Research and Blogs

Alumni Spotlight: Rawaz Barznji, Managing Director of Satchel & Pouch Business Consulting Firm and Founder of Suli Capital

Rawaz Barznji, a 2015 alum of the MBA program at AUIS, is the founder of Satchel & Pouch Business Consulting Firm, whose headquarters is based in Sulaimani but operates internationally. We interviewed Rawaz about developing a client base, working “smart,” and competing in the market of Iraq-based business consulting.

 

AEI: What gave you the idea for starting Satchel & Pouch? And how did you decide on the name Satchel & Pouch?

 

RB: I previously had a need for business consulting services, and quickly discovered that there were no firms in operation locally which offered such services, and this prompted me to consider offering these services myself based on my own experience as an entrepreneur starting and managing business in Iraq, and dealing with an international client base both within Iraq and abroad.

 

I have always had a personal interest in branding and ideas of business identity, and, as Satchel & Pouch is operating on an international scale and conducting its businesses in many languages, the name had to be something simple and memorable in English, the international language of business. I believe that our name conveys the simple but important message that we address our clients’ specific needs at strategic and operational levels.

 

AEI: Can you describe the process by which you find clients?

 

RB: We have been able to win and retain a significant number of clients outside of Iraq by utilizing our strong network of consultants and business partners in the UK, US, UAE, Lebanon, and elsewhere, and have used our local/national network in a similar manner to build relationships and expand our business here in Iraq with both private and public sectors. International outreach is easy and efficient, and within Iraq, I am able to use my personal network to “connect the dots” and, as one of the very few such firms operating here, deliver a differentiated product to keep clients happy and further build our own brand in this nascent market.

 

AEI: How is your business different from your competitors? Is there a lot of competition in the Kurdistan Region in the field of business consulting?

 

RB: There is not much competition on a local scale, but many companies are trying to enter the Iraqi market from the outside. However, this has clearly not proven easy for them. Without an established infrastructure and the personal network and cultural knowledge that come with a dedicated presence on the ground, I believe that these companies will continue to find it difficult to build traction here in Iraq.]

 

AEI: What's the #1 skill you think is needed for success is business consulting?

 

RB: Our slogan is “Work Smart.” Our job is not merely to provide services on request, but rather to anticipate the strategic and operational needs of our clients and present them with opportunities to improve their businesses. Working hard is still important, but we now live in a world where working smart is key – the world economy has changed drastically over the past two decades, and some of the world’s most prominent businesses today provide services that were nowhere close to existing a generation ago. We are constantly evolving and are thus able to meet the needs of our clients even before they perceive the need for a change.

Student Spotlight: Halo Ayub, Founder of Hangaw

Halo Ayub, a current business student at AUIS, is the founder of Hangaw Organization, based in Halabja. Hangaw focuses on teaching English and increasing speakers' confidence and passion for learning. We interviewed Halo about the importance of learning English, opportunities in Halabja, and the challenges and successes of Hangaw's first cohort this summer. 

AEI: Could you briefly provide a description of Hangaw Organization and the reason behind starting it specifically in Halabja?

 

HA: Hangaw is a non-profit organization that aims to provide opportunities for English learners to improve and advance their English abilities. Hangaw offers English classes, seminars, and activities in English with a focus on job readiness. I chose Halabja as the location to start Hangaw to give residents a voice to advocate for their rights--a voice that has often been lost given the ongoing struggles people have faced since the chemical bombardment of the city in 1988.

 

Part of my dream is to provide better opportunities for my friends and the people of Halabja. Because I grew up in Halabja, I recognize the talent of young people in my city and want to help them develop their ideas and build a spirit of collaboration so they can achieve their dreams. I believe that nothing will stop us until we are satisfied with the work we have done.

 

AEI: How do you hope your organization will contribute to greater opportunities for people in Halabja, and what is the significance of English education in achieving Hangaw’s goals?

 

HA: I felt there was a need to address the gap in government services--particularly in the education sector--for residents of Halabja. The 1988 chemical attack on the city is still negatively affecting residents in the form of severe health problems and poor quality of life. This is further exacerbated by the government’s continued failure to provide quality healthcare, education, and services to Halabja. This gap left by the public sector inspired me to start Hangaw to give residents--and particularly youth--an opportunity to take charge of their futures. The ability to speak English allows Hangaw participants to gain independence, more powerfully explore opportunities to make meaningful change in their communities, and build civil society.

 

AEI: Can you tell us a bit about your first Hangaw cohort this summer? How did you develop the curriculum? What were some of the challenges and successes?

 

HA: This summer, Hangaw offered English courses for three levels: Elementary, Intermediate, and Advanced. The majority of students took the advanced-level course, which focused on conversational skills. The course was based partly on the AUIS Academic Preparatory Program (APP) curriculum, and involved guest talks from native speakers and English professors to promote idea exchanges and ways to overcome obstacles to learning English. The most challenging aspect of the program was getting students to adhere to the policy of no Arabic or Kurdish being spoken on the campus. Both students and staff were required to only speak English so that they would stay motivated to meet their English language goals.

 

As Hangaw expands, we are working to build a team of 40 volunteers to conduct monthly activities such as debates and seminars in Halabja city. Although Hangaw began without any financial support, we were successful in increasing students’ confidence levels. By the end of the summer, many of the students who had felt shy and insecure in their language abilities became more confident in speaking English, even with native speakers. One thing we especially focused on was motivation to promote a love of learning. On the first day of class, one of the students said, “I hate English, but I have to learn because of my job.” However, after weeks of activities designed to make learning more enjoyable, her mentality changed and her desire to learn English evolved from a necessity to something she enjoyed. This is just one example of how our staff succeeded in increasing students’ motivation to get them to love learning English.

 

Student Spotlight: Hana Hama, Co-Founder & CEO of Canvas

As our first student spotlight, we are proud to introduce Hana Hama, an undergraduate business student at AUIS. We interviewed Hana about PR challenges, trends away from traditional marketing, and the experience of working in a creative industry with a passionate team.

AEI: What was your biggest challenge in starting Canvas?

HH: My biggest challenge when starting Canvas was public relations. We are very young. And Canvas is a business-to-business firm. In the beginning, it was really challenging for us to reach business owners and managers to explain our services. We also had to choose the right approach to convince clients to try digital marketing because social media marketing was a new trend for Iraqi businesses. It was hard for them to try something new and give up their traditional marketing strategies.

AEI: What's the most interesting aspect your work?

HH: The most interesting aspect of our work is the chance to use our creativity to build art. The Canvas family, which includes a very young team of AUIS graduates and undergraduates with a massive passion for the field, is always looking for better ideas, better stories, and better visuals to compete in the market and satisfy our clients. Therefore, working with a highly imaginative and deeply inspired team with endless creative energy is the most interesting aspect of my work. Indeed, I am very satisfied with my team's creativity, endless passion, and sheer dedication for the art we are making.

AEI: What gap did you feel you were filling in digital marketing in Kurdistan by starting Canvas?

HH: When we started Canvas about two years ago, the market in Kurdistan was following traditional marketing; few businesses had a digital presence even though most of their customers used social media platforms. Therefore, my Canvas co-founder, Rebaz, and I started Canvas with the goal of converting traditional marketing to digital marketing to help businesses reach online users through social media.

 
 
 

Staff Publication: Entrepreneurs in Iraq won’t end corruption but they will drive private sector reform

Originally published in The National by AEI Program Manager Emily Burlinghaus on September 5, 2018. 
 
Pioneers willing to brave the uncertainty have already driven change in business regulations.
 
 
Since Iraq’s federal elections on May 12, the country’s newly elected political parties have failed to restore any semblance of trust in the government.
 
The Iraqi Supreme Court did not ratify the results of the election until August 19, Parliament remained suspended for over two months before it finally met on September 3, and major protests have raged across central and southern Iraq all summer over a lack of basic services.
 
Iraqis’ trust in the government is unlikely to increase under the next administration; the historically low election turnout, candidates’ heavy reliance on patronage networks, and the previous administration’s public struggle to expel ghost soldiers, sentence officials to prison for embezzlement, and eliminate superfluous government positions attest to that.
 
Iraq today ranks 168 out of 190 countries on the World Bank’s 2018 Ease of Doing Business Report, down three spots from last year. And SMEs, which constitute about two-thirds of private sector employment in Iraq, are more likely than large firms to view regulations as inconsistent and also report the need to make informal payments to officials during tax inspections. In addition, they face lengthier delays in navigating import/export markets given their comparatively limited access to contacts, finance, market information and intermediaries.
 
Iraq’s business environment is a challenging landscape for entrepreneurs: limited legal infrastructure; deficits in business education; and a weak track record of independent private business deter both foreign investment and local innovation.
 
But pioneers willing to brave the uncertainty have already driven change in business regulations, licensing rules and access to education.
 
One such pioneer is responsible for the passage of the first e-commerce law in his province. Hevi Manmy, the founder of Bazary Online, a Kurdistan-region based delivery service similar to Amazon, encountered difficulties licensing his business given the absence of e-commerce laws and confusing and contradictory regulations governing imports of retail goods. His visit to the local government office in Sulaymaniyah requesting permission to start an e-commerce business in 2014 provided the catalyst for the province’s first e-commerce law.
 
Other entrepreneurs have worked around Iraq’s weak banking system by developing voucher systems and mobile payment options. For example, Zain Telecommunications, headquartered in Kuwait, launched Zain Cash, a service it describes as a “mobile wallet, money transfer, electronic bill payment, [and] funds disbursement service", in late 2015. Marwan Ahmed and Ammar Ameen, the founders of Mishwar and Miswag, respectively, Baghdad’s first grocery and retail delivery services, similarly navigated the absence of food safety laws and standardised payment terms to develop safe and successful online and mobile businesses.
 
Entrepreneurs, investors and educators have formed a small but growing network of training organisations, private equity funds and media platforms. Co-working spaces such as Tech Hub in Erbil and The Station in Baghdad provide workshops and facilities for innovators to bring their ideas to fruition. Five One Labs, Re:Coded and Code for Mosul equip locals and refugees with tech and entrepreneurship skills, while investment and private equity funds such as the Euphrates Fund, Northern Gulf Fund, and AFC Iraq Fund provide investment in return for stakes in Iraqi companies. Platforms such as Noah’s Ark and bite.tech provide online resources, networks and news tailored to Iraq’s entrepreneurial community.
 
Select universities have even defied the status quo of Iraq’s tertiary education system, which prioritises disciplines that often land students in the public sector, by dedicating funding to support entrepreneurship. The American University of Iraq, Sulaimani, recently inaugurated an entrepreneurship initiative and will offer an interdisciplinary minor in entrepreneurship--an extended course list focused on tech and private sector skills--for undergraduate students in Spring 2019. In Baghdad, Al-Mansour University College established an incubator for students and graduates with the help of Ramin Information Technology Solutions (Rits), the IT company that runs Noah’s Ark.
 
The problems deterring entrepreneurship are multi-faceted. Weak intellectual property protections, the monopolistic nature of existing private companies and poorly enforced financial reporting requirements allow the embattled public sector to retain its image as a stable and attractive employment option. Likewise, few legal mechanisms by which to penalise criminal activity in business dealings deter partnerships because potential entrepreneurs fear that partners could steal ideas or financial assets with impunity.
 
Nevertheless, a bloated bureaucracy and increasing awareness of public officials’ drain on public resources has prompted efforts to usurp the idea that public sector employment is the best option after graduation. Entrepreneurs are on track to stimulate the private sector because they operate outside the constraints of patronage networks and ethno-sectarianism that stifle government-led reform efforts.
 
The next administration would be wise to work with entrepreneurs to reform and update the country’s National Education Strategy, bolster financial literacy and entrepreneurship courses in high schools and universities and follow through on its obligations under the 15-year Private Sector Development Strategy.
 
The relationship will be a step toward alleviating public debt and distracting from the corruption scandals of recent administrations.
 

IRIS Report: Obstacles and Opportunities for Entrepreneurship in Iraq and the Kurdistan Region

 

In the context of the AUIS Entrepreneurship Initiative (AEI), this report, written by IRIS fellow Aaron Bartnick, points to the main obstacles and opportunities for entrepreneurs in Iraq and the Kurdistan Region. It also presents policy recommendations suggesting ways government institutions could help support entrepreneurship and small businesses.

The report draws insight from several months of interviews and meetings with stakeholders and members of the community in Sulaimani, Erbil, and Baghdad. It also incorporates the conclusions of a roundtable discussion hosted by IRIS, at AUIS, on June 19, 2017, with the support of IraqCom Technologies, Qaiwan Group, and the Iraq Middle Market Development Fund (IMMDF). The event brought together entrepreneurs, investors, industry leaders, and government officials from across the Middle East for a full-day discussion of the challenges facing Iraqi entrepreneurs and how all stakeholders can collaborate to build a sustainable private sector. 

Click here or on the image below to download the full report.

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