Why CERA?
MSMEs play a critical role in the Jordanian economy, employing 60% of formal workers and representing 98.5% of all registered businesses. However, despite their significant contribution to job creation, MSMEs only contribute to less than 30% of GDP and 10% of total exports.
One of the main reasons for this is that many enterprises rely on non-local suppliers rather than sourcing their inputs from local MSMEs. This can limit the economic opportunities for local businesses, particularly those in rural or underserved areas. Additionally, many local MSMEs lack the capacity and skills to enter new markets or meet the required quality standards, which can make it difficult for them to compete with larger, more established businesses.
However, there is significant potential for local sourcing in Jordan. In fact, 95% of Jordanian enterprises are willing to buy locally as long as quality and price requirements are met. By supporting the development of local MSMEs and promoting local sourcing, businesses can help to create new economic opportunities and support the sustainable development of underserved governorates across Jordan.
Win-win Solution
Alliance Benefits
When large enterprises (LE) partner with MSMEs, they can expect to see improved social responsibility activities. By pooling resources and expertise, both parties can collaborate to tackle social and environmental issues more effectively. In addition, alliance members can help increase production efficiency by leveraging the MSMEs understanding of the local market, culture, and preferences. As a result, corporations can save time and money while ensuring their products and services align with local preferences. CERA will also provide B2B opportunities, which allow large enterprises (LEs) to leverage MSME networks and resources to expand their reach. Finally, supporting the local economy may increase consumer purchasing power, leading to more sales for both parties.
MSME Benefits
CERA also offers a range of benefits to MSMEs. By sourcing for LEs, MSMEs can improve their capacity to meet cost and quality standards, which can increase their competitiveness in the market. Through CERA, MSMEs can access upskilling opportunities, technology, and business development support services. This helps them to develop the necessary skills and expertise to grow their businesses sustainably. Benefits of the CERA project also include access to new supply chains and markets, which can help MSMEs expand their reach and tap into new sources of demand.
