International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

Challenges Facing Entrepreneurship and MSME Sector in Jordan: An Overview
Shamsi S. Bawaneh, Hiba S. Al-Abbadi

Abstract
Purpose: This paper is an attempt to understand challenges facing entrepreneurship and MSMEs sector in Jordan at varying levels and from different perspectives. It draws conclusions based on key findings and observations gathered and analyzed throughout the course of preparing this paper. Ensuing conclusions that are then translate to some recommendations and ideas that could serve to enhance the entrepreneurial landscape in Jordan and provides some suggestions to support MSMEs sector in Jordan. Therefore, the aim of this research paper is to share major findings raise awareness of the importance of entrepreneurship to Jordan’s inclusive and sustainable growth and stimulate dialogue among policymakers, researchers, international organizations, donors, non-governmental organizations, and civil society regarding policies and initiatives to respond to these findings. Methodology: The data were generated by a semi-structured interviews conducted with 15 respondents of different occupations to gain a deep insight about the entrepreneurial landscape in Jordan from different perspectives. Findings: Jordan according to the Global Competiveness Index (2016) is an efficiency economy that has not yet transitioned into an innovation economy to make it ready to employ venture capital as a source to fund start-ups meaningfully. Respondent identified lack of cooperation between different people, organizations and institutions within the entrepreneurial landscape in Jordan as a key obstacle that dramatically slows down any progress in elevating the profile of entrepreneurial activity in Jordan. Other respondent identified lack of proper training and education as a major challenge. Also pointed out that lack of proper legal advisory is a challenge facing entrepreneurs. Expensive legal consultations impose a challenge with the scarcity of financial resource of most start-ups. Other respondent believes that one of the major challenges imposed on young entrepreneurs in Jordan is that decision makers do not have faith in them. They cannot imagine young people making responsible decisions or being able to start their businesses and run them successfully. Other respondent concluded saying it is not enough to have an innovative idea to start your business. She believes she would have saved her business if she had proper follow-up on implementing her idea by the support organization besides supervision, mentorship and guidance not only to start the business but also to sustain it throughout its lifecycle. Other respondent concluded overregulation especially in the food industry coupled with high taxation and high operational costs as major impediments to entrepreneurship in Jordan. Limitations of the research: This research study had the following limitations include the sample size, time and costs, and Lack of cooperation. Notwithstanding limitations set forth in the above, the researchers believe the study design was appropriate for purpose of this research paper and that the instrument was adequate were recommendations stemming from this research paper summarized at the last section, which may pave the way for further research.

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