Socio-Economic Challenges and Jordan's Foreign Policy

From Survival Strategy to Innovation: Creating an Enabling Business Environment for Micro, Small and Medium Enterprises in Jordan
Analysis09.12.2019Sophie Schmid

This policy paper was written and first published in the course of the Workshop "Socio-Economic Challenges and Jordan's Foreign Policy: Employment, Trade and International Cooperation" conducted by the DGAP (German Council on Foreign Relations) in mid 2019.

Within the category of Employment, this paper closely examines the various administrative and financial hurdles and hindrances Jordanian entrepreneurs face when wanting to set up and expand a business in the Kingdom. From restrictive regulations and unfavorable laws, deficiencies in funding and financing as well as a tax system which promotes stagnation rather than productivity, all are factors contributing to a highly constrained business environment.

Finally, this policy paper offers several policy recommendations directed at high-ranking Jordanian and international stakeholders - all characterized by the idea of creating incentives for Jordanian entrepreneurs in order to improve both the quantity and the quality of entrepreneurship in the country. All measures focus on the great, but still vastly untapped potential of Jordanian MSMEs to form the backbone of the Jordanian private sector.

This policy paper was written by Sophie Schmid, Regional Project Manager at FNF MENA.