Iraq News Now

From October 2016 until July 2017, a joint offensive with Iraqi Security Forces to reclaim the City of Mosul from the Islamic State of Iraq and the Levant (ISIL) precipitated large scale migration and displacement outside of the city. Operations to regain control of harder-to-access and denser areas led to widespread and severe damage to the physical infrastructure of parts of the city, especially west Mosul. Even prior to the offensive, three years of ISIL governance in Mosul had led to the full or partial closure of a number of small-scale industries as ISIL forces enforced systems of taxation, limited transportation routes and their accessibility for traders, and in some instances, confiscated local production and materials.

In order to assess the potential to create jobs through direct financial support to small and medium enterprises, IOM undertook a pilot market assessment from 12 August to 5 September. The purpose of the pilot assessment was to inform programming for a grant mechanism to fund the development of conflict-affected enterprises for the purposes of job creation. The pilot had the secondary objective to assess, specifically, whether the tools developed by IOM and its field staff are suitable to conduct a full market assessment, and whether such assessment should be qualitative or quantitative.

A series of tools were developed and tested; the results are analysed in this report for further development and recommendations. The pilot used a qualitative approach, and is designed to build into an Open Data Kit mobile data collection system whereby customized tools for each respondent group can be rolled out in the collection of mixed qualitative and quantitative data. Data collection was carried out by members of the Enterprise Development Fund team and the Returns and Recovery Unit. Between 12 August to 5 September, staff conducted five key informant interviews and 24 employer surveys. In addition, one focus group of five participants was conducted in a community space.

The primary objectives of the pilot market assessment were to understand:

1. The extent of damage suffered by small and medium enterprises impacted by the conflict between 2014 and 2017;
   
2. Market failures that can be addressed through matching grants or business development support;
   
3. Businesses that would create additional employment opportunities if supported;
   
4. Potentials for market distortion due to the introduction of cash.
   Key findings, below, are organized by the research objectives in four parts.