Iraq's Small, and Medium Enterprises (SME) sector is critical to the country's economic revitalization, particularly for absorbing underserved populations including unemployed returnees, internally displaced persons (IDPs) and host community members, rebuilding conflict-affected areas, and spearheading the economy’s transformation and adaptation to climate change. Despite its importance, SMEs face significant challenges, including a lack of access to finance, limited technical and operational capacities, and an absence of tailored financial products and services.

As part of IOM’s access to finance strategy and under SME advisory services, IOM provides business development support, including business training, information provision, mentorship, and consulting, to promote the investment readiness of Iraqi SMEs. In addition the advisory services, including supports SMEs in their digital transformation to help them adapt to changing market demands and increasing digitalization. This support enables businesses to manage their operations more effectively and make informed decisions, ultimately strengthening their readiness to access investment and financial opportunities.

IOM offers a diverse range of training programs designed to support entrepreneurs at various stages of business development. These programs are designed to equip small, and medium-sized enterprises with the skills and resources needed to enhance and boost business potential and growth, ; by contributing to business formalization and helping local entrepreneurs satisfy common requirements for loan eligibility, IOM’s SME advisory services help create a pool of promising, investment ready SMEs who are ready to access private financial markets.