The role of the banking sector in the financing of small projects In Jordan - a field study

Abstract

This study aimed at revealing the role of the bank sector in financing small projects in Jordan, and the sample was composed of 161 projects of small projects, and after applying the tools of study represented with the questionnaire, the following results were revealed:

• Small projects are categorized in three categories (industrial, commercial and services).
• Most small projects are in the form of individual companies.
• Small projects are characterized with the small number of its administrative which could be one of the reasons behind the low quality of such projects.
• The main difficulties faced by small projects is due to the complex bank procedures, the high benefit ratio which is affected by the weakness of the guarantees presented to banks, and the weakness of the ability to provide the required financial data.

In light of the results, a group of recommendations were presented which are linked to the necessity of developing the bank financing for small projects, in addition to the necessity of the interference of the government sector to aid the owners of small projects by having these small projects specialize in a group of items and services that no big projects compete on.