Are SMEs Efficient? Applied Study on the SMEs Financed by Islamic Banks in Jordan

Abstract

This study aimed at measuring the role of Islamic banks (IB) in Developing small and medium enterprises (SMEs) in Jordan, by measuring the efficiency level of such enterprises.  The study population consisted of all small and medium enterprises SMEs funded by Islamic Banks IB operating in Jordan for 2016, which estimated at (3207) enterprises. The full survey method was used. The study found that there was a weak role of Islamic  banks in developing small and medium enterprises in Jordan. This study showed that SMEs financed by Islamic banks showed that SMEs funded by Islamic banks (IB) have achieved the lowest economic efficiency compared to those financed by other microcredit sources operating in the economy. Finally, The study recommended and suggested some implications that enhance the role of Islamic microfinance in developing the SMEs sector in Economy of Jordan .

Keywords: SMEs , Efficiency, Islamic Banks, Jordan.

DOI: 10.7176/EJBM/11-4-02