Identification of Barrier Factors and Potential Solutions to SMEs Development among Jordanian Manufacturing Sector

Khalil Al-Hyari

Abstract


The purpose of this paper is to investigate the factors that hinder the growth and survival of SMEs in Jordan.The methodology adopted in this research is critical literature reviews, quantitative data collection throughquestionnaires to 241 SMEs 'owners and managers located in selected cities in Jordan. The results of the studyreveal that the most common constraints hindering SMEs growth and survival in Jordan are: lack of financialsupport; competition barriers; lack of qualified human resources; and rigid business rules and regulations. MostSMEs agreed that government should develop program that is strongly required as a strategic move to emergethe economy and dedicate more efforts to eliminate SMEs barriers, like encourage the financial institutes andbanks to provide suitable credit facilities to this sector. Legal infrastructure such as privacy law, e-signature andknowledge acquisition law, facilitate SME with technology through soft loan to buy supporting technology fortheir business, and many supporting program needed by SMEs. The significance of this study stems from thefact that very few studies have explored the issue of factors constraining the growth and survival of SMEs inJordan. Also, it offers guidance for future research in a field of research that is still in its infancy.


Full Text: PDF DOI: 10.5539/ijbm.v8n24p132

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International Journal of Business and Management   ISSN 1833-3850 (Print)   ISSN 1833-8119 (Online)

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