Eman from Mafraq describes how the UNDP Livelihoods project affected her life as she is the only women in her village to open a business- a bakery shop:
“I had a once-in-a-lifetime chance to open my micro-business; to be self-reliant without any loans or any assistance from people. I felt a significant improvement
in my standard of living. At the social level, I accquired new communication and dialogue skills that have inspired me to innovate.”
Livelihoods project changed the life of a Jordanian from Mafraq
UNDP Jordan, in partnership with a micro-venture fund, helps the beneficiaries share their investment risks and tie any payback possibilities with profit making. The entrepreneur’s share of 84% is granted by UNDP, and the implementing micro venture fund partners with 16% of ownership. The entrepreneurs buy back 10% to 20% of the implementing micro-venture fund’s shares every year according to the market price, and beneficiaries are given close mentoring support to grow until they can start to payback/buyback.
Entrepreneurship & Support to Establish Microbusinesses The entrepreneurship environment in Jordan faces several challenges, mainly the lack of finance, high start-up cost (capital seeds and raw materials), and high interest rates on loans. Additionally, most entrepreneurs have no training before starting businesses, and lack guidance and mentorship throughout business stages. Responding to such challenges, UNDP Jordan launched an innovative initiative called “Micro-Equity Investment”. It blends approaches from both venture capital and micro-lending,
and offers a comprehensive set of business support services, such as mentorship, accountancy, marketing and legal services.
We are proud of:
1300 Youth trained on business establishment.
500 Microbusinesses established.
50% of 750 young men and women in Mafraq are moving to sustainable livelihoods through the development of microbusinesses.
40% of more than 300 youth trained on Entrepreneurship Skills & Microbusiness Development.
Why did it work?
To ensure the highest quality of success, participants undergo a training to build their life and basic business skills, and expertise in establishing and running microbusinesses. After that, each participant or group of participants submits a business plan to implement the idea of their projects, which is financed by UNDP. The project provides advisory services (accounting, legal, marketing, etc) as well as market development (private sector engagement, Value-Chain Development, etc) in order to ensure the sustainability of established microbusinesses and to promote its socioeconomic impacts on improving the standards of living of people in host communities.