Promoting MSMEs

Project description

Title: Employment-oriented MSME Promotion
Commissioned by: Federal Ministry for Economic Cooperation and Development (BMZ)
Country: Jordan
Lead executing agency: Ministry of Industry, Trade and Supply, Ministry of Tourism and Antiquities, Ministry of Information and Communications Technology
Overall term: 2018 to 2022

Workshop with Jordanian accelerators to strengthen data-driven management of their programs

Context

Jordan’s economy is dominated by a strong public sector. Traditionally, the largest employer in Jordan, accounting for 41 per cent of the workforce, the public sector has seen a massive decline in recruitment in recent years. Latest official statistics indicate an unemployment rate of 18.3 per cent in 2017 in Jordan.

At the same time, Jordan's private sector provides opportunities for growth, innovation and employment. Jordan’s density of micro, small and medium enterprises (MSMEs) is considerably lower than that of other higher middle-income countries. MSMEs often fail to compete with foreign companies, partly due to a lack of qualified personnel and limited access to business development services. In addition, protracted registration and approval procedures as well as a rigid legal framework make it hard to establish new enterprises and to invest in MSMEs in Jordan.

Objective

The opportunities for employment-oriented growth among MSMEs in Jordan have improved.

Signing of the implementation agreement with Jordanian Ministry of Industry, Trade and Supply.

Approach

The project supports the implementation of sectoral and market strategies to boost the prospects of MSMEs and the sectors altogether. Specifically, the project aims at improving enterprise competitiveness, enhancing the competencies within MSMEs and improving the business and investment climate in three selected sectors: tourism, information and communication technology (ICT) and food processing. Another goal is to support partner organisations to develop information platforms that improve access to financial and non-financial services for enterprises in Jordan. Furthermore, the project will facilitate public-private dialogue, encouraging the active involvement of relevant stakeholders and helping to identify barriers to employment-oriented MSME growth.