The obstacles preventing the small firms in Iraq to export

Export performance is usually taken as one of the important factors in driving a country’s economic growth. Exports can improve the firm’s production efficiency, overcome higher trade barriers and address different market preferences in the
competitive international markets. This study investigates the obstacles faced by the small Iraqi firms to export. Four obstacles are considered from a theoretical perspective, as variables that have affected the success of these firms to export,
which are (i) the infrastructure, (ii) trade policies, (iii) corruption, crime and security
and (iv) finance. The empirical research was conducted through a questionnaire distribution concerned with the textile and food industry sectors in Iraq. Both textile and food industry sectors are of high export potential, but are found to be struggling with international recognition. The impediments or barriers and also the incentives
were labelled as the core factors. The results of data analysis obtained from data collected from respondents show that both food and textile sectors have produced similar outputs where their answers are nearly same. Both sectors face the same issues and problems in suggesting the way forward. The small firms in both sectors, with very different products and strategic advantages, require entrepreneurial leadership, strategy and innovation to take advantage of the changing international
regulations, favourable domestic factor condition and government support to compete successfully in the international markets.