Assessment of Small Enterprise Financing ,Case of Jordan

Abdul Aziz Farid Saymeh, Dr. Sulieman Abu Sabha,

Volume 14 Issue 2

Global Journal of Management and Business

Study Importance: Small enterprises represent the most important pillars of economic development of the most countries of the world, these enterprises account for the highest percentage among all types of enterprises that contribute to the economic productivity. Small enterprises have been the focus and attention of most governments in developing countries due to the role they play in increasing production and employment in addition to their active contribution in increasing the rates of economic growth and national income and their support of the GNP of many countries. Research importance relies in identifying the most obstacles facing small businesses from small entrepreneurs perspective. Study Purpose: That small enterprises form the backbone of the economy in all countries of the world, without exception. This research is an attempt to provide some solutions that may help in addressing the financing problem of small projects, especially in developing countries, identification of the main obstacles that small entrepreneurs face in financing their small projects. Study Results: This study sought to identify the most important constraints faced by small entrepreneurs in Jordan as well as assessing present methods of financing these enterprises, through a field study by using a purposeful sample of the owners of these enterprises. The researcher has analyzed 345 questionnaires and through the analysis, a set of results have been reached and are summarized as follows: 􀀐 Insufficient amount of funding of these enterprises. 􀀐 Militancy in demanding guarantees in return for granting the loans. 􀀐 The high interest rates of these loans were the most important challenges faced by entrepreneurs of the study sample. Based on the results of the study, the researcher recommends the need for the financial institutions to initiate a special policy to encourage entrepreneurs carry out their creative ideas and innovations via small enterprises and this encouragement will