Country Paper For TRAINING PROGRAME “ ENHANCING ENTREPRENEURSHIP IN SME DEVELOPMENT AND EXPORT CONSORTIA ” Nancy Momany, Eng. Enterprise Development Officer Jordan Enterprise Development Corporation (JE) Jordan

Jordan Basic Facts Basic Facts Jordan Economy Jordan Economy SME’s in Jordan SME’s in Jordan Jordan Enterprise Development Corporation (JE) Jordan Enterprise Development Corporation (JE)

The Hashemite Kingdom of Jordan is a constitutional monarchy, ruled since 1999 by His Majesty King Abdullah II The Hashemite Kingdom of Jordan is a constitutional monarchy, ruled since 1999 by His Majesty King Abdullah II Jordan- Basic Facts

Jordan is located in the heart of the Middle East, Northwest of Saudi Arabia, Jordan is located in the heart of the Middle East, Northwest of Saudi Arabia, South of Syria, Southwest of Iraq, East of Occupied Palestine. South of Syria, Southwest of Iraq, East of Occupied Palestine. Jordan- Basic Facts

Capital: Amman Population: 5,480,000 Area: 89,342 km2 Languages: Arabic Religions: Sunni Muslim (92%) Sunni Muslim (92%) Shia Muslims(2%) Shia Muslims(2%) Christian (6%) Christian (6%) Jordan- Basic Facts

Roman amphitheater Jordan- Tourism

Petra Jordan- Tourism

Jerash Jordan- Tourism

Wadi Rum Jordan- Tourism

Economic Indicators Jordan Economy Indicator Indicator GDP (US$bm) GDP per capita (US$) Inflation Rate Export of Goods & Services (US$m) Import of Goods & Services (US$m)

Major Export products Jordan Economy Phosphates Phosphates Potash Potash Apparel & Clothing Accessories Apparel & Clothing Accessories Fertilizers Fertilizers Pharmaceutical Products Pharmaceutical Products Edible Vegetables Edible Vegetables

Major Import products Jordan Economy Mineral Fuels & Oils Mineral Fuels & Oils Vehicles Vehicles Machinery Machinery Electronic Equipment Electronic Equipment Wheat Wheat Sugar Sugar Meat Meat

SME’s in Jordan Definition and Features No. of EmployeesCapital Investment (JD)Calcification 1-9 Less than 30,000Micro ,000Small ,000Medium 250 and above 30,000Large

Related Public & Private Organizations Ministry of Industry and Trade Ministry of Industry and Trade Chambers of Industry Chambers of Industry The National Fund for Enterprise Support (NAFES) The National Fund for Enterprise Support (NAFES) Jordan Enterprise Development Corporation (JE) Jordan Enterprise Development Corporation (JE) The USAID Jordan Economic Development Program (SABEQ) The USAID Jordan Economic Development Program (SABEQ) Business Development Center (Tatweer) Business Development Center (Tatweer) Development and employment fund Development and employment fund SME’s in Jordan

Related Public & Private Organizations Jordan investment board Jordan investment board Free - Zones Corporation Free - Zones Corporation Vocational Training Corporation Vocational Training Corporation Jordan industrial Estates Corporation (JIEC) Jordan industrial Estates Corporation (JIEC) Industrial Development Bank Industrial Development Bank The Jordan Loan Guarantee Corporation The Jordan Loan Guarantee Corporation SME’s in Jordan

Related Law’s & Policies Ministry of Industry and Trade law 18/1998 Ministry of Industry and Trade law 18/1998 Chamber of Industry law 10/2005 Chamber of Industry law 10/2005 Jordan investment board law 18/1991 Jordan investment board law 18/1991 Investment law 68/2003 Investment law 68/2003 Jordan Enterprise Development Corporation law 33/2008 Jordan Enterprise Development Corporation law 33/2008 Development and employment fund law 33/1992 Development and employment fund law 33/1992 SME’s in Jordan

Financial Assistance for SME Development There are a lot of governmental, semi-government, NGOs, private and international programs. working to facilitate or ease access to finance for SMEs There are a lot of governmental, semi-government, NGOs, private and international programs. working to facilitate or ease access to finance for SMEs Most SMEs lack basic financial management skills and systems Most SMEs lack basic financial management skills and systems SME’s in Jordan

Main Challenges Labialization of the market. Labialization of the market. Competition from local and external suppliers. Competition from local and external suppliers. Meeting the requirement of export markets. (specification of the products, rules of origin,…) Meeting the requirement of export markets. (specification of the products, rules of origin,…) Deploying new technologies. Deploying new technologies. Employing skilled labors. Employing skilled labors. SME’s in Jordan

Main Problems Access to new markets. Access to new markets. Lack of skilled labors. Lack of skilled labors. Lack of business planning Lack of business planning High competition from imported goods especially in prices. High competition from imported goods especially in prices. Financing and finding financial resources. Financing and finding financial resources. Deploying new technologies. Deploying new technologies. SME’s in Jordan

Jordan Enterprise Development Corporation (JE) Vision To be Jordan's leading institution for developing, caring for and supporting Enterprises in the Kingdom, thus improving their competitiveness and growth nationally and globally, promoting their products and services in targeted international markets, increasing investments, export volume and export opportunities.

Jordan Enterprise Development Corporation (JE) Objectives  Upgrading Enterprises by providing tailored business solutions that respond to verifiable needs.  Increasing Jordan’s exports of goods and services, by utilizing preferential trade opportunities.  Continuously improving Enterprise/product competitiveness to meet the needs of a dynamic global market.

Jordan Enterprise Development Corporation (JE) Departments Jordan Upgrading and Modernization Program Jordan Upgrading and Modernization Program Export Promotion Directorate Export Promotion Directorate Export Services Directorate Export Services Directorate Cross-cutting Directorate Cross-cutting Directorate

JUMP What is JUMP? The first national independent programme established by the Jordanian government to enhance the SME’s competitiveness Jordan Upgrading & Modernization Program is The first national independent programme established by the Jordanian government to enhance the SME’s competitiveness Works as a focal point (umbrella) for all industrial upgrading programs & activities

JUMP Vision To transform, integrate and bridge the Jordanian industry within the global economy Mission Improve and sustain the competitiveness of Jordanian enterprises through building their managerial capabilities and productive capacities.

JUMP Objectives Enhance productivity, improve product quality and reduce unit cost Enhance productivity, improve product quality and reduce unit cost Encourage companies to use benchmarking Encourage companies to use benchmarking Increase market share and assist in developing new non-traditional export markets Increase market share and assist in developing new non-traditional export markets Develop strategic directions driven by markets practices. Develop strategic directions driven by markets practices. Enhance capabilities of human resources Enhance capabilities of human resources Encouraging companies to increase value added Encouraging companies to increase value added Sector development strategy Sector development strategy

JUMP Services Establishment of Export Consortiums Faculty For Factory Other Initiatives & Services Main Functions Other Functions Energy Saving Projects Sectoral Services Full Scale Diagnostic Studies National Linkages Program Business Plans

JUMP Eligibility Criteria Manufacturing or related services  Manufacturing or related services  Jordanian Registered Company with min. 10 Jordanian employees  At Least 2 Years operating with audited financial statements  Good Financial Status and high potentials for growth

JUMP Mechanism Pre-Diagnostic Study Visit Conduct Study & Upgrading Plan Present summery to the executive committee Bidding & Approval Phase Evaluation of studies Application Request for Assistance Sign Agreement & start implementation

National Linkage Program Mechanism Visit large manufacturing companies to identify potential products & potential suppliers Pre-Diagnostic Study Visit to potential suppliers Check Eligibility Criteria, Company Level& Prepare Pre- Diagnostic Study Report Potentials for backward linkages Good Financial Status Internal Committee Meeting for the acceptance of the company and the linkages case Prepare a development plan to upgrade the supplier's capacities & Capabilities to meet the buyer's requirements Upgrading Plan Approval & Implementation

Useful links Ministry of Industry and Trade Ministry of Industry and Trade Amman Chamber of Commerce Amman Chamber of Commerce Amman Chamber of Industry Amman Chamber of Industry Jordan Investment Board Jordan Investment Board The American Chamber of Commerce in Jordan The American Chamber of Commerce in Jordan Jordan Enterprise Development Corporation Jordan Enterprise Development Corporation Jordan Upgrading & Modernization Programme Jordan Upgrading & Modernization Programme

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