Small and Medium Enterprises in Jordan: A Pillar of the Economy and a Driver of Sustainability
Jordan is an upper-middle-income country that relies heavily on small and medium enterprises (SMEs) to fuel its economy. In 2021, SMEs accounted for a staggering 95% of all registered businesses, contributed 50% to the country’s GDP, and employed nearly 60% of the workforce. These numbers highlight just how vital SMEs are to Jordan’s economic landscape, making their integration into sustainable growth strategies essential.
In Jordan, SMEs are categorized into small enterprises, which have up to 19 employees, and medium-sized enterprises, which employ between 20 and 99 individuals. Support for SMEs began back in the 1970s with a five-year economic development strategy aimed at promoting local products as alternatives to imports. Over the years, various organizations have emerged to support these businesses, focusing on both economic growth and community development.
Despite their importance, Jordanian SMEs face several challenges that hinder their growth. Many struggle with limited resources and a lack of experience with new technologies. Decision-making is often centralized, with senior management involved in nearly every choice, leaving little room for strategic planning. Additionally, many SMEs find it difficult to secure financing and often lack diverse funding options, making it hard for them to expand and thrive.
