Shock to A or shock to K? The Role of Capital Grants vs. Digitalization in Firm Growth and Specialization

Small and medium enterprises (SMEs) are central to employment and recovery in fragile, post‑conflict contexts. This scoping project studies how capital grants and digital organisational support reshape firm organisation, task specialisation, and job quality in Iraqi SMEs. Building on a partnership with the UN, we combine survey data on time‑use (labour and capital), supplier relationships, and managerial practices with a theory model that links easing credit constraints to re‑organisation and growth. The scoping activities will refine survey instruments, test data collection protocols, and pilot analysis workflows (including LLM‑assisted cleaning). We will also prepare the sampling frame and implementation plan for a future RCT comparing a capital‑grant arm, a digital shock arm (AI HR/chatbot + digital accounting), both, and control. Outputs include refined tools, pre‑analysis plans, and a calibrated framework to translate lessons to the U.S./OECD context.

Key facts

Principal Investigator: Razan Amine
Affiliation: PhD student, University of Cambridge / Yale University Y-Rise