'MSMEs contribute to empowering women'

Micro, small and medium enterprises (MSME) in Jordan have contributed to the empowerment of women, especially those living in the governorates, according to a UNDP report. The 3rd National Human Development Report on Jordan, scheduled to be launched tomorrow, shows the MSMEs helped women find jobs in their governorates rather than having to move to the main cities or Amman to work in government entities. “The report showed that women are empowered and having an income made them feel they are contributors to home expenses, provided them with extra confidence, a new identity, credibility and gave them a new sense of social status as well,” UNDP Country Director Jacinta Barrins said. She noted that having the majority of MSMEs located in the governorates will help increase the number of women in the workforce, which currently stands at 15 per cent, compared to 28 per cent in the region. In a recent interview with The Jordan Times, Barrins said that the report surveyed 1,500 MSMEs in Jordan, 5 per cent of them owned by women. “Though 5 per cent is a very small rate compared to the global, which is 23 to 32 per cent, it is considered a very good start,” Barrins said, adding that the majority of women tend to own micro-enterprises. Currently, there are 113 micro-enterprises in Jordan. The report, which examines the role of micro, small and medium enterprises’ role in human development, showed that there are still discrepancies between the wages paid to men and women. Men are paid more in equivalent jobs, according to Barrins. The third national report also indicates that the greater the size of an organisation the higher the qualifications of employees. Figures show that, 32 per cent of workers in medium-size enterprises have primary education, 27 per cent have secondary education, and 26 per cent are BA holders. Numbers also show that 43 per cent of all owners of SMEs have BAs, with women having higher qualifications than men. Barrins also said the report shows that about 23 per cent of the employees in SMEs are young, in the 19-25 age brackets. The report which surveyed the 1,500 MSMEs out of 146,707 operating in Jordan, indicates that the SMEs in the country “are sizeable and there is a real opportunity to move forward”. However, it recommends coordination among the SMEs, creating an opportunity for them to cluster and provide a value of chain. It also recommends the need to review the tax laws and the role of the Ministry of Labour in monitoring SMEs. Other recommendations include looking at the minimum wage paid by these SMEs, as a quarter of the employees are paid less than the minimum wage in Jordan, which is JD150. According to the report, 80 per cent of the SMEs are located in Amman, Zarqa and Aqaba. For the purpose of the report, a technical committee made up of relevant experts from across Jordan defined small enterprises as those with fewer than 20 employees and medium enterprises as those with between 20 to 99 employees. Micro-enterprises were defined as those benefiting from micro-finance initiatives. The analysis of the report is based upon a questionnaire distributed to 1,500 SMEs and 113 micro-enterprises to generate primary, secondary and macro data, international rankings and best practices to provide a comprehensive view of the impact of MSMEs on human development.