Micro-companies make up 89.7% of total private sector entities — study

Expansion of CBJ’s financing of SME’s recommended

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AMMAN — The Economic and Social Council, in cooperation with CARE International in Jordan, launched a study titled “Micro, small and medium enterprises initiative”, a local media outlet reported on Wednesday.اضافة اعلان

The study, which was conducted on 535 establishments, aims to find an umbrella that contributes to developing a supportive investment environment for the micro, small, and medium-size companies in the Kingdom, and redefine it by working on production clusters.

The study followed the descriptive and analytical approach by surveying the opinion of the owners of micro, small, and medium-size enterprises, using a questionnaire. It showed that 99.5 percent of the private sector companies in Jordan are micro, small, and medium enterprises; of these, micro companies make up 89.7 percent, small companies 8.1 percent, and medium companies 1.7 percent. Large companies make up 0.5 percent.

On the sectoral distribution side, the study showed that 56 percent of projects work in the trade sector, 29.3 percent in the services sector, 13 percent in the industrial sector, while 1.7 percent in the transportation, construction, finance, banking, and insurance sectors.

The study indicated that there are many difficulties that prevent achieving the desired results and achieving growth and expansion of projects, such as a multiplicity of regulatory and legal legislation and of official and non-official bodies to which projects are subjected to from the stage of establishment, alongside licensing to financing, oversight and subsequent support.

The study recommended the expansion of the Central Bank’s programs concerned with financing small and medium enterprises, due to their significant positive impact on the sector, easing the guarantees required for obtaining loans, providing direct and indirect tax exemptions, and enabling small and medium enterprises to participate in government tenders.

The study also recommended allocating a unified budget at a Kingdom level to which private sector companies and international and government supporting bodies contribute to finance support programs for these companies, and strengthening the role of commercial banks and microfinance institutions by providing adequate support for projects.

A partnership was signed between the Economic and Social Council and CARE International in Jordan last year to implement the study.

Attending the launch of the study were council Chairman Musa Sheiwi, head of CARE in Jordan Ammar Abu Ziyad, experts and specialists in the public and private sectors, and project owners, in person and through the video communication technology.

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