Rapid Market Assessment Report Sinjar Islamic Relief ... · project about women, youths, household...

1

Rapid Market Assessment Sinjar, Ninewa

Rapid Market Assessment Report Sinjar District, Ninewa

Islamic Relief Worldwide, Iraq

December 2019

2


ACKNOWLEDGEMENTS

Al-Mosul Center for Culture and Sciences 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 Center for Culture and Sciences (MCCS)

Ibrahim Adeeb Ibrahim

Data analyst and report writer

Mustafa Ahmed Foaad

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 France 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

3


Table of Contents

ACKNOWLEDGEMENTS ................................................................................................................................ 2

Background .................................................................................................................................................. 5

List of Acronym ............................................................................................................................................ 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. Sinjar Distract. .................................................................................................................................. 9

3. Social and Cultural Reality: ............................................................................................................10

4. Economic Issues: ............................................................................................................................11

5. Contribution of government and NGOs in rehabilitation and reconstruction: .............................12

6. Sectoral Orientations .....................................................................................................................12

6.1. PRODUCTION OF GRAINS .............................................................................................................14

6.2. LIVESTOCK PRODUCTION ..............................................................................................................14

6.3. OTHER BUSINESSES .....................................................................................................................14

7. Plan of Distributing Small and Medium Enterprises analysis (SME) (Supply and Demand) ..........15

8. Needs Assessments ........................................................................................................................16

8.1. AGRICULTURAL BUSINESSES ..........................................................................................................16

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

8.3. SMALL AND MEDIUM ENTERPRISES (SME) .....................................................................................17

9. Women participation in business/economic activities ..................................................................17

10. The Role of Chambers of Commerce and Industry (CCI) and Agricultural Institutions: ............18

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 SME .........................................................................................20

1.2. RECOMMENDATIONS RELATED TO AGRIBUSINESSES .........................................................................21

1.3. RECOMMENDATIONS RELATED TO LIVESTOCK AND POULTRY FARMING ................................................21

1.4. Recommendations for Mosul Chamber of Commerce & Industries (MCCI):.........................21

4


1.5. Recommendations for the Directorate of Agriculture in Ninewa (DoA). ..............................21

Individual Interviews with Agribusinesses in Sinjar Dist.: ..........................................................................22

1. Products Information .....................................................................................................................22

2. Input Information ...........................................................................................................................22

3. Sales Outlets...................................................................................................................................23

4. Source of Supply ............................................................................................................................24

5. Credit ..............................................................................................................................................24

6. Needs for businesses Development ...............................................................................................25

7. Available Assets..............................................................................................................................25

8. Leading Suppliers for Development Needs ....................................................................................25

9. Development Obstacles .................................................................................................................26

10. Coordination with Multiple Bodies/Investors ............................................................................26

10.1. Training: .............................................................................................................................26

10.2. Registrations: .....................................................................................................................27

10.3. Restrictions ........................................................................................................................27

Market Survey Results ...............................................................................................................................28

1. Preliminary Survey Information: ....................................................................................................28

1.1. THE SIZE OF EACH RETAIL SHOP/STORE ...........................................................................................28

1.2. TYPES OF RETAIL SHOPS/STORES ...................................................................................................28

Individual Interviews with SMEs owners: ..................................................................................................29

1. Workers Information .....................................................................................................................29

2. Goods Information .........................................................................................................................29

3. Credit Information .........................................................................................................................30

4. Needs Assessments ........................................................................................................................30

4.1. Training ..................................................................................................................................31

4.2. Official Registration ................................................................................................................31

4.3. Work Restrictions ...................................................................................................................31

5


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, Duhok, Ninewa , Salah

Adin, Karbala, Kirkuk, and Sulaymania 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). We also help people to get back on their feet-with more long-term

development where it is safe to do so.

IR Iraq is implementing a livelihood project with the financial support of the United Nations

Development program’s (UNDP) Iraq Crisis Response and Resilience Programme (ICRRP) to support

for Recovery and Resilience Building in Hamdaniya and Sinjar Dist.s, 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.

6


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

7


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 Sinjar Dist. with particular emphasis on

economic reality within the Dist. The evaluation of economic reality, in Sinjar, focused on different

subjects that included material and human needs in order to improve different production sectors by

focusing on agriculture, livestock, poultry, and SMEs, in particular.

1.3. Methodology of RAPID MARKET ASSESSMENT (RMA)

Separate questionnaires were 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 were working in those areas.

The selected instruments comprised:

1. Review of secondary sources (e.g., previous Assessments, Assessments with other INGOs)

2. The key informant and stakeholder Survey Questionnaires

3. SME Survey Questionnaires

4. FGDs 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 the 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

8


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, area leaders (Mukhtars), DoA, CCI, 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 91 (Sinjar 29, Al-Shimal 33, Qyrawan 29)

2. Agribusinesses interviews 182 (Sinjar 58, Al-Shimal 66, Qyrawan 58)

1.3.4. DESK REVIEW

All quantitative and qualitative data were analyzed 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. The

collected data were compared and filtered by the analysis team and then converted to a standardized

excel.

1.3.5. KEY INFORMATION INTERVIEWS (KII)

KII – Mukhtars, mayors, sub-mayor, community leaders, (DoA), CCI, NGOs working in Sinjar Dist. (8 KIIs,

4 in Sinjar, 4 in Al-Shimal ), 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 in Sinjar Dist. (6 FGDs, 2 in Sinjar, 2 in Al-

Shimal and 2 in Qyrawan) towns, Cities, and Villages. FGD included a minimum of 15 and a maximum of

20 participants and lasted about 30-60 minutes. FGD included discussions about business development

within the different mentioned sectors above and work restrictions and job opportunities.

9


2. Sinjar Distract.

Sinjar is about 120km away from both Mosul and Dohuk. Sinjar consists of three main areas sub-Dist. are

Sinjar Dist. centre, Al-Shimal, and Al-Qyrawan. The total population of Sinjar is about 334,395, according

to the Ministry of Planning’s census for 2019.

Sinjar is one of the famous areas affiliated with Mosul governorate that is well known for its massive

agricultural productions like vegetables, fruits, and grains in addition to some livestock and poultry

farming businesses.

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 11901 families, which is equivalent to 71406 individuals in various

villages of the judiciary. As for the number of families who are still IDPs in camps are about 4,239 families,

which is equivalent to 25,434 individuals, according to IOM reports on 31/12/2019. Figures 1 and 2 show

the number of displaced people until 31/12/2019.

IRAQ - Ninewa Governorate - Sinjar District

Geographical Coordinates: 36° 19' 15" North, 41° 51' 35" East

10


3. Social and Cultural Reality:

Sinjar is well known for its culture and social harmony. People from different ethnicities and religions all

live together within the small area of Sinjar. Arabs, Kurds, Yazidis, 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 Yazidis through confiscating their

property and lands in addition to kidnapping and killing them. After the liberation of Sinjar, there is low

levels of coexistence between Arabs and Yazidis as some of the Arabs there joined IS during the taking

1920

11661018

850 731 650500

350 321 305224220 181 175 164 163 160 153 130 130 123 122 120 115 107 100 89 85 81 80 80 76 75 75 65 62 54 53

Bo

rek

Qay

raw

an C

ente

r

Sin

un

i cen

ter

Do

ho

la

Zora

va a

nd

zir

wa

Gu

hb

al a

nd

sh

ork

a

Do

kri

Go

lat

Kh

ana

sor

Ro

zh H

alat

Hay

Als

hu

had

a

Kh

azo

ga

Ain

alh

isan

Vill

age

Hay

Yar

mo

k

Ad

ika

Ash

ti &

Her

iko

Shar

af A

ldd

in

Sola

gh

Al N

sire

ya

Gir

shab

ak

Kar

si

Hay

Aza

di

Haz

eel A

l-K

abee

r V

illag

e

Al S

ayer

Bal

if

Har

dan

Hay

Alq

adse

ya

Hay

Al N

aser

Ko

lka

Gry

Gaw

ry

Sib

aya

Am

mas

h V

illag

e

Um

am

ar V

illag

e

Qan

dil

Hay

bar

bar

oj

Bak

era

Al S

ibay

a( u

m A

ldan

abk)

Osi

va

AL-

Mu

alih

Vill

age

Figure 1: Returnees Households in Sinjar

900

500

296 285 260 225170 160 145 126 120 118 111 105 101 100 95 90 60 50 50

Figure 2: IDPs Households in Sinjar

11


over Sinjar. Right now, most of Yazidis are afraid to return to Sinjar due to the unstable situation of security

and economy.

The number of reports that dealt with the reality of marginalized groups in Sinjar have confirmed the

urgent need to support women, especially within the Yazidis community, as Yazidis women have been

kidnapped by ISIS who have enslaved them, as the number of kidnapping of Yazidis women is estimated

to be about 3547 women and girl, 1911 of whom were rescued. While the fate of 1636 of them is still

unknown, and even women who managed to escape or were rescued from ISIS suffer from deep

psychological crises due to the bitter experience they had with ISIS gangs just as many of the women who

fled with their families suffered from the problems of displacement, especially women who lost their

husbands, as it is estimated to be about 1293 Yazidis men who are killed or lost.

Women, in general, and Yazidis women, in particular, bear significant responsibilities, including doing

housework and caring for children. There are also 14% of Yazidis families headed by women before

displacement. This percentage has risen to 16% after displacement. In exchange for these responsibilities,

many opportunities are available to empower women socially and economically. Culturally, it is much less

than its need to carry out its responsibilities. The level of education among women is low, as the

percentage of illiterate women is 52% of women. Many Yazidis women also suffer from poverty, isolation,

and the lack of systems that protect women's legal rights.

4. Economic Issues:

The weakness of economic activity in Sinjar is very noticeable due to the lack 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 Sinjar local people – specifically Yazidis- 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 Sinjar, 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 substantial massive lack of demand for local products within Sinjar due to low source of income.

Investors are still reluctant to invest vast amounts of money on different agricultural and livestock

businesses due to the fear of the unstable security situation. Economic hardships, in Sinjar, may force its

locals to migrate again, but this time to look for a better source of income.

In addition to the challenges of the economic reality, there are some groups that face additional

challenges, such as females, where social restrictions are imposed on their areas of work represented by

their responsibilities at home and in the care of children. This is clearly shown in the low volume of

12


employment of females, as the percentage of SMEs that employ females does not exceed 21%, as

reflected in the level of their education, where the percentage of females holding a number of university

degree from SMEs owners or agricultural and livestock and chicken works does not exceed 1%. This

reduces the chances of females to secure a continuous source of income for their livelihood and increase

their dependency on male’s work.

5. Contribution of government and NGOs in rehabilitation and reconstruction:

Local government's role, after the liberation of Sinjar, 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 finical 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 high in price for

some livestock and poultry farmers who prefer to purchase feed ingredients from the market and install

it themselves. As for the primary role for NGOs, their support was limited only to reconstruction and

rehabilitation of schools and houses in addition to some humanitarian relief projects.

6. Sectoral Orientations

Agricultural and livestock farming are considered an essential

source for the economy in Sinjar. Two types of assets could affect

local productions directly. All available natural resources like water,

lands, and weather, in addition to human capital, are considered an

essential asset for agricultural and livestock productions.

Agricultural governmental institutions also provide fertilizers,

vaccines, feed, and necessary medical services, in addition to

providing many of them commercially in the market according to

the market prices shown in the appendix. Poultry farming,

beekeeping, and small retail stores are considered to be fewer

interesting businesses within Sinjar as it is not that popular and

does not get governmental support.

On the other hand, there are a number of obstacles facing these

sectors, including those related to outlets selling agricultural crops

and animal products that are concentrated in the borders of one

23%

26%24%

23%

4%

Figure 3: Relative Importance of Agricultural Sales Outlets

Near Villages

Near Districts

Near Areas

Near Governorates/Cities

Far Governorates/Cities

35%

26%

21%

18%

Figure 4: Relative Importance of Livestock Sales Outlets

Near Villages

Near Districts

Near Areas

Near Governorates/Cities

13


governorate or nearby governorates, and only a small amount

goes to distant governorates, as there is no export of agricultural

crops and animal products as production goes to meat

consumption. This can be seen in Figures (3) and (4)1. Among

them, it is related to poor access to credit, as 90% of farmers and

100% of livestock and poultry keepers are unable to obtain

financing and credit services, 76% of farmers, and 82% of livestock

and poultry keepers do not have access to credit purchase

services from Their suppliers with work materials, which are high

rates compared to what was the situation before 2014. As 40% of

farmers, and 47% of livestock and poultry keepers were not able

to obtain forward purchase services from suppliers, in contrast, 63% of farmers and 77% of Livestock and

poultry farmers do not sell futures to their clients at present, while the percentage of farmers and m

Livestock keepers and poultry who do not sell futures 39% and

49%, respectively,

before 2014. Farmers also suffer from funding and lack of

appropriate work tools, poor Trans., and Figures (5) and (6)

illustrate the relative importance of each of these handicaps. The

security concern and the proliferation of some armed factions

constitute a major impediment to the movement of people and

goods and negatively affect economic activity.

As for SMEs, about 80% are between very small and small

enterprises, 83% of which depends 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 indicated, as the

number of females engaging in economic activity within the SME sector does not exceed 38% compared

to the number of males. While in the agricultural, livestock, and poultry sectors, the female contribution

does not exceed 21% compared to males, as this activity was limited to specific fields, it does not exceed

38% of male work fields. Among the most prominent female work areas that have been documented are

the sale of sweets, telephones, foodstuffs, clothing, pastries, stationery, pharmacy, shaving, and

restaurants in addition to work in agriculture, livestock, and poultry. It is also noted that the percentage

of registration of SMEs in government and semi-government institutions is 40%, and this percentage in

the agricultural, livestock and poultry sector is 77%, and the proportion of recipients of VT in the SME

sector is about 44%, and all females in the business sector are looking Small and medium-sized to develop

their business, and most of them have the capital or land or both necessary to achieve the targeted

development, and most of them need the tools of work necessary to develop either in the agriculture

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

11%

2%

6%

14%

10%18%

1%

38%

Figure 5: Relative Importance of Development Obstacles for Agriculture Sectors

Weak Trading Relations

Lack of Market Knowledge

Lack of Suitable Places

Lack of Transportation

Market Distance

Lack of Working Tools

Lack of Experience

Lack of Investment

10% 1%6%

1%

15%

10%18%

1%

38%

Figure 6: Relative Importance of Development Obstacles for Livestock Sector

Weak Trading Relations

Lack of Market Knowledge

Lack of Suitable Places

Lack of Official Linces

Lack of Transportation

Market Distance

Lack of Working Tools

Lack of Experience

Lack of Investment

14


and livestock sector most females see that they need financing and have sufficient experience to develop

their business and that 56% SMEs that run by females and have males and females workers.

6.1. PRODUCTION OF GRAINS

Grains, wheat, and barley are the most essential agricultural outputs in Sinjar due to its high demand and

a high source of income. Grain cultivation costs farmers 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) 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 4,245,000 IQD during the reporting

period. Second, the cost of the machines and tools is about 1,840,000 IQD. Third, the cost of irrigation

systems for one land is about 600,000 IQD per season. Forth, the cost of seeds, fertilizer, and pesticides

is about 2,400,000 IQD for seeds, 1,890,000 IQD for fertilizers, and 2,170,000 IQD for pesticides. Fifth,

the cost of labours, tractors, and Trans. is about 2,500,000 for labours, 1,000,000 IQD for tractor drivers,

and 1,740,000 IQD for Trans. fees. Sixth, the cost of bush and disease combat is about 1,480,000 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, seed, machines, fertilizers, and pesticides, is about

17,256,000 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 essential 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 considerable 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 is about 7,681,000 IQD. Also, the fodder cost is

about 8,037,000 IQD in addition to medicine and vaccine services, which cost about 3,113,000 IQD. The

governmental veterinary department is providing vaccines and fodder concentrated for healthy

proportions. The cost of labour and Trans. fees is about 1,765,000 IQD and 1,692,000 IQD, respectively.

Health care cost is about 1,311,000 IQD. In general, the total average cost for each livestock farmer is

about 23,197,000 IQD per season according to Individual Interviews results. The profit rate is between

30% - 50% of the total cost.

6.3. OTHER BUSINESSES

There are some businesses that have less significance than agriculture and livestock businesses in terms of

the size of the investment and the returns accrued therein, as well as in terms of the interest of the Dist. ،

15


such as poultry farming, beekeeping, and vegetables and fruits. Other types of businesses were

represented by retail stores, restaurants, bookstores, and office services.

The average total cost for field businesses (vegetables and fruits oaks) is about 23,727,000 IQD per year.

While for trading and services businesses, the total cost is about 4,000,000 IQD per month, according to

Individual Interviews with some shop owners. Services, trading, and field businesses are providing Dist. of

Sinjar with multiple types of goods, and it requires massive financial and logistic support from the local

government and NGOs to keep them on the right track.

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

The main market of Sinjar is located in the areas of Al-

Shimal and Sinjar (Dist. centre) (as shown in Figure 7).

Small and very small enterprises form 80% of the main

market in addition to some medium retail stores in size.

While very big and big retail stores are scarce to be found

within Sinjar (as shown in Figure 8).

Medium and small retail stores are varied between 30

type, but there are only five main types of these

businesses that forms 50% of the main market in Sinjar

such as clothing stores, foodstuff stores, electrical devices

stores, barbershops, construction materials stores,

restaurants, and accessories stores (as shown in table 17).

About 50% of the processed goods in Sinjar's main market

are coming through nearest governorate centres (as

shown in Figure 9). The processed items/goods are all

being sold to locals within the Dist. or village. In terms of

capital investment, 83% of retail shop owners in Sinjar

depend on self-support through investing their capital

within the business itself. Proceeding goods/items are all

being bought in cash as there is about 29% who could

proceed with goods in credit purchase (purchase in debt).

However, there are about 49% of retail shop owners, in

Sinjar, allow their clients to buy items and goods in debt.

Price competition is the only source that could affect

the process of selling goods/items, in Sinjar, for

SMEs. About 13% of retail stores are not subjected to

price competition with other stores within the same

0

100

200

300171

45

243

Figure 7: Number of Retail Shops

51%

29%

15%

6%

1%

Figure 8: Retail Shops in Accordance with The Size

Very Small

Small

Medium

Large

very Large

1%

17%

45%

20%

7%

10%

Figure 9: Sources of Supplying Goods

Outside theCountry

Far GovernorateCentres

Near GovernorateCentres

Nearest DistrictsCentres

Nearest Sub-Districts

16


area. In general, the demand for buying goods is deficient as about 95% of retail shop owners have

a number of sales of 45 each per day. moreover, the number of sales goes down to about 15 per day in

35% of the businesses. Thus, low source of income and small size of population have affected the

purchasing power within Sinjar Dist.

8. Needs Assessments

The need for each business is differed according to its type and size. Different business patterns are

discussed below.

8.1. AGRICULTURAL BUSINESSES Agribusiness needs vary in accordance with 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 important 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 42% 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 significant portion of multi-seasonal farming even though it is not

used regularly by farmers due to the lack of experience and governmental support. 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 Sinjar Dist. to bring back greenhouses farming again to the area (2).

8.2. LIVESTOCK AND POULTRY FARMING BUSINESSES Livestock farming receives great attention from local farmers in Sinjar. Raising cows and sheep has

significant portion of livestock farming. Animals and fodders shape about 60% of the total cost of

livestock farming according to Individual interview results. The type of fodders used varied between

wheat, corn, and barley. Also, livestock farming requires high levels of health care like medicine and

vaccines. Poultry farming businesses are available, but in a meagre amount. There are about 10% of

2 Dead Land: Islamic State’s Deliberate Destruction Of Iraq’s Farmland, Amnesty International, 2018.

Food Security: Cluster Sinjar Assessment, Fsc Partners Report Iraq, August 2017.

17


poultry farming businesses used to produce white meat and eggs within Sinjar. 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 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 (as shown

in table 22). On the other hand, human capital includes technical and management experience, market

knowledge, trade relations, experience in marketing and Ad., competence 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 4% of retail shop owners have got a bachelor's degree, while 19%

have completed high school education. Moreover, about 25% have completed primary school, while 49%

have not had any education. The second indication is the level of training. About 27% 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 6% 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 an evaluation principle of accounting, marketing, trade

relationships, and VT in addition to training on basic principles of management for SMEs. One of the

crucial 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 increasing labours source of income. As a result, investors

and clients will have their 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.

18


10. The Role of Chambers of Commerce and Industry (CCI) and Agricultural Institutions:

Governmental institutions specialized in professional aspects such as CCI 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 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- Sinjar.

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 March. DoA has branches in various areas and

Dist.s in Sinjar. There is the Sinjar Agriculture Division and the Nimrod Agriculture Division. However,

through interviews with farmers and livestock and poultry farmers, it was found that there are only

19% of farmers registered in an agricultural division, and only 1% 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 CCI, 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

19


- Issuing membership certificates - Issuing certificates of origin - Providing merchants with travel bookings 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 in the Sinjar 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 judiciary 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 9% SMEs registered in CCI. This is due to several reasons, including the high registration

fees, which amount to 190,000 IQD, the fear of tax prosecution, in addition to the lack of incentives for

professionals to register, and the law under which some of these institutions operate includes some

restrictions on the activities of professions and crafts such as restrictions on designations and the nature

of activity and others.

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

Sinjar Dist.

20


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 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

21


1.2. RECOMMENDATIONS RELATED TO AGRIBUSINESSES

1- Development of human capital for farmers through the following points:

- 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

- Trainings 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 Sinjar 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-Sinjar 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 Sinjar 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 agricultural output and protecting it from external competition.

22


Individual Interviews with Agribusinesses in Sinjar Dist.: The purpose of this section is to evaluate the state of production within agricultural, livestock, and poultry

farming sectors in Sinjar Dist. About 182 production unit was chosen to conduct Individual Interviews with

their owners/workers in order to get more info/explanation about the state of agricultural and livestock

productions and poultry farming. Individual Interviews covered questions about inputs, supplies, credit,

needs and assets, training, registration, and restrictions. More details are given in the following sections.

Dist. Sinjar Al-Qayrwan Al-Shimal Dist. Total

Number of Interviews within the Agriculture Sector 32 26 29 87

Number of Interviews within the Livestock Sector 29 32 34 95

Table 1 Number of Interviews about The State of Agricultural and Livestock Production in Sinjar Dist.

1. Products Information

There are limited types of agricultural products that can be cultivated in Sinjar Dist. Those products are

vegetables, fruits, grains, legumes, and in addition to small amounts of tobacco.

Agricultural Products Vegetables Fruits Grains Legume Tobacco

Percentage 34% 27% 21% 14% 1%

Table 2 Relative Importance of Agricultural Products According to Farmers

In terms of livestock products, breeding sheep and goats have been very popular among other types of cattle

within Sinjar Dist. About 75% of livestock products are coming through breeding sheep and goats.

Livestock

Products

Sheep Breeding Goats

Breeding

Hens

Breeding

Yogurt Leather Fodder Meat Baby Chickens Broiler

Breeding

Percentage 51% 36% 5% 2% 1% 1% 1% 1% 1%

Table 3 Relative Importance of Livestock Products According to Farmers

Furthermore, Individual Interviews results indicated that about 53% of agricultural farmers and 62% of

livestock farmers said that they have only one season of production per year. The other 38% of agricultural

farmers and 27% of livestock farmers said they have two seasons of production per year. Moreover, finally,

about 9% of agricultural farmers and 12% 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 Individual 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 16 shows the importance of each input in accordance with their

percentages from highest to lowest.

23


Table 4 Relative Importance of Fixed Assets in Sinjar Dist.

For livestock farmers, barns are considered the most needed input important 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 extension agents, tractors drivers, ways of Trans., and finally, health care and bush

combat.

- From livestock farmers' point of view, daily paid workers are also the most important asset of human

resources in addition to health and care services of livestock.

Human Resources Daily Paid

Workers

Extension

Agents

Tractors

Drivers

Ways of

Trans.

Health

Care

Bush and

Diseases combat

Percentage Agricultural Sector 22% 19% 18% 16% 13% 12%

Livestock Sector 27% 6% 10% 14% 26% 18%

Table 5 Relative Importance of Human Resources Types in Agriculture and Livestock Sectors

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 Seeds Legume Tobacco Total of Corps

Products

Near Villages 12% 30% 26% 0% 25% 0% 23%

Near Dist.s 26% 26% 27% 27% 25% 0% 26%

Near Areas 30% 21% 22% 27% 25% 9% 24%

Near Governorates/Cities 29% 19% 21% 27% 23% 73% 23%

Far Governorates/Cities 3% 3% 4% 18% 2% 18% 4%

Table 6 Relative Importance of Agricultural Sales Outlets in Sinjar Dist.

Livestock Products Leather Yogurt Fodder Meat Goats Hens Broiler Sheep Dairy

Cows

Total

Production

Near Villages 33% 52% 36% 33% 35% 45% 0% 32% 33% 34%

Near Dist.s 27% 22% 21% 27% 25% 25% 100% 25% 33% 25%

Near Areas 20% 13% 21% 20% 20% 15% 0% 21% 33% 20%

Near

Governorates/Cities

13% 9% 14% 13% 18% 15% 0% 19% 0% 18%

Far

Governorates/Cities

7% 4% 7% 7% 3% 0% 0% 3% 0% 3%

Table 7 Relative Importance of Livestock Sales Outlets in Sinjar Dist.s

Fixed/Inputs

Assets Agricultural land Tractors (Plough, Mowers) Wells Sprayers Pumps Greenhouses

Percentage 41% 17% 13% 13% 8% 8%

24


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.

Resources

Far

Go

vern

ora

tes

Ce

ntr

es

Ne

ar

Go

vern

ora

te

Ce

ntr

es

Ne

are

st D

ist.

C

en

tre

s

Dis

t. C

en

tre

Ne

are

st

Cit

ies

Cit

y C

en

tre

Ne

ar

Sub

-Dis

t.

Sub

-Dis

t.

Ce

ntr

e

Ne

are

st

Vill

age

s

Vill

age

C

en

tre

Machines 1% 10% 11% 4% 16% 4% 16% 12% 4% 21%

Greenhouses 1% 12% 14% 3% 23% 2% 24% 7% 6% 8%

Sprayers 1% 9% 11% 5% 15% 5% 12% 16% 3% 23%

Seeds 1% 10% 14% 5% 16% 6% 13% 14% 2% 17%

Fertilizers 1% 12% 13% 5% 17% 6% 14% 14% 1% 18%

Pesticides 1% 12% 12% 5% 16% 7% 15% 15% 1% 17%

Workers 0% 6% 6% 0% 1% 0% 1% 6% 19% 61%

Tractors Drivers 0% 6% 9% 0% 1% 0% 1% 6% 16% 60%

Health Care 1% 6% 12% 5% 18% 5% 14% 16% 1% 23%

Bush and Diseases Combat 1% 4% 8% 7% 19% 7% 16% 19% 0% 19%

Total Resources 1% 9% 11% 4% 15% 5% 13% 13% 4% 25%

Table 8 Relative Importance of Securing Main Sources for Agriculture Production in Sinjar Distrect

Resources

Far

Go

vern

ora

tes

Ce

ntr

es

Ne

ar

Go

vern

ora

te

Ce

ntr

es

Ne

are

st

Dis

t. C

en

tre

s

Dis

t. C

en

tre

Ne

are

st

Cit

ies

Cit

y C

en

tre

Ne

ar S

ub

-D

ist.

Sub

-Dis

t.

Ce

ntr

e

Ne

are

st

Vill

age

s

Vill

age

C

en

tre

Cows 10% 27% 27% 0% 12% 2% 5% 17% 0% 0%

Sheep 0% 13% 17% 3% 18% 2% 14% 13% 6% 14%

Poultry 3% 23% 28% 0% 15% 0% 3% 21% 0% 8%

Fodder 1% 14% 18% 4% 6% 6% 1% 22% 1% 27%

Medicine and Vaccine 1% 11% 20% 3% 16% 3% 12% 16% 1% 17%

Workers 1% 8% 9% 0% 5% 1% 3% 8% 10% 56%

Maintenance 0% 8% 8% 4% 12% 4% 3% 32% 0% 31%

Health Care 0% 10% 19% 1% 17% 2% 12% 17% 1% 20%

Bushes and Diseases Combat 0% 5% 10% 2% 24% 4% 20% 17% 1% 17%

Eggs 4% 0% 0% 4% 30% 4% 0% 35% 0% 22%

Total Resources 1% 11% 16% 2% 15% 3% 10% 17% 3% 22%

Table 9 Relative Importance in Securing Main Sources for Livestock Production in Sinjar Dist.

5. Credit

Individual Interviews results showed that about 90% of farmers and 100% of livestock farmers are not

able to get funds or credit services. Also, about 76% of agricultural farmers and 82% of livestock farmers

are not able to buy supplies for their businesses through credit purchase (purchase in instalments) from

their suppliers. The above percentages are higher than it was before 2014. Before 2014, there were about

25


40% of the agricultural farmers and 47% of livestock farmers could not get credit purchase services from

their suppliers.

However, about 63% of agricultural farmers and 77% of livestock farmers do not offer credit purchases

(purchase in instalments/debt) to their customers. While before 2014, there were about 39% of

agricultural farmers and 49% of livestock farmers did not offer credit purchases to their customers.

6. Needs for businesses Development

According to Individual Interviews results, there are about 83% of agricultural farmers and 72% of

livestock farmers are willing and planning to expand their businesses in Sinjar Dist. Needs for business

development can be determined through tables 10 to 14, as shown in the next sections.

Table 10 Relative Importance of Needs for business Development within Agribusinesses in Sinjar Dist.

7. Available Assets

The most critical assets for agricultural and livestock farmers are represented by good experience,

invested capital, excellent marketing skills, way of Trans. and proper agricultural land.

Table 11 Relative Importance of Available Assets for Agriculture and livestock Sectors in Sinjar Dist.

8. Leading 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.

Needs

Mar

keti

ng

and

Ad

.

Way

s o

f Tr

ans.

Raw

M

ate

rial

s

Cap

ital

Lan

d

Spac

e

Bu

ildin

g

De

cora

tio

n

Too

ls

Mac

hin

es

Furn

itu

re

Go

od

s

Agriculture Sector 2% 7% 14% 21% 9% 9% 4% 0% 11% 10% 0% 11%

Livestock Sector 0% 8% 17% 24% 11% 8% 2% 0% 11% 6% 0% 12%

Available Assets

Mo

de

rn

Wo

rkin

g To

ols

Sup

plie

rs f

or

Raw

Mat

eri

als

Go

od

Cu

sto

me

rs

Ap

pro

pri

ate

Way

s o

f Tr

ans.

Mar

ket

Kn

ow

led

ge

Mar

ket

Go

od

Cap

ital

Inve

stm

en

t

Lan

d

Go

od

exp

eri

en

ce

Agriculture Sector 8% 9% 12% 12% 5% 13% 13% 12% 17%

Livestock Sector 8% 6% 14% 12% 6% 13% 14% 11% 17%

26


Table 12 Relative Importance of Suppliers for Development Needs to both Agriculture and Livestock Sectors in Sinjar Dist.

9. Development Obstacles

Lack of funding/investment is considered one of the critical development obstacles for agricultural and

livestock farmers in addition to the lack of working tools and Trans.. Table 25 shows substantial

development obstacles per their percentages.

Development Obstacles

We

ak T

rad

ing

Re

lati

on

s

Lack

of

Mar

ket

Kn

ow

led

ge

Lack

of

Suit

able

P

lace

s

Lack

of

Off

icia

l ie

nce

s

Lack

of

Tran

s.

Mar

ket

Dis

tan

ce

Lack

of

Wo

rkin

g To

ols

Lack

of

Exp

eri

en

ce

Lack

of

Inve

stm

en

t

Agriculture Sector 11% 2% 6% 0% 14% 10% 18% 1% 39%

Livestock Sector 10% 1% 6% 1% 15% 10% 19% 1% 39%

Table 13 Relative Importance of Development Obstacles for Agriculture and Livestock Sectors in Sinjar Dist.

10. Coordination with Multiple Bodies/Investors

Individual Interviews results indicated that investors are the most critical 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 of

Trade and

Commerce

Suppliers of

Raw

Materials

Single

Trade

Wholesale

Trade

Consumers

Agriculture Sector 23% 7% 17% 16% 18% 20%

Livestock Sector 22% 6% 16% 17% 19% 20%

Table 14 Relative Importance of Coordinating with Multiple Bodies within Agriculture and Livestock Sectors in Sinjar

10.1. Training:

According to Individual Interviews results, agricultural and livestock farmers have not had any

training within their specialization of work. Also, none of the farmers are willing to have any

training any time soon.

Leading Suppliers for

Business Development Needs

Far

Go

vern

ora

tes

Ce

ntr

es

Ne

ar G

ove

rno

rate

C

en

tre

s

Ne

are

st D

ist.

C

en

tre

s

Dis

t. C

en

tre

Ne

are

st C

itie

s

Cit

y C

en

tre

Ne

ar S

ub

-Dis

t.

Sub

-Dis

t. C

en

tre

Ne

are

st V

illa

ges

Vill

age

Ce

ntr

e

Agriculture Sector 4% 12% 15% 5% 16% 5% 14% 14% 0% 13%

Livestock Sector 1% 9% 11% 5% 19% 5% 17% 17% 3% 14%

27


10.2. Registrations:

Individual Interviews results showed that about 69% of agricultural farmers and 53% of livestock farmers

are registered in governmental institutions in exchange for 96,000 IQD per year. Plus, about 34% of

livestock farmers have received meagre funds from governmental institutions to support their

businesses.

10.3. Restrictions

There are no restrictions on buying and selling goods, according to Individual Interviews results.

However, there are about 54% of Agricultural farmers, and 86% of livestock farmers believe that there

are some security restrictions on transporting goods.

28


Market Survey Results A preliminary market survey was done first in order to evaluate SMEs within Sinjar Dist. The survey included/covered the main markets of sub-Dist./nearest areas affiliated with Sinjar Dist. The nearest areas that affiliated with Sinjar are Sinjar area (Dist. centre), Snuny area (Al-Shimal sub-Dist. centre), and Al- Qyrawan area (Al- Qyrawan Dist. centre). The number of retail shops/stores covered in the survey are 459 retail shop/store and distributed, as shown in table 15.

Dist. Sinjar Al-Qyrawan Al-Shimal

Number of Retail Shops/stores 171 45 243

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/store was classified (according to the number of front columns for each shop/store) 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 (Huge and multi floors shop/store). Survey results indicated the following percentages in accordance with the size of each retail shop/store, as shown in table 16.

Size Very Small Small Medium Large very Large

Percentage 50.5% 29.0% 13.5% 5.7% 1.3%

Table 16 Retail Shops/Stores in Sinjar Dist.s in Accordance with The Size

1.2. TYPES OF RETAIL SHOPS/STORES

Survey results showed that there are 34 different types of retail shops/stores and were

represented proportionally, as shown in table 17.

Number Type Percentage Number Type Percentage

1 Clothing 13.7% 18 Fabric 1.5%

2 Foodstuff 13.3% 19 Construction Materials 1.5%

3 Electrical Devices 6.5% 20 Pharmacy 1.5%

4 Sweets 6.5% 21 Carpentry 1.3%

5 Barbershops 6.5% 22 Car’s Oil 1.1%

6 Stationery and Photocopy 4.8% 23 Tailor shop 1.1%

7 Shoe Stores 4.1% 24 Blacksmith 1.1%

8 Restaurants 3.7% 25 Beauty Salon 1.1%

9 Fruits and Vegetables 3.7% 26 Arcade 0.9%

10 Medical Clinic 3.5% 27 Coffee shop 0.9%

11 Furniture 3.1% 28 Car’s Accessories 0.9%

12 Phone Trading 2.4% 29 Accessories 0.9%

13 Meat 2.0% 30 Photography 0.7%

14 Al-Cholic drinks 1.7% 31 Cafeteria 0.7%

15 Money Exchange Store 1.7% 32 Pastries 0.4%

16 Car Maintenance 1.7% 33 Sundae 0.4%

17 Electrical devises Maintenance

34 other

2.0%

29


Table 17 Percentages of the type of Retail Shops/Stores in Sinjar Dist.

Individual Interviews with SMEs owners: After the preliminary survey was done within the primary market of Sinjar Dist., 91 of the retail shops/stores were chosen to conduct Individual Interviews with their owners/workers in order to get more explanation/info about the state of the market in Sinjar Dist. Individual Interviews included questions about workers, goods, needs, training, registration, and restrictions. The number of Individual Interviews conducted in each area is shown in table 18.

Dist. Sinjar Al- Qyrawan Al- Shimal Total

Number of Interviews 29 29 33 91

Table 18 Number of Interviews in Evaluating SMEs in Sinjar Dist.

1. Workers Information

This section discussed/included info about the number of paid workers per hour 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 47% 27% 14% 5% 4% 3%

Table 19 Number of Male Workers Per Retail Shop/Store

Number Female Workers 0 1 2 3

Retail Shop/Store Percentage 79% 9% 8% 4%

Table 20 Number of Female Worker Per Retail Shop/Store

The average working hours was estimated to be about 8 hours and 30 minutes 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 49% 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 meagre.

2. Goods Information

This section covered the sources of supplying goods for retail shops/stores. Through Individual Interviews, the following results were obtained: 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 dependent source for supplying goods is the nearest villages and sub- Dist. Also, there’s no importation of goods from outside the country, as shown in table 21.

Table 21 Sources of Supplying Goods in Sinjar

30


3. Credit Information

This section covers the possibility of business owners in getting a credit purchase (purchase in

instalments). Survey results indicated that about 29% of business owners were able to buy goods in credit

purchases (purchase in instalments) through their suppliers. Also, the results show an increase in the

percentage of buying goods in credit purchase than it was before 2014, which was about 21%. Moreover,

there are about 4 9% 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 32%.

4. Needs Assessments

Surveys results showed that about 78% 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 in the

size of the building, increase in the raw materials, buying modern tools for work, buying a land/machine,

buying furniture, and marketing and Ad. Table 22 shows the percentage of each field in accordance with

their importance.

Types of

Expanding

Inve

stin

g C

apit

al

Go

od

s

Are

a/Si

ze

Raw

Mat

eri

al

Too

ls

Lan

d

Tran

s.

De

cora

tio

n

Mac

hin

es

Co

nst

ruct

ion

Furn

itu

re

Mar

keti

ng

and

Ad

.s

Percentage 21% 16% 13% 10% 9% 7% 5% 5% 5% 4% 4% 2%

Table 22 Type of Business Expansion According to Retail Shops/Stores Owners in Sinjar

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 good 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.

The primary source for buying/supplying for modern tools/machines/goods is provided by the nearest

cities/governorates and sub-Dist.ss centres as represented by table 24.

Import Goods

from Outside

the Country

Far Governorate

Centres

Near Governorate

Centres

Nearest Dist.s

Centres

Nearest

Sub- Dist.s

Nearest

Villages

1% 17% 46% 20% 7% 10%

Available

Assets

Exp

eri

en

ce

Cap

ital

Mar

keti

ng

Skill

s

Go

od

Cu

sto

me

rs

Suit

able

way

of

Tran

s.

Mo

de

rn W

ork

Too

ls

Lan

d

Sup

plie

rs o

f

Raw

Mat

eri

als

Mar

ket

Kn

ow

led

ge

Percentage 24% 19% 11% 11% 10% 9% 8% 5% 3%

Table 23 Most Important Available Assets to Improve Business According to Retail Shops/Stores Owners

31


Sources of Supplying for

Developing Materials

Ne

are

st

Go

vern

ora

tes/

Cit

ies

Ce

ntr

es

Ne

are

st D

ist.

Ce

ntr

es

Far

Go

vern

ora

te

Ce

ntr

es

Ne

ar V

illa

ges

Ne

are

st S

ub

-Dis

t.

Imp

ort

atio

n f

rom

Ou

tsid

e C

ou

ntr

y

Percentages 35% 27% 23% 9% 5% 2%

Table 24 Sources of Supplying for Developing Materials in Sinjar

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.

Restrictions on

Business Development

Lack

of

Inve

stm

en

t

Lack

in t

he

Wo

rkin

g

Too

ls

Lack

of

Tran

s.

Lack

of

Ap

pro

pri

ate

Are

as/L

and

s

Mar

ket

Dis

tan

ce

Lack

of

Mar

keti

ng

skill

s

Lack

of

no

t H

avin

g

Off

icia

l bu

sin

ess

Lice

nce

Oth

er

Percentages 44% 18% 12% 8% 8% 7% 1% 1%

Table 25 Restrictions on Business Development in Sinjar Dist.

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

Focal Point

Inve

sto

rs

Co

nsu

me

rs

Sup

plie

rs o

f

Raw

Mat

eri

als

Wh

ole

sale

Re

tail

Trad

e

CC

I Percentages 26% 21% 19% 13% 12% 9%

Table 26 Important Focal Points to Assist in Business Development in Sinjar

4.1. Training

Lack of training is considered one of the weakest points that most SME owners suffer from. Survey results have shown that about 21% of business owners who got interviewed have received training within their specialization of work. Also, there are about 4% of business owners who were interviewed did not get training within their work of specialization.

4.2. Official Registration

Survey results indicated that there are about 53% of retail shops/stores not registered within any governmental institution such as health services and national security offices. Registering in this kind of governmental institution/office is important for over sighting and security. Also, retail shops/store owners who pay fees to register in an official governmental institution/office do not exceed 13%, and those who get support from governmental institutions do not exceed 5%.

4.3. Work Restrictions

In general, survey results indicated that there are no restrictions for the retail shops' owners in terms of

selling, buying, or transporting goods. However, there are about 20% of retail shop owners who indicated

that there are some security restrictions on transporting goods.

Rapid Market Assessment Report Sinjar Islamic Relief ... · project about women, youths, household...

Documents

Transcript of Rapid Market Assessment Report Sinjar Islamic Relief ... · project about women, youths, household...