Entrepreneurship in Jordan: the eco?system of the Social Entrepreneurship Support Organizations (SESOs) - Amani Jarrar

Introduction

Social entrepreneurship is the solution for raising the challenges of sustainable development, and that require improving living conditions for all individuals without an increase in the use of natural resources; as the civilization of a nations are measured by the level of per capita income, far from developing its characteristics, advantages, and human contributions.

Te value and efectiveness of social capital are focused on social relations, cooperation, and trust for achieving economic goals, and it consists of social networks; networks of civic participation, and common customs that have an impact on the productivity of the society, and have a value that afects the productivity of an individual or group. Te social sector is considered a key factor for the success of democracy and political participation (Wolf, 2009). An entrepreneurship ecosystem is defned as the social and economic environment that afects local or regional entrepreneurship. In addition, this system refers to the elements, individuals, organizations, or institutions that support entrepreneurs and their success before and after they launch their projects (Stam & Spigel, 2016).

The entrepreneurship ecosystem may include a large number of elements called entrepreneurship stakeholders, and this term may include government, schools, universities, the private sector, family businesses, investors, banks, businessmen, social leaders, research centers, worker representatives, students, lawyers, multinational companies, private institutions, and international aid agencies (Mason & Brown, 2014). To understand more about the characteristics of the entrepreneurship ecosystem, we need to go back to 2010 when the article entitled “How to foment an Entrepreneurial Revolution,” written by Daniel Eisenberg, Professor at Babson College, and published in the Harvard Business Review. Eisenberg established some of the rules and collected characteristics that describe these systems in which entrepreneurship tends to thrive. He also suggested, based on examples from around the world, which entrepreneurs are more successful if they have access to the human, fnancial and professional resources they need, in an environment, where government policies encourage and protect entrepreneurs.

In general, the ecosystem for entrepreneurship includes several areas: politics, fnance, culture, institutional support, people, and markets (Isenberg, 2011). Te Jordanian National Strategy for Entrepreneurship and Micro, Small and Medium Enterprises 2016–2020 diagnosed Jordan’s position in entrepreneurship and considered that the entrepreneurial culture in the Kingdom is weak, and that the weakness of the entrepreneurial culture is one of the most prominent obstacles to Jordan development in businesses and emerging entrepreneurs who use technical advice in developing their projects, which are provided by government institutions, civil society institutions, and business associations. Jordan in 2017 was ranked 49 out of 137 countries according to the global leadership indicators approved by the Global Entrepreneurship and Development Foundation (GEDI), while its global ranking declined in terms of (Starting a Business) from 83rd place in 2015 to 103rd place in 2017. Te country according to World Bank indicators, which is required to encouraging entrepreneurship among young people coming to the labor market, especially in light of the difculty of fnding a job in the public and private sectors and due to the increase in the number of graduates at a level that greatly exceeds what can be absorbed by these two sectors (Te Higher Population Council Report, 2018). Almost all studies in Jordan concerning the eco-system of the Social Entrepreneurship Support Organizations (SESOs) were limited to the economic aspect, without analyzing the impact of this aspect on the social, political, and cultural aspects. Terefore, this study attempted at assessing the role of the (SESOs) in Jordan with an updated eco-system refecting a better resourced Social Entrepreneurship eco-system characterized with Jarrar Journal of Innovation and Entrepreneurship (2022) 11:11 Page 3 of 28 comprehensive information; covering the stakeholders’ identifcation data, ongoing projects and initiatives, work scope, and their targeted groups, to assess the SESOs capacity by coinciding their desired needs and their actual needs, and to limit the social innovation concept variation among the diferent institutions in the ecosystem.

Problem statement

Jordan is witnessing a demographic change, the most notable manifestation of this change is in the age structure of the population in favor of the working-age population, and Jordan also sufers from high rates of unemployment among youth, especially among graduates from universities, technical colleges, and training institutes. Tis phenomenon varies according to gender and governorates, as the participation of women in the labor market decreases, and the desire of young people for self-employment and the implementation of their projects for them decreases. Te national eforts exerted to enable young people to be entrepreneurs are still below ambitions and have not reached the level at which they can address this situation. Tis study provides a survey analysis for the Social Entrepreneurship Support Organizations (SESOs), and an attempt to identify their characteristics and roles in Jordan by trying to answer the following questions:

1. What are the institutions sponsoring entrepreneurship at the national level in the governorates of the Kingdom?

2. What are the services they provide and the challenges they face in empowering young people with entrepreneurship, and their recommendations to overcome these challenges?

3. What is the level of coordination and complementarity of roles between these institutions?

4. What is the organizations’ two-liner mission?

Literature review

Since the term entrepreneurship appeared in Jordan in the sixties of the last century, and the serious attempts that took place in the development processes in all Jordanian governorates, it did not receive sufcient attention for several reasons, most of which are related to the coordination and legislative framework organizing the interrelations within the sector. Tis naturally necessitated heading to the sub-sectors that make up the entrepreneurship sector in general, since the urgent need was the main driver in showing these sub-sectors, the most important of which was the social entrepreneurship sector in Jordan, as the concept of social entrepreneurship is considered a method followed by start-up companies or entrepreneurs, including a set of measures aimed at developing, fnding and implementing solutions to economic, social, cultural, or environmental issues or other issues that seek to create a safe environment for groups of the society that aim to create an environment to overcome marginalization through education, volunteer youth programs or organizing civil work with a social impact (Alrawadieh & Alrawadieh, 2018).

Social entrepreneurship encompasses a set of opportunities, the most important of which is creating a clear framework to support all segments of society, creating a prosperous and sustainable future and a strong economy capable of growth to reduce poverty and unemployment. In addition to responding to many of the needs of local communities, which are mainly related to the basic needs of societies, which are the sectors of education, health, and the infrastructure (Santos, 2012). Despite all this, social entrepreneurship and the great opportunities it ofers, however, face a set of challenges and obstacles that would signifcantly limit its growth and expansion, which will be refected in the number of jobs that the sector will create, and the most prominent of these challenges lies in the absence of a legislative framework that organizes the relationship and fulflls the interests of all parties, which is the responsibility of the government to implement (Mehtap, 2014). Te Ambassador of the European Union to Jordan Andrea Fontana said: Social entrepreneurship has become an innovative practice model that helps bring about change and refects positively on local communities, pointing the experience of the European Union with Jordan to improve its business environment, and in particular by linking business incubators with social entrepreneurs who are looking to make a positive change in their societies by fnding sustainable solutions to existing problems (Jordan news agency, 2020). Social entrepreneurship is the solution to raising the challenges of sustainable development, which requires improving living conditions for all individuals without an increase in the use of natural resources in efective sustainability capable of preserving resources for future generations, as the civilizations of nations have become measured by the individual’s income level, far from developing his characteristics, advantages and human contributions (Azmat, 2013). Te most important efects of social entrepreneurship on the development of any society can be measured sustainably according to the following levels:

– Short-term level: tangible changes in the society’s economy (creating jobs, generating outputs, or increasing savings).

– Medium-term level: Te value of social entrepreneurship is refected in being a potential model that works on the well

-being of society and improving its conditions, and then the success of social entrepreneurship is measured by its ability to increase productivity and development projects.

– Long term level: Te most signifcant contribution of social entrepreneurship occurs in the long run, and is measured by its ability to create and invest social capital.

To proceed with social entrepreneurship, there is the need to increase the number of social business incubators that yield material proft and do not contradict the public beneft, and their success is measured by the beneft achieved by the society in addition to material proft. Social entrepreneurs need wider networks to exchange ideas and spread best practices. Isolating those makes entrepreneurship less efcient, and the entrepreneur often tries to come up with his solutions to overcome this?isolation, by collecting and disseminating best practices and provides a forum for discussion and creation of ideas, and entrepreneurs can exchange communications and linkages with companies, providing a job market of some kind, or conducting joint training (Dey & Lehner, 2017).

Study objectives Te study aims at assessing the Social Entrepreneurship Support Organizations (SESOs) in Jordan with an updated eco-system refecting the following objectives:

1. Better resourced Social Entrepreneurship eco-system characterized with:

– Comprehensive information; covering the stakeholders’ identifcation data, ongoing projects and initiatives, work scope, and their targeted groups. – Accurate data based on a well-developed survey.

– Analysis of the survey data by the researcher

2. Assessing the SESOs capacity by coincide their desired needs and their actual needs.

3. Limit the social innovation concept variation among the diferent institutions in the ecosystem.

Study methodology

Whatever the focus is, qualitative and quantitative analysis approaches should be concerned with the interpretation of the subjective meaning and description of social context. In addition, the adopted methodology in this study clarifes how people in certain contexts come to appreciate, justify, carry out and administer their routine circumstances, and seek to deliver data within the society. Qualitative content analysis can be referred to as a research method for subjective interpretation of the content of text data through the systematic classifcation process of coding and identifying themes or patterns.

Results and?discussion Facts about?Jordan related to?the?(SESOs) eco?system analysis in?Jordan

Fact one: population and?area distribution by?governorate in?Jordan Data in Table?1 show that Amman, the capital of Jordan had the highest population rate (42.0%), followed by the governorate of Irbid, with a population the percentage of (18.5%), and followed by the governorate of Zarka, with a population the percentage of (14.3%). Tese three governorates acquired the percentage of (74.8%) of the Jordan’s population, and other nine governorates acquired the percentage of (25.2%) of the Jordan’s population.

Fact two: percentages related to?Amman Amman is the third governorate by area in Jordan: with a population percentage of (42.0%) of the total population in Jordan, and with a Population Density of (571 per km2 ). Te frst two governorates are Ma’an governorate with a population percentage of (1.70%) of the total population in Jordan, and with the Population Density of (5.2 per km2 ), and Mafraq governorate with a population percentage of (5.80%) of the total population in Jordan, and with the Population Density of (22.4 per km2 ). Irbid governorate, which is the eighth governorate in the area; has the highest Population Density of (1216.2 per km2 ). Followed by Jarash governorate with a Population Density of (624.7 per km2 ). Moreover, Fig.?1 shows these distributions.

Conclusions

Results show that Balqa governorate had the lowest percentage of the SESOs operating in the Jordanian governorates, and Amman governorate had the highest percentage of the SESOs operating in the Jordanian governorates. And that the highest source of fnance for the SESO’s in Jordan is the (Donors), followed by the (Private sector funding CSR), and followed by the (Bank loans). On the other hand, the least source of fnance for the SESO’s in Jordan is (Revenue making), followed by (Government funding). And as one study goals, results also provided accurate data based on the analysis of the survey showing that (77.19%) do provide staf and volunteers with knowledge, skills, and confdence to deliver inclusive work, and (3.51%) do not provide staf and volunteers with knowledge, skills, and confdence to deliver inclusive work, while (19.30%) are not sure if they provide staf and volunteers with knowledge, skills, and confdence to deliver inclusive work. In addition; and as added value, results show that (57.89%) of the SESO’s in Jordan have dedicated programs that focus on women’s inclusion, and that (68.42%) are hiring more than 50% in their staf. Besides that, results of the analysis of the survey also show that (59.65%) of the SESO’s in Jordan did not dedicate programs for people with disability (PWD); which is a high portion in neglecting this segment of people. Besides that (54.39%) do not have designed facilities friendly using for people with disabilities. Moreover, results show that (73.68%) had dedicated programs for youth with diferent age groups, and (77.19%) of the SESO’s in Jordan had attempted to identify, understand, and actively removing barriers that exist for certain groups of young people in society. Moreover, (70.18%) of the SESO’s in Jordan had organized specifc outreach mechanisms to identify, meet, engage, and/or serve diferent population groups. Finally, results show that (38.60%) of the SESO’s in Jordan had dedicated programs for refugees.

References

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