ENTREPRENEURSHIP IN JORDAN: REGIONAL ANALYSIS AND ENVISAGED ROLE

Year 2015, Volume: 2 Issue: 3, 323 - 333, 06.11.2015

Ghassan Omet Majed Shami Adel Bino Bashar Abu Khalaf

Abstract

The objective of this paper is to examine the issue of entrepreneurship in Jordan. Based on the survey of Jordanian adults (2006 individuals in total) which is carried out by the Global Entrepreneurship Monitor (GEM), it is reported that entrepreneurship in Jordan is lower than might be expected. In addition, while cultural attitudes are favorable, males are much more likely than females to become involved in entrepreneurial activity. Finally, the results indicate that while the density of entrepreneurship at the regional level reflects some significant differences, fear of failure is one of the most significant factors that impact entrepreneurial activity. Jordanian policy-makers should not assume that by promoting entrepreneurship per se, the national economy will achieve strong economic growth, and reduce unemployment levels. Such a well-intentioned policy might lead to nothing but disappointment at the macro level. Unless the quality (and quantity) of entrepreneurship improves, the likely impact of Jordanian entrepreneurship, especially female entrepreneurship, will remain centered around poverty reduction.

Keywords

Entrepreneurial activity, The objective of this paper is to examine the issue of entrepreneurship in Jordan

References

• Aidis, R., S. Estrin and T. Mickiewicz (2008), “Institutions and Entrepreneurship Development in Russia: A
• Comparative Perspective”, Journal of Business Venturing, 23, p. 656-672. Aidis, R., S. Estrin and T. Mickiewicz (2010a), “Size Matters: Entrepreneurial Entry and Government”, Small
• Business Economics, 39, p. 119-139. Aidis, R., S. Estrin and T. Mickiewicz (2010b), “Institutions, Finance and the Level of Development: The Impact on
• Entrepreneurship in Transition”, Review of Economics and Institutions, 1, p. 1-26. Audretsch, D., D. Dohse and A. Niebuhr (2010), “Cultural Diversity and Entrepreneurship: A Regional Analysis for
• Germany”, Annals of Regional Science, 45, p. 55-85. Bosma, N. and V. Schutjens (2010), “Understanding Regional Variation in Entrepreneurial Activity and Entrepreneurial Attitude in Europe”, Annals of Regional Science, 47, p. 711-742.
• Braunerhjlem, P., Z.Acs, D. Audretsch and B. Carlsson (2010), “The Missing Link, Knowledge Diffusion and Entrepreneurship in Endogenous Growth”, Small Business Economics, 34, p. 105-125.
• Freytag, A. and R. Thurik (2007), “Entrepreneurship and its Determinants in a Cross-Country Setting”, Journal of
• Evolutionary Economics, 17, p. 117-131. Ikeuchi, K. and H. Okamuro (2010), “Effects of Regional Human Capital Structure on Business Entry: A
• Comparison of Independent Startups and New Subsidiaries in Different Industries", Global COE Hi-Stat Discussion Paper Series 113, Hitotsubashi University, Japan. Klapper, L., R. Amit, M. Guillen and Quesada, J. (2007), “Entrepreneurship and Firm Formation Across Countries”,
• Policy Research Working Paper 4313, World Bank.
• Kobeissi, N. (2010), “Gender Factors and Female Entrepreneurship: International Evidence and Policy
• Implications”, Journal of International Entrepreneurship, 8, p. 1-35. Krasniqi, B. (2009), “Personal, Household and Business Environmental Determinants of Entrepreneurship”,
• Journal of Small Business and Enterprise Development, 16, p. 146-166. Llussa, Fernanda (2009), “Determinants of Entrepreneurship Rates: Females versus Males”, Mimeo, Universidade Nova de Lisboa.
• Luckgen, I., D. Oberschachtsiek, R. Sternberg and J. Wagner (2004), “Nascent Entrepreneurs in German Regions:
• Evidence from the Regional Entrepreneurship Monitor (REM)”, IZA Discussion paper No. 1394, Germany.
• Martin, M., M. Picazo and J. Navarro (2010), “Entrepreneurship, Income Distribution and Economic Growth”,
• International Entrepreneurship and Management Journal, 6, p. 131-141. McMullen, J., D. Bagby and L. Palich (2008), “Economic Freedom and the Motivation to Engage in Entrepreneurial
• Action”, Entrepreneurship Theory and Practice, 32, p. 875–895. Naude, W., T. Gries, E. Wood and A. Meintjies (2008), “Regional Determinants of EntrepreneurialStart-Ups in a
• Developing Country” Entrepreneurship and Regional Development, 20, p. 111-124. Naude, W. (2008), “Entrepreneurship in Economic Development” UNU-Wider, Research paper No. 20, Helsinki.
• Naude, W. (2009), “Entrepreneurship is not a Binding Constraint on Growth and Development in the Poorest
• Countries” World Institute for Development Economic Research, Research Paper No. 45, United Nations University (UNI-WIDER), Finland. Okamuro, H. (2008), “How Different are the Regional Factors of High-Tech and Low-Tech Start-Ups? Evidence from Japanese Manufacturing Industries”, International Entrepreneurship and Management Journal, 4, p. 199- 2
• Pete, S., A. Nagy, L. Gyorfy, A. Benyovski and T. Petru (2010), “The Evolution of Early-Stage Entrepreneurial
• Activity Influencing Factors in Romania”, Theoretical and Applied Economics, 7, p. 5-14. Stam, E. and A. Van Stel (2009), “Types of Entrepreneurship and Economic Growth”, UNU-MERIT, Working Paper No. 049, The Netherlands.
• Stam, E., C. Hartog, A. Van Stel and R. Thurik (2010), “Ambitious Entrepreneurship, High-Growth Firms and Macroeconomic Growth”, Scientific Analysis of Entrepreneurship and SMEs (SCALES), The Netherlands.
• Tamasy, C. (2006), “Determinants of Regional Entrepreneurship Dynamics in Contemporary German: A
• Conceptual and Empirical Analysis”, Regional Studies, 40, p. 365-384. Thurik, R. (2009), “Entrepreneurship, Economic Growth and Policy in Emerging Economies”, World Institute for
• Development Economic Research, Research Paper No. 12, United Nations University (UNI-WIDER), Finland. Tong, Q., D. McCrohan and M. Erogul (2012), “An Analysis of Entrepreneurship Across Five Major Nationality groups in the United Arab Emirates”, Journal of Developmental Entrepreneurship 17, p.1-18.
• Touzani, M.,F. Jlassi, A. Maalaoui, and R. Hassine (2013), “Contextual and Cultural Determinants of
• Entrepreneurship in pre- and Post-Revolutionary Tunisia: Analyzing the Discourse of Young Potential and Actual Entrepreneurs”, Journal of Small Business and Enterprise Development, 22, p. 160-179. Valliere, D. and R. Peterson (2009), “Entrepreneurship and Economic Growth: Evidence from Emerging and Developed Countries”, Entrepreneurship and Regional Development, 21, p. 459-480.
• Van Stel, A., D. Storey, D. and R. Thurik (2007), “The Effect of Business Regulations on Nascent and Young
• Business Entrepreneurship”, Small Business Economics, 28, p. 171–186.