Overview
The National Self-Employment Program for SMEs, “Inhad,” supported by UNICEF and implemented in partnership with the Central Bank of Jordan, Ministry of Planning and International Cooperation (Irada Program), Banks Association in Jordan, and Jordan Loan Guarantee Corporation (JLGC), provides a comprehensive and structured pathway to self-employment for Jordanian youth and SMEs, strengthening business readiness and competitiveness. The program targets individuals aged 16 to 45 through a comprehensive approach to SME development and investment enablement.
Through Inhad, BDC has helped mobilize investments within the target communities. In collaboration with local banks, financial institutions, and the Jordan Loan Guarantee Corporation (JLGC), BDC has, to date, facilitated the allocation of USD 141 million in loan capital for young entrepreneurs. This financing has supported the establishment of new SMEs and the scaling of existing businesses. Over the past three years, BDC’s efforts have resulted in the creation of 405 new businesses, some of these businesses receiving an average investment of USD 60,000, resulting in a total investment of around USD 27.6 million. Of this total investment, around USD 15 million was provided by concessional loans, supported by an 85% loan guarantee through JLGC’s outreach program.
A cornerstone of Inhad program is improving SMEs access to finance. To achieve this, BDC collaborated closely with the Central Bank of Jordan and other financial partners to develop loan products tailored to the needs of young SME owners. This partnership resulted in the introduction of competitive loan terms, making financing more accessible and affordable. For example, SMEs can benefit from a grace period of up to one year before commencing repayments on their interest-free loans.
The program’s strategic approach included:
Bank Partnerships:
The program facilitated agreements with major banks, including the Housing Bank for Trade and Finance, Cairo Amman Bank, Jordan Islamic Bank, Etihad Bank, Arab Bank, and Jordan Kuwait Bank, to offer youth-friendly loan products. These products featured reduced interest rates and flexible repayment schedules, aligned with the financial realities of young SME owners. All loans were 85% guaranteed by the Jordan Loan Guarantee Corporation (JLGC). Additionally, BDC, as the leading management entity for the INHAD program, helped design specific green loans to reduce costs and align enterprises with the Sustainable Development Goals (SDGs) and the National Environment Strategy.
Business Linkages:
The program established connections with angel investors, microfinancing institutions, and crowdfunding platforms to increase access to finance for SMEs.
Outreach and Selection:
Engaging potential entrepreneurs and SMEs and applying eligibility and selection criteria to identify participants with strong business potential. The program reached 24,000 interested applicants and, to date, has selected 8% through a structured screening and selection processes.
Entrepreneur Capacity Building:
Providing practical entrepreneurship training and business development support to strengthen business readiness and competitiveness.
Financial Inclusion Initiatives:
BDC implemented a series of financial literacy workshops and training programs to ensure participants were well-prepared to manage their finances and leverage available loan products effectively. These initiatives build the capacity of 1,945 SME owners, with a 50% female participation rate, equipping them with essential skills in financial planning, budgeting, and investment.
Financial Mentorship:
Financial experts and experienced entrepreneurs provided mentorship, enhancing financial literacy among participants.
Additional Success Metrics
Results
