Capacity Development of Micro and Small Enterprises through ICT

Capacity Development of Micro and Small Enterprises through ICT

Project ID: 00056289Service Line: Poverty ReductionSector: Private Sector DevelopmentMDG Focus: Poverty ReductionExecuting Partner: NetCorps Jordan
Location: Amman - Jordan
Duration: August 2007 - January 2009 Financing in US$: UNDP: 120,000Ministry of Information and Communications Technology: 87,571Microsoft: 85,000 (parallel)Contact: Mr. Rania Tarazi, UNDP Poverty AnalystMr. Rami Al-Karmi, NetCorps CEO
Background: In February 2006, the Government of Jordan released its National Agenda according to which, 23% (1.3 million Jordanians) of the population will reach working age in the coming 10 years. However the rapid growth rate of the Jordanian economy in the recent years, has not been accompanied by the creation of adequate jobs that can absorb the annual inflow of job seekers. Unemployment in Jordan is estimated around 14%: 25% for females and 11.9% for males. It is highest among the youth, from 15-24 years of age regardless of gender as about 50% of unemployed females and 55% of unemployed males fall into this age group. Small and Medium Enterprises (SMEs) account for the vast majority of industrial enterprises in Jordan, but the SME sector has traditionally been hampered by poor business-development opportunities, inadequate entrepreneurial skills and a lack of partnership initiatives. Micro-enterprises, especially those run by the poor are constrained by a range of factors such as lack of resources, limited and inappropriate skills, knowledge and experience in running a viable business, lack of mobility which limits access to markets and limited exposure to business models. The results of an assessment conducted by NetCorps Jordan, confirmed that Small and Medium Enterprises (SMEs) make up the majority of Jordan’s economy with more than 98% of the Jordanian enterprises consisting of less than 20 employees. Research was also conducted to determine the needs of the MSEs and results highlighted sales management as a specific area of weakness which, if strengthened, could have a great impact on increasing sales, revenue, and sustainability. Therefore, building the capacities of these MSEs by providing them with relevant training and assistance was identified as an essential step in order to improve the Jordanian economy and reduce unemployment.
Objectives:Strengthen the capacities of Micro/SMEs through ICT at selected local communities, and provide local youths with the opportunity to gain practical work experience in business management. Progress and Achievements:The project was signed in August 2007 and management arrangements are being set up.