Expanding access to finance for Jordan's small businesses

Context

Micro, small and medium-sized enterprises (MSMEs) drive Jordan’s economy, representing over 99 per cent of businesses and providing 70 per cent of private employment. Despite their importance, MSMEs struggle to access finance, with only 10 per cent of loans from banks and microfinance institutions reaching them. Most businesses must rely on limited resources, stunting their growth and job creation. Women entrepreneurs face even greater hurdles, often receiving smaller loans with higher interest rates.

While innovative financial technologies promise solutions, three critical barriers remain: inadequate regulations, low financial literacy among small business owners, and a lack of tailored financial products.

Objective

Growth-oriented MSMEs across Jordan can readily access and effectively utilise innovative financial services tailored to their needs.

Approach

The project uses a comprehensive three-pillar approach targeting the regulatory framework, financial service delivery, and MSME skill development:

1. Collaborating with the Central Bank of Jordan to develop a conducive regulatory environment that facilitates innovative MSME financing solutions;
2. Working with diverse financial institutions to catalyse the development and deployment of tailored financial products and services for MSMEs;
3. Partnering with training providers to enhance MSMEs' financial management skills and their ability to effectively utilise innovative financial services.

The project emphasises addressing financial challenges specific to women-led MSMEs, promoting tailored financial products and services that support their needs and growth potential.

Last update: March 2025