Report assesses Jordan’s SME policies and programmes

AMMAN — The European Union Delegation to Jordan announced in a press statement on Wednesday the results of an assessment regarding small- and medium-sized enterprises’ (SMEs) policies in Jordan and eight other economies in the Middle East and North Africa region.

According to the press release, key stakeholders discussed reform priorities identified in a new report: “SME Policy Index: The Mediterranean Middle East and North Africa 2014, Implementation of the Small Business Act for Europe”. 

Instigated by the European Commission, the assessment was coordinated by the Organisation for Economic Cooperation and Development (OECD) in cooperation with the European Training Foundation (ETF) and in consultation with the European Investment Bank.

Based on the “Small Business Act” for Europe (SBA), a comprehensive SME policy framework adopted by the European Union (EU) to promote SMEs, it provides policy recommendations to governments to help unleash the potential of their SMEs. 

The results of the assessment, emerging from consultations with governments, public institutions, private sector organisations and civil society, have led to several recommendations.

“Jordan should continue to build a knowledge economy, attract inward-investment, lift constraints faced by enterprises operating in leading, non-energy intensive sectors such as the pharmaceutical industry, medical services and ICT, streamline administrative requirements and introduce regulatory impact analysis to help SMEs to grow,” the press statement listed as the first recommendation.

The second priority related to access to finance. 

“Strengthening creditor rights would reduce collateral requirements and open access to bank financing to a larger number of SMEs while the establishment of business angel networks would provide equity financing to small business ventures,” it said.

“Furthermore, Jordan could expedite the approval of the new bankruptcy law and monitor and evaluate its effectiveness once it is implemented,” the statement added.

 It also recommended a prompt adoption and efficient implementation of an export promotion strategy and more participation in international networks that would benefit exporting SMEs. 

“Stronger coordination between ministries, the private sector and non-governmental organisations would help to develop entrepreneurial learning for all levels of education and to promote women entrepreneurship,” the report continued.

It concluded that a systematic training needs analysis would help policy makers make informed decisions in the area of skills development.

To support the government in implementing reforms in priority areas identified in the report, such as international networks and partnerships,  a follow-up training will be organised in Amman next month.