AMMAN (JT) - The Business Development Centre (BDC) signed on Tuesday a cooperation agreement with the Dutch Business in Development Network-BiDNetwork.
The agreement was signed by BDC President and Chief Executive Officer Nayef Stetieh, and BiDNetwork Managing Director Nils De Witte in the presence of Minister of Industry and Trade Amer Hadidi and the ambassador of Netherlands to Jordan.
A BDC press release said: "With this new cooperation, Jordan has been added to the network's group of countries to receive services for entrepreneurs and small and medium-size enterprises [SMEs]."
"Through this new cooperation, BDC will be able to help SMEs to access the worldwide equity market consisting of experienced Angel Investors and SME funds through a network of investor matchmaking service provided by the BiDNetwork," the press statement added.
The main obstacles to SME finance are: SME entrepreneurs' unfamiliarity with equity which is hard to find, the fact that financial products are not suited to SMEs and high transaction and management costs and availability of only few exit opportunities. This new programme will focus on two types of SMEs: Innovative SMEs characterised by having technologies, efficiency gains, new product-market combinations, replicability and scalability; and secondly, the growth of SMEs that are scalable in distribution and jobs, have upstream and downstream linkages and franchising.
BDC will contribute to reaching target SMEs and will participate in the process of evaluating and coaching the business plans submitted to qualify for the final stages of selection before linking SMEs with available investors.
Stetieh said: "In addition to the various SME development projects we have at BDC, this new initiative is considered another step towards developing SMEs and entrepreneurs in Jordan who play a great role in shaping the national economy and creating jobs. It's also considered a practical step to enable them to overcome the obstacles they face mainly caused by the lack of resources and the scarcity of funds."
De Witte asserted that the cooperation with BDC is built on a long-term partnership that aims to achieve strategic goals, enhance innovation and entrepreneurship in Jordan as well as connecting entrepreneurs to the international capital market and create a domestic one.
The BiDNetwork contributes to sustainable economic growth by creating access to equity for innovative and fast-growing enterprises in new emerging markets.
It is expected that the BiDNetwork will be the best known and most efficient facilitator of equity investments in SME businesses in new emerging markets by 2010.
BDC is a Jordanian non-profit development organisation contributing to economic development and a better life for all Jordanians.
BDC helps Jordanian enterprises realise their full potential, create more jobs with higher income and prepares them to compete successfully in regional and international markets. As a regional and national resource, the centre also launches business development service initiatives and facilitates several donor economic development projects.
© Jordan Times 2008
