing of Agri output and protecting it from external competition.

Individual interviews with Agricultural and Livestock Farmers in Hamdaniya Dist.:

The purpose of this section is to evaluate the state of production within agricultural, livestock, and poultry farming sectors in Al-Hamdaniya Dist. About 106 production unit was chosen to conduct a personal interview with their owners/workers in order to get more info/explanation about the state of agricultural and livestock productions and poultry farming. Interviews covered questions about inputs, supplies, credit, needs and assets, training, registration, and restrictions. More details are given in the following sections. Dist. Dist. Centre Bartilla Numroad Total

Number of Interviews within the Agriculture Sector 14 8 29 51 Number of Interviews within the Livestock Sector 14 21 19 54 Table 1 Number of Interviews about The State of Agricultural and Livestock Production in Al-Hamdaniya Dist.

1. Products Information There are limited types of agricultural products that can be cultivated in Al-Hamdaniya Dist. Those products are grains, vegetables, fruits, legumes, and Roots. Agricultural Products Vegetables Fruits Grains Legume Roots Percentage 20% 4% 60% 9% 7% Table 2 Relative Importance of Agricultural Products According to Farmers In terms of livestock products, breeding sheep have been very popular among other types of cattle within Al-Hamdaniya Dist. About 40% of livestock products are coming through breeding sheep.

Hen

Beekeeping

Dairy cows cows Dairy

Livestock Livestock

Hatchery

Breeding Breeding Breeding

Products

products

attening Fodders

farming

Broiler

Calves Calves

Sheep

Dairy

Skins

Goat

Eggs

Fish

farming

Percentage 40% 22% 8% 7% 5% 5% 5% 2% 2% 1% 1% 1% 1% Table 3 Relative Importance of Livestock Products According to Farmers

- Furthermore, Interview results indicated that about 65% of agricultural farmers and 68% of livestock farmers said that they have only one season of production per year. The other 29% of agricultural farmers and 23% of livestock farmers said they have two seasons of production per year. Moreover, finally, about 6% of agricultural farmers and 9% of livestock farmers said they have three seasons of production per year. 2. Input Information There are different types of inputs for agriculture and livestock sectors. These inputs can be different per the types of business. The inputs are fixed assets, human resources, and raw materials. Through conducting multiple Interviews with agricultural and livestock farmers, results were shown important information about different inputs used within both agriculture and livestock sectors which explained as follows: - There are five main inputs for the agricultural production sector, which represented by land, machines, sprayers, wells, and greenhouses. Table 4 shows the importance of each input per their percentages from highest to lowest.

Fixed/Inputs Assets Agricultural land Tractors Wells Sprayers Pumps Greenhouses (Plough, Mowers) Percentage 48% 24% 9% 8% 8% 3% Table 4 Relative Importance of Fixed Assets in Al-Hamdaniya Dist. For livestock farmers, barns are considered the only significant input for livestock productions.

- Furthermore, some farmers insisted that seeds, fertilizers, and pesticides are considered one of the most important primary sources for agricultural products. - From farmers' point of view, daily paid workers are the most critical asset of the human resources, and after that comes tractors drivers, Transfer, Transfer, and finally Agricultural supervisor and health care. Human Resources Daily Paid Transfer Tractors Health Control of Agricultural Workers Drivers Care diseases supervisor Percentage Agricultural Sector 29% 20% 25% 4% 16% 6% Livestock Sector 39% 24% 10% 16% 6% 5%

Table 5 Relative Importance of Human Resources Types in Agriculture and Livestock Sectors From the livestock farmers' point of view, daily paid workers are also the most valuable asset of human resources in addition to Transfer. 3. Sales Outlets Agriculture and livestock sales outlet are mainly located in some areas within the city itself or nearest governorates/cities centres. There are no sales outlets for far governorates/cities centres, and also, there is no ability to export products outside the country. Instead, all the products are being consumed locally. Product Corps Grains Vegetables Fruits Roots Legume Total of Corps Products Near Villages 4% 2% 2% 1% 2% 11% Near Dist. 20% 8% 1% 2% 2% 33% Near Areas 5% 5% 2% 3% 3% 18% Near Governorates/Cities 28% 5% 0% 1% 2% 36% Far Governorates/Cities 2% 0% 0% 0% 0% 2%

Table 6 Relative Importance of Agricultural Sales Outlets in Al-Hamdaniya Dist.

Fish

Eggs

Hens

Total

Goats

Sheep

Honey

Calves

Broiler Yogurt

Fodder

Leather

Beehives

Products

Livestock

Production Dairy Cows

Near Villages 2% 1% 3% 1% 1% 1% 0% 1% 1% 1% 2% 0% 5% 0% 19% Near Dist. 3% 3% 4% 1% 1% 1% 1% 1% 1% 1% 1% 1% 2% 0% 21% Near Areas 1% 2% 3% 1% 1% 1% 0% 1% 1% 1% 1% 1% 2% 0% 16% Near Governorates/Cities 5% 6% 19% 1% 1% 1% 0% 1% 1% 2% 1% 1% 4% 1% 44% Far Governorates/Cities 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% Table 7 Relative Importance of Livestock Sales Outlets in Al-Hamdaniya Dist.

4. Source of Supply Most of the primary resources that agricultural and livestock farmers get, such as fixed assets, raw materials, or paid workers, are from the nearest areas, villages, or Dist. Mainly, human resources, like paid workers, are being recruited through the same or nearest villages. While raw materials can be taken

form nearest governorates/cities or Dist. centres.

Dist.

Centre

Far

Near

Centres Centres Centres

Sub

Resources

City Centre

Dist.

Governorate

Nearest

Governorates

Nearest Cities

Village Centre

Near Sub Nearest Villages

Machines 0% 6% 0% 3% 0% 0% 3% 6% 0% 81% Greenhouses 0% 0% 0% 50% 0% 0% 0% 0% 0% 0% Sprayers 0% 30% 0% 0% 10% 0% 0% 0% 10% 50% Seeds 0% 4% 15% 13% 33% 4% 6% 1% 6% 16% Fertilizers 0% 6% 10% 18% 51% 6% 4% 0% 2% 4% Pesticides 0% 8% 10% 16% 50% 4% 4% 0% 4% 4% Workers 0% 0% 0% 0% 0% 0% 0% 5% 0% 95% Tractors Drivers 0% 0% 0% 0% 0% 0% 0% 5% 0% 95% Health Care 0% 0% 0% 18% 9% 0% 9% 0% 0% 64% Bush and Diseases Combat 0% 0% 7% 4% 14% 0% 4% 0% 4% 68% Total Resources 0% 5% 7% 9% 24% 2% 3% 2% 3% 45%

Table 8 Relative Importance of Securing Main Sources for Agriculture Production in Al-Hamdaniya Dist.

Dist.

Centre

Governorate

Dist.

Centres Centres Centres

Resources

City Centre

Dist.

Nearest

Nearest Cities

Village Centre

Near Sub

Nearest Villages

Sub

Far Governorates Near

Cows 5% 14% 14% 9% 32% 18% 0% 0% 0% 5% Sheep 0% 3% 31% 8% 41% 8% 0% 3% 5% 3% Poultry 0% 11% 0% 22% 22% 22% 11% 0% 0% 11% Fodder 0% 19% 7% 11% 20% 7% 0% 7% 11% 17% Medicine and Vaccine 0% 16% 7% 19% 16% 5% 4% 16% 9% 9% Workers 0% 0% 0% 0% 0% 0% 3% 3% 10% 83% Maintenance 0% 0% 0% 0% 0% 0% 0% 0% 0% 100% Health Care 0% 0% 6% 6% 6% 0% 11% 11% 6% 56% Bushes and Diseases Combat 0% 0% 13% 7% 13% 0% 7% 13% 7% 40% Eggs 0% 0% 0% 0% 0% 0% 0% 0% 0% 1% Total Resources 0% 9% 10% 10% 19% 6% 3% 7% 7% 28% Table 9 Relative Importance in Securing Main Sources for Livestock Production in Al-Hamdaniya Dist. 5. Credit Interview results showed that about 76% of farmers and 67% of livestock farmers are not able to get funds or credit services. Also, about 71% of agricultural farmers and 67% of livestock farmers are not able to buy supplies for their businesses through credit purchase (purchase in installments) from their suppliers. While before 2014, there were about 65% of an agricultural farmer and 54% of livestock farmers could not get credit purchase services from their suppliers. However, about 61% of agricultural farmers and 67% of livestock farmers do not offer credit purchase (purchase in installments/debt) to their customers. While before 2014, there were about 63% of agricultural farmers and 54% of livestock farmers did not offer credit purchases to their customers.

6. Needs for businesses Development According to Interviews results, there are about 100% of agricultural farmers and 98% of livestock farmers are willing and planning to expand their own businesses in Al-Hamdaniya Dist.. Needs for business development can be determined through tables 10 to 26, as shown in the next sections.

Trans.

Needs Marketing and Advertisement Ways of Raw Materials Capital Land Space Building Decoration Tools Machines Furniture Goods Agriculture Sector 0% 2% 3% 29% 19% 7% 1% 0% 2% 32% 0% 5% Livestock Sector 0% 0% 3% 36% 5% 11% 11% 0% 0% 7% 0% 27% Table 10 Relative Importance of Needs for Agribusinesses Development in Al-Hamdaniya Dist. 6.1. AVAILABLE ASSETS The most critical assets for agricultural and livestock farmers are represented by good experience, invested capital, excellent

marketing skills, way of Trans.s, and proper agricultural land.

Trans.

Materials

AvailableAssets Modern Working Tools Suppliersfor Raw Good Customers Appropriate Ways of Market Knowledge Market GoodCapital Investment Land Goodexperience Agriculture Sector 1% 3% 9% 6% 12% 3% 2% 19% 45% Livestock Sector 0% 1% 14% 9% 14% 0% 1% 14% 47% Table 11 Relative Importance of Available Assets for Agribusinesses in Al-Hamdaniya Dist. 6.2. MAIN SUPPLIERS FOR DEVELOPMENT NEEDS Main suppliers for agricultural and livestock farmers are located within the nearest cities/governorates centres in addition

to the nearest villages or Dist..

Dist.

Centre

Dist.

Centre

Dist.

MainSuppliers for businesses Development Needs Far Governorates Centres Near Governorate Centres Nearest Centres Dist. Nearest Cities City Centre Near Sub Sub Nearest Villages Village Centre Agriculture Sector 2% 15% 10% 11% 44% 11% 3% 0% 2% 2% Livestock Sector 1% 28% 9% 9% 35% 12% 0% 2% 2% 2% Table 12 Relative Importance of Suppliers for Development Needs to Agribusinesses in Al-Hamdaniya Dist. 6.3. DEVELOPMENT OBSTACLES Lack of funding/investment is considered one of the most crucial development obstacles for agricultural and livestock farmers in addition to the lack of working tools and Trans. Table 13 shows important development obstacles per their percentages.

Trans.

Places

liences liences

Lack of Lack of Lack of

Relations

Obstacles

Knowledge Experience Investment

Development

WeakTrading

Lack of

Working Tools

Lack of Market

Lack of Official

Lack of Suitable Market Distance Agriculture Sector 0% 2% 4% 0% 0% 0% 8% 0% 86% Livestock Sector 1% 0% 7% 0% 0% 2% 2% 0% 88% Table 13 Relative Importance of Development Obstacles for Agribusinesses in Al-Hamdaniya Dist. 25

7. Coordination with Multiple Bodies/Investors Interviews results indicated that investors are the most crucial body/asset to coordinate with in order to develop businesses within agriculture and livestock sectors in addition to consumers and traders, as shown in table 14.

Coordination Bodies Sponsors Chambers Suppliers Single Wholesale Consumers of Trade of Raw Trade Trade and Materials Commerce Agriculture Sector 23% 0% 0% 12% 44% 21%

Livestock Sector 41% 0% 0% 17% 21% 21%

Table 14 Relative Importance of Coordinating with Multiple Bodies within Agriculture and Livestock Sectors in Al-Hamdaniya

7.1. TRAINING: According to Interviews results, agricultural and livestock farmers have not had any kind of training within their specialization of work. Also, none of the farmers are willing to have any kind of training any time soon.

7.2. REGISTRATIONS: Interview results showed that about 8% of agricultural farmers and 2% of livestock farmers are registered in governmental institutions in exchange for 200,000 IQD per year.

7.3. RESTRICTIONS There are about 78% of Agricultural farmers, and 74% of livestock farmers have no restrictions, according to Interviews results. However, there are about 14% of Agricultural farmers, and 9% of livestock farmers believe that there are restrictions on transporting goods, 8% of Agricultural farmers and 4% of livestock have restrictions on selling good and 6% of Agricultural farmers and 2% of livestock farmers have restrictions on purchasing goods.

Market Survey Results

A preliminary market survey was done first in order to evaluate SME within Al-Hamdaniya Dist.. The survey included/covered the main markets of sub-Dist./nearest areas affiliated with Al-Hamdaniya Dist.. The nearest areas that affiliated with Al-Hamdaniya are Qaraqosh (Dist. centre), Bartilla sub-Dist., and Numroad sub-Dist. (Khudhur and Salamiya villages). The number of retail shops/stores covered in the survey are 521 retail shop/store and distributed, as shown in table 15. Dist. Al-Hamdaniya Bartilla Numroad Number of Retail Shops/stores 377 124 20 Table 15 Covered Areas in the Preliminary Market Survey

1. Preliminary Survey Information:

1.1. THE SIZE OF EACH RETAIL SHOP/STORE The size of each retail shop was classified (according to the number of front columns for each shop) into five types: tiny (storefront with one column), small (storefront with 2 to 3 columns), medium (storefront with 4 to 5 columns), large (storefront with 5 to 6 columns), very large (Multi floors shop/store). Survey results indicated the following percentages per the size of each retail shop/store, as shown in table 16. Size very Small Small Medium Large very Large Percentage 58% 32% 6% 3% 1% Table 16 Retail Shops/Stores in Al-Hamdaniya Dist. per The Size 1.2. Types of Retail Shops/Stores Survey results showed that there are 66 different types of retail shops/stores and was represented by disproportionality, as shown in table 17. Type of business Pct. Type of business Pct. Type of business Pct. Type of business Pct. Clothing 11.11% Foodstuff 10.04% Pharmacy 2.51% musical store 0.18% Const. Materials 3.94% Electrical Devices 3.58% Pets Store 0.36% Pickle Shop 0.18% Restaurants 7.53% IT 0.90% Alcoholic drinks 1.08% Optical store 0.18% Toy Store 1.25% Cell Phones 0.90% Shoes Store 2.15% Dye shop 0.36% Furniture 0.72% Elc. Maintenance 0.72% Money Exchange 1.61% Decoration 0.18% Pastries 2.33% Sweets 1.97% Jewelry shop 2.15% Agricultural 0.18% services Bookstore 0.00% Sundae 0.72% Photocopy 2.15% Tahini sauce shop 0.18% Meat 2.51% Refreshments Store 0.90% Household products 0.36% Cosmetics 0.54% Carpentry 0.18% Arcade 0.36% Fruits & Vegetables 0.18% Veterinary 0.18% Real estates 1.08% Barbershop 7.89% spice dealer 1.08% Factories 0.36% Teaching Institute 0.18% Tailor shop 1.25% Medical Clinic 0.00% Sewer services 0.00% Tourism Office 0.54% Gym Hall 0.54% Internet services 1.25% Mattress store 0.18% Park 0.36% Cigarette Vendors 1.79% Glass services 0.36% Fuel 0.18% Plant Nurseries 0.54% Car’s Accessories 1.08% Fish 0.54% Consulting services 0.36% Shop Coffee shop 2.69% Stationery 1.79% Hen 0.18% Other 1.97% Curtains store 0.18% Car Maintenance 1.43% Trade & Contracting 0.90% Total 558 Fabric 1.25% Photography 1.61% Parties services 0.72% Accessories 2.87% Blacksmith 0.18% Gifts store 0.36% Table 17 Percentages of the type of Retail Shops/Stores in Al-Hamdaniya Dist.

Individual Interviews with Retail shops/stores owners

After the preliminary survey was done within the primary market of Al-Hamdaniya Dist., 89 of the retail shops/stores were chosen to conduct INTERVIEWS with their owners/workers in order to get more explanation/info about the state of the market in Al-Hamdaniya Dist.. The INTERVIEWS included questions about workers, goods, needs, training, registration, and restrictions. The number of INTERVIEWS conducted in each area is shown in table 18.

Dist. Al-Hamdaniya Bartilla Numroad Total Number of INTERVIEWS 34 35 20 89 Table 18 Number of INTERVIEWS in Evaluating SME in Al-Hamdaniya Dist.

1. Workers Information This section discussed/included info about the number of paid workers in each retail shop/store within the mentioned areas in table 4. Also, it covered the number of workers of males and females within each retail store, as shown in tables 19 and 20.

Number of Male Workers 0 1 2 3 4 5 Retail Shops/Stores Percentage 46% 27% 16% 6% 3% 2% Table 19 Number of Male Workers Per Retail Shop/Store Number Female Workers 0 1 2 3 Retail Shop/Store Percentage 90% 3% 6% 1% Table 20 Number of Female Worker Per Retail Shop/Store

The average working hours was estimated to be about 9 hours per day for six days per week. Also, most of the salaries were paid monthly to the workers. Furthermore, survey results showed the need for new workers in about 19% of the available businesses. However, most of the business owners prefer to employ male workers only, which makes the possibility for a female to get employed in a retail shop/store meager.

2. Goods Information This section covered the sources of supplying goods for retail shops/stores. Through INTERVIEWS, the following results were taken:

About 83% of the retail shops/stores are funded by personal capital, and only 17% of the retail shops/stores are funded through multiple investors (to supply goods).

There are multiple sources for supplying goods and represented by the nearest governorates/cities, the nearest Dist. centres, and far governorate centres. The least onthe dependent source for supplying goods is the nearest villages and sub-Dist.s. Also, there’s no importation for goods from outside the country, as shown in table 21.

Import Goods from Far Governorate Near Governorate Nearest Dist. Nearest Sub- Nearest Outside the Country Centres Centres Centres Dist. Villages 8% 12% 56% 11% 4% 9%

3. Credit Information Table 21 Sources of Supplying Goods in Al-Hamdaniya

This section covers the possibility of business owners in getting a credit purchase (purchase in instalments). Survey results indicated that about 22% of business owners were able to buy goods in credit purchase (purchase in instalments) through their suppliers. Also, the results show an increase in the percentage of buying goods in credit purchases than it was before 2014, which was about 18%. Moreover, there are about 34% of retail shops/stores owners allowed credit purchase (purchase in instalments) to their customers. This percentage is also much higher than it was before 2014, which was about 27%.

4. Needs Assessments

Surveys results showed that about 94% of the retail shops/stores owners are planning to expand their businesses through an increase in the invested capital, an increase in the goods supply, increase the size of the building, increase in the raw materials, buying modern tools for work, buying a land/machine, buying furniture, and marketing and advertisements. Table 22 shows the percentage of each field per their importance.

Land

Tools

Goods

Trans.

Types ofTypes

Area/Size Machines

Furniture

Expanding

Decoration

Experience

Raw Material

Marketing and

Advertisements Investing Capital Percentage 17% 17% 20% 3% 5% 2% 1% 13% 11% 4% 6% 3% Table 22 Type of Business Expansion According to Retail Shops/Stores Owners in Al-Hamdaniya

The available assets for the retail shops/stores owners to improve their business are through having a good experience, having good capital, excellent marketing skills, having right customers, having a suitable way for Trans., having modern working tools, having suppliers for raw materials, having good market knowledge, and owning a land. Table 23 indicate the percentages of the

available assets from high to low according to the retail shops/stores owners.

Trans.

Available Assets Experience Capital Marketing Skills GoodCustomers A suitableway of Modern Work Tools Land Suppliersof Raw Materials Market Knowledge Percentage 44% 3% 17% 11% 5% 4% 6% 2% 8% The Table 23 Most Important Available Assets to Improve Businesses According to Retail Shops/Stores Owners primary source for buying/supplying for modern tools/machines/goods is provided by the nearest cities/governorates and sub-Dist.s centres as represented by table 24.

Dist.

Nearest

Centres Centres

Materials

Sources of

Developing

Nearest

Near Villages

Supplying for

CitiesCentres

Governorates /

Outside Outside Country

Far Governorate

Nearest Sub Importationfrom Percentages 63% 10% 11% 5% 4% 7% Table 24 Sources of Supplying for Developing Materials in Al-Hamdaniya Retail shops/stores owners have mentioned that there are some restrictions on their business improvement plans. The restrictions are represented in table 25 along with their percentages from highest to lowest.

Trans.

al business

Other

license

Lack of

Business

relations

knowledge

Lack the in

Appropriate

Areas/Lands

Development

Lack of price

Lack of

Restrictions on

Working Tools

Lack of Market

Offici

Market Distance

Lack of not Having Lack of Investment Percentages 67% 7% 4% 11% 1% 2% 1% 1% 6%

Table 25Restrections on Business Development in Al-Hamdaniya Dist.

Retail shops/stores owners have mentioned some of the essential assets that can have a significant impact on their business improvement plans. Table 26 shows the essential assets along with their percentages from highest to lowest.

Focal Point Investors Consumers Suppliers of Wholesale Retail CCI Raw Trade Materials Percentages 14% 25% 3% 55% 2% 1%

Table 26 Important Focal Points to Assist in Business Development in Al-Hamdaniya

4.1. Training Lack of training is considered one of the weakest points that most SMEs owners suffer from. Survey results have shown that about 19% of business owners who got interviewed have received training within their specialization of work. Also, there are about 80% of business owners who got interviewed did not get training within their work of specialization.

4.2. Official Registration Survey results indicated that there are about 89% of retail shops/stores not registered within any governmental institute such as health services and national security offices. Registering in this kind of governmental institution/office is essential for over sighting and security. Also, retail shops/stores owners who pay fees to register in an official governmental institute/office do not exceed 2%, and those do not get support from governmental institutions.

4.3. Work Restrictions In general, survey results indicated that there are 7% restrictions for the retail shops' owners in terms of selling, buying, or other restrictions. However, there are about 15% of some retail shop owners indicated that there are some security restrictions on transporting goods.