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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