AMMAN - Perseverance, strong will and a small amount of cash can help Jordanians start their own business and save them years of waiting for a public sector job.
"After I earned my bachelor's degree in agriculture, I decided to work in a different area I liked which is calligraphy and I did not wait for a public sector job opportunity," entrepreneur Mohammad Badanieh said during the Eighth Annual Microfinance Conference which commenced on Tuesday.
After starting with a small shop in Tafileh with the help of a small loan, Badanieh opted to move and expand his business in Aqaba instead of waiting to be hired. He is currently providing jobs for 15 Jordanians, he said, emphasising his determination to succeed even further.
The three-day conference, held by the Network of Arab Countries "Sanabel", brings together more than 600 entrepreneurs, officials, representatives of microfinance institutions and stakeholders from the Middle East and North Africa region.
Titled "Microfinance in the Arab Region: Challenges of the Past and Opportunities of the Future", the conference, inaugurated by Minister of Planning and International Cooperation Jafar Hassan, will focus on several issues such as risk management, financing and innovation.
In his opening address, Hassan highlighted the ministry's national strategy on microfinance being prepared in cooperation with the KFW German Bank group.
Under the strategy, one single entity will be entrusted with supervising microfinance projects instead of diversified parties in order to unify efforts exerted in this domain.
The strategy will also work to improve contributions by this sector to sustainable development and the economy, he said, in addition to streamlining channels to provide chances to poor people who are capable of working to earn their own income.
"The government is keen on supporting microfinance institutions that present financial and other services to reach the various areas of the Kingdom, " Hassan added, pointing out that these institutions will be exempted from tax this year as was the case last year as part of the government's support.
On problems facing borrowers, Durria Hassan from Khartoum Microfinance Network said, "the main problem is that of guarantees". Small loans are given to poor people and this bracket cannot provide financial guarantees, she explained.
Also, very few financial institutions work in this area due to bankers' mentality. "Banks prefer to deal in big credit facilities which require less effort and time instead of working with larger numbers of clients who need more time and effort," she added.
In reply to a question about doubtful loans, Sanabel Chairperson Hassan Farid said there are delays in some cases but there are no defaults because borrowers' capacity and proposed projects are always studied carefully before they are granted in cash or technical assistance.
A banker from Yemen, however, said political instability is expected to yield doubtful loans, in addition to delays.
During yesterday's opening session, the Grameen Jameel Microfinance awards were presented to outstanding microfinance regional institutions and outstanding micro-entrepreneurs from Jordan.
© Jordan Times 2011
