Economic Crisis and Small Business in Erbil-Iraq

Abstract

This research investigates the impact of economic crisis in Erbil-Iraq on small business (SBs) sector using factor analyses model. The sample constitute data collected from 110 SBs by using cross sectional data and simple random techniques. Results indicate that economic recession has a negative impact on the SBs sector in Erbil in the last two years. Employing the simplified static analysis framework based on simulations revealed that the economic recession has influenced negatively influence Erbil economy. Increasing general inflation rate, decreasing living standards and purchasing power have negative impacts the growth of SBs in Erbil and eventually the economy of Erbil.