GEM Jordan National Report 2023/2024

Contents Chapter 2: Effect of the COVID-19 Pandemic31 Forewords H.E. Ahmad Hanandeh, the Minister of Digital Economy and Entrepreneurship The Ministry of Digital Economy and Entrepreneurship, in collaboration with the Centerfor Strategic Studies (CSS) at the University of Jordan, the German Jordanian University(GJU) and the German Agency for International Cooperation (GIZ), is pleased to presentthe Global Entrepreneurship Monitor (GEM) National Report-Jordan 2023/2024. Thisreport serves as a mirror reflecting the reality of entrepreneurship in our country, providinga comprehensive analysis of the entrepreneurial landscape based on reliable data andcoherent scientific methodology. Jordan has embarked on a path to become a centre for innovation and entrepreneurshipin the Middle East region. Our country possesses the necessary ingredients for economicsuccess, thanks to its rich history, talented and ambitious workforce and strategic locationon convergent continents. This report reaffirms our commitment to fostering a supportiveenvironment for entrepreneurship through the implementation of policies and initiativesto attract investment, support startups and create employment opportunities. As we moveforward, our vision is clear: to position Jordan as a regional leader in innovation, technologyand entrepreneurship while inviting investors and entrepreneurs from all over the world tojoin us in the journey of growth and prosperity. The Global Entrepreneurship Monitor (GEM) National Report-Jordan 2023/2024 aims toshed light on the reality of entrepreneurship in Jordan, identify the challenges it faces andhelp guide policies and strategies towards encouraging entrepreneurship and innovation,thereby contributing to economic and social development in Jordan. The comprehensiveview provided by this report on the state of entrepreneurship in our country, including ananalysis of achievements and challenges faced by the entrepreneurial landscape duringthe specified period, aims to stimulate national dialogue on ways to support entrepreneursand provide the appropriate environment for their prosperity. In recent years, entrepreneurship in Jordan has experienced a strong boost, as evidencedby the results of two surveys included in this report: the Adult Population Survey (APS)and the National Expert Survey (NES). In terms of the APS indicators, the report showsa significant improvement in the Total Early-Stage Entrepreneurial Activity (TEA) index,which is one of the key dimensions of this survey, with a leap from rank (34) in 2019 to rank(15) in 2023. This improvement is considered a remarkable achievement for Jordan, placingit second among Arab countries participating in the report. These positive results reflect the kingdom's commitment to supporting an entrepreneurialcultureand creating a conducive environment forstarting new ventures. Similarly, the index of knowingsomeone who has started a new business in Jordan hasalso seen a significant improvement, with an increase ofthe kingdom's ranking from (36) in 2019 to (20) in 2023.Thisincrease indicates a growing awareness amongindividuals in Jordan of the importance and opportunitiesof entrepreneurship, underscoring the kingdom's abilityto provide an attractive environment for entrepreneurs. Regarding the results of the National Expert Survey(NES), Jordan has also made significant progress, ranking(13th) in the Government Policies Index for Support andRelevance, achieving a progress of (4) positions from2019. Jordan has also advanced in the indexes relatedtoGovernment Policies on Taxes and Bureaucracy,Government Entrepreneurial Programs and Ease of MarketEntry, ranking(23rd), (18th)and(18th), respectively,demonstrating significant progress compared to 2019.This notable progress reflects the role of public policy forentrepreneurship and the national strategic plan (2021-2025) implemented by the Ministry aimed at creatinga friendly, nurturing and stimulating environment forentrepreneurship in the kingdom and removing barriersto ensure the maximisation of the economic potential ofthe Jordanian entrepreneurial ecosystem and its growth. In conclusion, we would like to thank all those whocontributed to preparing this national report, and welook forward to working with various relevant entities toachieve its objectives. We hope that this report will serveas an important reference for decision-makers, investors,supportinginstitutions,entrepreneurs and all thoseinterested in the field of entrepreneurship in Jordan. (GJU President) At the German Jordanian University (GJU), we strongly support national research activitiesin the fields of innovation, entrepreneurship and economic development. Throughthe Deanship of Innovation, Technology Transfer and Entrepreneurship at GJU and incooperation with the Ministry of Digital Economy and Entrepreneurship (MoDEE), theCenter for Strategic Studies (CSS) at the University of Jordan and the German Agency forInternational Cooperation (GIZ