Advocating for Policy Reforms for Startups

As the number of startups in the Kurdistan Region of Iraq (KRI) grows, so does the spotlight on both their successes and challenges.? We have seen founders introduce new products into the market, hire bigger and bigger teams, and raise large investment rounds. But with more entrepreneurs registering businesses, raising investment, and seeking legal protections for their innovations, we have seen trends in the common regulatory obstacles that founders frequently face.?

In light of this in spring 2021, Five One Labs, in collaboration with Rwanga Foundation and with the support of the Netherlands Consulate General in Erbil, conducted a research project to better understand the challenges facing entrepreneurs from across the KRI. More than 20 business owners, both men and women, running tech and tech-enabled businesses, and other relevant stakeholders from across sectors participated in three focus groups and a panel discussion to discuss the obstacles and challenges they are facing and to suggest solutions for implementation by Kurdistan Regional Government.?

The main challenges that entrepreneurs highlighted throughout the course of the project included the following:

• Limited intellectual property protection
• Obstacles with the banking sector and limited awareness of e-payments
• Taxation policy that does not favor small businesses
• Digital skill gap
• Limited opportunities for, and understanding of, investment

The entrepreneurs were also asked to share proposed solutions to these challenges, and in addition to the recommendations mentioned by the entrepreneurs, there are several proposed solutions provided by both Five One Labs and the Rwanga Foundation based on our experience working with, and providing programs and services for, entrepreneurs throughout the KRI.

Some of these solutions include:

• Reform of the business registration process?
• Digitization of e-signatures
• IP, trademark, and content protection
• Taxation reform?
• Development of one-stop shops for startups
• Introducing a KRI-wide entrepreneurship curriculum

The challenges and proposed solutions were synthesized into a policy paper and presented to the Deputy Prime Minister of the KRG, Qubad Talabani.

We invite our community to read the policy paper and provide their feedback so that we can continue making positive changes for entrepreneurs across the KRI!