Promoting job opportunities for MSMEs

Project description

Title: GIZ Employment-oriented MSME Promotion Project
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 Digital Economy and Entrepreneurship
Overall term: 2018 to 2024

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Context

Jordan’s economy is dominated by a strong public sector which has traditionally been the country’s largest employer, accounting for more than 40 per cent of the workforce. However, the sector has seen a massive decline in recruitment in recent years.

At the same time, while Jordan's private sector provides opportunities for growth, innovation and employment, the density of micro, small and medium-sized enterprises (MSMEs) is considerably lower than in 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, an inflexible legal framework makes it hard for MSMEs to establish themselves in the market. As a result of these and other factors, the 2019 statistics show an unemployment rate of more than 19 per cent.

Objective

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

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Approach

The 'Employment-oriented MSME promotion' project aims to support Jordanian MSMEs in accordance with 'Jordan 2025 – A National Vision and Strategy' and the 'Jordan Economic Growth Plan 2018-2022'. It does so by focusing on food processing, information and communication technology (ICT) and tourism as sectors with considerable growth and employment potential.

The project supports the implementation of sectoral and market strategies to boost the prospects of MSMEs and the sectors altogether. Specifically, the project improves enterprise competitiveness, enhances MSME competences, and improves the business and investment climate in the selected sectors. The project also supports partner organisations to develop resources that improve access to financial and non-financial services for enterprises in Jordan. Furthermore, the project facilitates public-private dialogue, encouraging the active involvement of relevant stakeholders and helping to identify barriers to employment-oriented MSME-growth. 

Results

Since the start of the project

  • 30 new job opportunities have been created
  • Six policy recommendations have been suggested to national authorities with the support of the project
  • 25 MSME’s acquired new competencies in their field of activities
  • 10 service providers have been equipped with enhanced service delivery mechanisms
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