Dr. Fatih CURA1 and Fayeq Ali Ali2
Department of Business and Management, Tishk International University, Erbil, Iraq.
Email: [email protected], [email protected]
DOI: 10.23918/ICABEP2021p28
Abstract
The motivation behind this research is clear, that there is positive relationship among economic growth, microcredit and entrepreneurship. Since 2011, Kurdistan Regional Government (KRG) announced the youth microcredit program, which consisted of allocating loans to youth up to 35 years old, who plan to start their own businesses as not having access to financial resources with the aim of being financially independent. The loans were provided without interest rate and tax free for five years. This research discovers policies with concentrating on financial support by government. However, there has been good intentions by KRG with the expectation of having positive impact of funding youth of becoming business owners and financially independent, but many of those efforts are ended up in disappointment. This research argues that weakness of execution of the program is not about the bad luck, but the weakness of policies, managing structure and controlling systems in promoting successful entrepreneurship for a sustainable period. The current research employed a mixed method, where secondary data of beneficiaries for quantitative analysis and in depth-interview with the director of Microcredit as qualitative method. This research highlighted some challenges such as funding mechanism, training and number of employees in charge of this multidimensional process with solutions for more effective implementation and concluded that there should be matching between funds with the entrepreneurial ideas, monitoring and controlling of the funded project should be under an independent body and reform in the policies.
Keywords: Entrepreneurship, Microcredit and KRG
ICABEP2021
International Conference on Accounting, Business, Economics and Politics
3rd joint conference organized by the collaboration of the Faculty of Administrative Sciences and Economics,
Tishk International University, College of Administration and Economics, Salahaddin University-Erbil, and
University of Szczecin, Poland.
