Determinants of the success of micro-enterprises in the private sector in northern Syria

Executive Summary
The study aimed to identify the determinants governing the success of micro-enterprises, diagnose their reality in northern Syria, and determine the degree of influence each of these determinants has on the success or failure of micro-enterprises. Furthermore, it attempted to identify the key players involved in these projects and explore their roles and contributions in this regard.
Regarding governance, northern Syria lacks specific laws regulating micro-enterprises. There is disparity across regions in the licensing mechanism for these projects and the level of tax evasion. Furthermore, local authorities lack a clear, well-defined strategy for developing these projects, and the level of support provided by them varies across regions depending on their technical, financial, and advisory capabilities. The study also noted the prevalence of monopoly and counterfeiting, the absence of trademark registration, and the emergence of discrimination in the provision of public services to owners of these projects in some regions. On the economic and financial front, the general investment climate in these regions, which remains substandard, poses a significant obstacle to attracting investments at various levels. This is due to the high level of risk associated with these types of projects, which are largely concentrated in the trade and services sectors. Furthermore, a number of challenges to the success of these projects exist, including limited financing, monopolistic competition, unregulated imports, the absence of support for local producers in both the production and export phases, the high cost and low availability of raw materials, and a clear tendency by local authorities to favor medium- and large-scale investments at the expense of small and micro-enterprises.
On the social and security front, individuals are increasingly turning to establishing micro-enterprises as a result of the growing awareness of their importance across all segments of society, as a source of income, a means of alleviating unemployment and poverty rates, and a catalyst for economic growth. Local communities vary in their support for these projects, and discrimination exists in their treatment, based on considerations specific to the owners of these projects, such as gender, ethnicity, regional background, and other relevant characteristics. This phenomenon varies in intensity and persistence from one region to another, depending on several factors, such as competition, customs and traditions, the size of the local market, and the extent of interaction between ethnic groups within the local community. Meanwhile, security remains a challenge for entrepreneurs, with security stability varying between different regions. There are a number of determinants related to the characteristics of micro-enterprises that govern their success. The economic challenges facing northern Syria continue to impose themselves on the feasibility of establishing these projects and the willingness of individuals to establish them. This is in addition to the low level of experience, administrative and technical skills, and other skills among a significant percentage of these entrepreneurs. This poses a significant challenge to their sustainability, as most of them rely on the use of relatively low-level technology, which increases their operating costs. Furthermore, these projects are concentrated across sectors and regions for several reasons, with a gap between micro-enterprises supported by civil society organizations and those established by the private sector in terms of success rates, sustainability, and the extent of support provided.