Countries

Country Snapshot

Approximately 39% of Jordan’s population lives in the capital city of Amman, and around 70% of the population is less than 30 years of age, representing vast untapped economic resources. At 13%, Jordan has a relatively high unemployment rate, and approximately 90% of the unemployed fall into the 15-39 year age-group. Historically, a focus on job security and the lack of an entrepreneurial culture has meant that employment has been primarily focused in the public sector. In 2009, the service sector accounted for an estimated 66.5% of Jordan’s GDP and more than 75% of jobs. Thus, entrepreneurship is not deep-rooted in Jordanian society, but this is changing.

Recognizing the need for job and wealth creation in the ever-expanding youth sector, a number of initiatives aimed at stimulating entrepreneurship in the country have been established in the past two decades. Yet most of these initiatives are focused on micro-enterprise and smaller entrepreneurial ventures.

The lack of venture capital in Jordan has also meant that most entrepreneurial ventures rely on informal funding through family and friends – which is limited due to the country’s low per capita income level.

While the investment climate has witnessed a rapid change in recent years – with several investment banks and private equity firms operating for the first time in Jordan – they continue to be somewhat risk-averse. Consequently, many Jordanian start-ups and SMEs are finding it difficult to grow.