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

Country Paper ForCountry Paper For TRAINING PROGRAME “ENHANCING TRAINING PROGRAME “ENHANCING ENTREPRENEURSHIP IN SME DEVELOPMENT AND ENTREPRENEURSHIP IN SME DEVELOPMENT AND EXPORT CONSORTIA”EXPORT CONSORTIA”

Nancy Momany, Eng.Nancy Momany, Eng.

Enterprise Development OfficerEnterprise Development Officer Jordan Enterprise Development Corporation (JE)Jordan Enterprise Development Corporation (JE)

JordanJordan

JordanJordan Basic FactsBasic Facts Jordan EconomyJordan Economy SME’s in JordanSME’s in Jordan Jordan Enterprise Development Jordan Enterprise Development Corporation (JE)Corporation (JE)

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

Jordan- Basic FactsJordan- Basic Facts

Jordan is located in Jordan is located in the heart of the the heart of the Middle East, Middle East, Northwest of Saudi Northwest of Saudi Arabia, Arabia,

South of Syria, South of Syria, Southwest of Iraq, Southwest of Iraq, East of Occupied East of Occupied Palestine. Palestine.


Capital: AmmanCapital: AmmanPopulation: 5,480,000Population: 5,480,000Area: 89,342 km2Area: 89,342 km2Languages: Arabic Languages: Arabic Religions:Religions: Sunni Muslim (92%)Sunni Muslim (92%) Shia Muslims(2%)Shia Muslims(2%) ChristianChristian (6%) (6%)


Roman amphitheater

Jordan- TourismJordan- Tourism

Petra


Jerash


Wadi Rum


Economic Indicators

Jordan EconomyJordan Economy

IndicatorIndicator2004200420052005200620062007200720082008

GDP (US$bm)GDP (US$bm)8091809189548954105211052111721117211242412424

GDP per capita GDP per capita (US$)(US$)

1512151216361636187818782049204914831483

Inflation RateInflation Rate2.62.63.53.56.36.35.45.47.57.5

Export of Goods & Export of Goods & Services (US$m)Services (US$m)

2753275330503050369036904041404155655565

Import of Goods & Import of Goods & Services (US$m)Services (US$m)

514851486606660672757275853985391052010520

Major Export products


PhosphatesPhosphates PotashPotash Apparel & Clothing AccessoriesApparel & Clothing Accessories FertilizersFertilizers Pharmaceutical Products Pharmaceutical Products Edible VegetablesEdible Vegetables

Major Import products


Mineral Fuels & OilsMineral Fuels & Oils VehiclesVehicles MachineryMachinery Electronic EquipmentElectronic Equipment WheatWheat Sugar Sugar MeatMeat

SME’s in JordanSME’s in JordanDefinition and Features

Calcification

Capital Investment (JD)

No. of Employees

Micro Less than 30,0001-9

Small30,00010-49

Medium30,00050-249

Large30,000250 and above

Related Public & Private OrganizationsRelated Public & Private Organizations

Ministry of Industry and TradeMinistry of Industry and Trade Chambers of IndustryChambers of Industry The National Fund for Enterprise Support The National Fund for Enterprise Support

(NAFES)(NAFES) Jordan Enterprise Development Corporation (JE)Jordan Enterprise Development Corporation (JE) The USAID Jordan Economic Development The USAID Jordan Economic Development

Program (SABEQ)Program (SABEQ) Business Development Center (Tatweer)Business Development Center (Tatweer) Development and employment fundDevelopment and employment fund

SME’s in JordanSME’s in Jordan

Related Public & Private OrganizationsRelated Public & Private Organizations

Jordan investment boardJordan investment board Free - Zones CorporationFree - Zones Corporation Vocational Training CorporationVocational Training Corporation Jordan industrial Estates Corporation (JIEC) Jordan industrial Estates Corporation (JIEC) Industrial Development BankIndustrial Development Bank The Jordan Loan Guarantee CorporationThe Jordan Loan Guarantee Corporation


Related Law’s & PoliciesRelated Law’s & Policies

Ministry of Industry and Trade law 18/1998Ministry of Industry and Trade law 18/1998 Chamber of Industry law 10/2005Chamber of Industry law 10/2005 Jordan investment board law 18/1991Jordan investment board law 18/1991 Investment law 68/2003Investment law 68/2003 Jordan Enterprise Development Corporation law Jordan Enterprise Development Corporation law

33/200833/2008 Development and employment fund law 33/1992Development and employment fund law 33/1992


Financial Assistance for SME DevelopmentFinancial Assistance for SME Development

There are a lot of governmental, semi-There are a lot of governmental, semi-government, NGOs, private and international government, NGOs, private and international programs. working to facilitate or ease access programs. working to facilitate or ease access to finance for SMEsto finance for SMEs

Most SMEs lack basic financial management Most SMEs lack basic financial management skills and systems skills and systems


Main ChallengesMain 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. Meeting the requirement of export markets.

(specification of the products, rules of origin,…)(specification of the products, rules of origin,…) Deploying new technologies.Deploying new technologies. Employing skilled labors.Employing skilled labors.


Main ProblemsMain Problems

Access to new markets.Access to new markets. Lack of skilled labors.Lack of skilled labors. Lack of business planningLack of business planning High competition from imported goods High competition from imported goods

especially in prices.especially in prices. Financing and finding financial resources.Financing and finding financial resources. Deploying new technologiesDeploying new technologies..


Jordan Enterprise Development Corporation (JE)

VisionVision

To be Jordan's leading institution for To be Jordan's leading institution for developing, caring for and supporting developing, caring for and supporting

Enterprises in the Kingdom, thus improving Enterprises in the Kingdom, thus improving their competitiveness and growth nationally their competitiveness and growth nationally and globally, promoting their products and and globally, promoting their products and services in targeted international markets, services in targeted international markets,

increasing investments, export volume and increasing investments, export volume and export opportunities. export opportunities.


ObjectivesObjectives

Upgrading Enterprises by providing tailored Upgrading Enterprises by providing tailored business solutions that respond to verifiable needs.business solutions that respond to verifiable needs.

Increasing Jordan’s exports of goods and Increasing Jordan’s exports of goods and services, by utilizing preferential trade opportunities.services, by utilizing preferential trade opportunities.

Continuously improving Enterprise/product Continuously improving Enterprise/product competitiveness to meet the needs of a dynamic competitiveness to meet the needs of a dynamic global market. global market.


DepartmentsDepartments Jordan Upgrading and Modernization ProgramJordan Upgrading and Modernization Program Export Promotion Directorate Export Promotion Directorate Export Services Directorate Export Services Directorate Cross-cutting DirectorateCross-cutting Directorate

JUMP

What is JUMPWhat is JUMP??

Jordan Upgrading & Modernization Program is The The first national independent programme established first national independent programme established by the Jordanian government to enhance the by the Jordanian government to enhance the SME’s competitivenessSME’s competitiveness

Works as a focal point (umbrella) for all industrial Works as a focal point (umbrella) for all industrial upgrading programs & activitiesupgrading 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 Enhance productivity, improve product quality and

reduce unit cost reduce unit cost Encourage companies to use benchmarkingEncourage companies to use benchmarking Increase market share and assist in developing new Increase market share and assist in developing new

non-traditional export markets non-traditional export markets Develop strategic directions driven by markets Develop strategic directions driven by markets

practices. 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 strategySector development strategy

JUMP

Services

Establishment of Export Consortiums

Faculty For Factory

Other Initiatives & Services

Mai

n F

unct

ions

Oth

er F

unct

ions Energy Saving Projects Sectoral Services

Full Scale Diagnostic Studies

National Linkages Program

Business Plans

JUMP

Eligibility Criteria Manufacturing or related servicesManufacturing or related services

Jordanian Registered Company with min. 10 Jordanian Jordanian Registered Company with min. 10 Jordanian employeesemployees

At Least 2 Years operating with audited financial At Least 2 Years operating with audited financial statementsstatements

Good Financial Status and high potentials for growthGood 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

MechanismVisit 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 linksUseful links Ministry of Industry and Trade Ministry of Industry and Trade www.mit.gov.jo Amman Chamber of Commerce Amman Chamber of Commerce www.ammanchamber.org Amman Chamber of Industry Amman Chamber of Industry www.aci.org.jo Jordan Investment Board Jordan Investment Board www.jordaninvestment.com The American Chamber of Commerce in Jordan The American Chamber of Commerce in Jordan

www.jaba.org.jo Jordan Enterprise Development Corporation Jordan Enterprise Development Corporation

www.jedco.gov.jo Jordan Upgrading & Modernization Programme Jordan Upgrading & Modernization Programme

www.jump.gov.jo

JordanJordan

Thank You Thank You

Documents

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