Startup Response to the COVID-19

By Aymen Salman

Society and economies worldwide are experiencing an unprecedented external shock. The infection control measures taken in Iraq, as well as worldwide, to slow the spread of COVID-19, have included social distancing, the implementation of curfews and lockdowns, and have exerted a tremendous pressure on large parts of Iraq’s economy - especially the flowering ecosystem.

Most of the major players in the Iraqi ecosystem and the private sector admit that the country wasn’t prepared at all to face these significant and severe consequences that have dramatically damaged most Iraqi startups. We interviewed individuals involved in the entrepreneurial ecosystem in Iraq to determine their reaction to the crisis and to ask them about their opinions on the measures put in place to mitigate its economic effect. We spoke to Mohanad Jabbr, the founder of `Nofakha Company’.

Mohanad said that they saw the real need for an event and conference organization for Baghdadis; they started with just $300 and are now valued at $300,000 with seven employees. During their journey over the last three years, the team has followed their annual plans and tried to adapt to the Iraqi market that is known for its instability. Nevertheless, COVID-19 has had a huge impact on the ecosystem in Iraq however some start-ups have adapted to meet the challenge. Luckily the team at Nofakha had a plan B; they created a new line where they organized indoor celebrations and events, to celebrate birthdays parties and other events at the customer’s house. “But still, our sales reduced by almost 70%” Mohanad claims.

Additionally, we interviewed one of the most successful startups in Mosul; Dhay Antiques is a startup which was founded at the beginning of 2018 as a factory for replica antiquities mainly devoted to the production to sculptures and souvenirs inspired by the main figures and statues of Mosul’s heritage, many of which have been destroyed during the war against ISIS. Hussein Tawfiq, the founder of Dhay, said that despite multiple problems that they had faced in Mosul, and the lack of infrastructure, they managed to break even at the end of 2018. Until the COVID-19 crisis, their sales dropped by almost 80%, yet Hussein said that they took this crisis as an opportunity to work on their business model, branding of Dhay, and also on their marketing plan.

Human life is unquestionably more important and valuable than the economic status quo, and the measures taken to control the spread of COVID-19 in the world and Iraq are unquestionably important. It threatens the entire ecosystem in Iraq, which has already faced a lot of government neglect, as well as the absence of clear support from the private sector, which in turn multiples the effects of the Corona crisis on startups in Iraq.

The Station Foundation for Entrepreneurship

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