Jordan: Introduction of the SME Test in Jordan

Amman, 20 March - In order to enhance national growth and competitiveness, and to unlock the potential of MSMEs, an “SME Test” tool is currently being developed for Jordan. Initiated by JEDCO, with EBESM technical support, in the framework of its SBA Governance activity, this SME test will enable the assessment of the impact of new policies and legislation on small businesses before their implementation.

The Test will also contribute to the reduction of administrative burdens that hamper the development of MSMEs. This reform represents a major improvement in Jordanian policy making and law drafting capacities. It will allow Jordanian SMEs to contribute to the legislative and administrative process.

EBESM technical assistance mission conducted a series of meetings with high-level representatives from both the public and private sectors in Jordan, to assess the current approach to policy making and legislative drafting in Jordan and to evaluate how and where an SME test could fit well in that process.  The SME test tool, inspired by EU best practices in this domain, including the EC’s own SME-testing protocol, will be developed and adapted to Jordan’s legal environment.

It is suggested that the Test should be introduced incrementally and not by way of a ‘big bang’. This will involve undertaking a number of pilot studies to evaluate the effectiveness of the Test in Jordanian conditions.

The process to develop fully and operate the SME Test will start with the initial workshop, which occurred on 20-21 March 2016. The Workshop achieved a number of objectives, namely:

•          To explain the wider context of SME Tests and how they fit into Better Regulation and Regulatory Reform projects in the EU Member States and OECD countries,

•          To explain different approaches to SME tests internationally,

•          To explain what an SME Test is and why it is important?

•          To explain, what will be involved in its introduction?

•          To undertake a pilot SME, based on the information provided in this report, on one or more draft pieces of primary or secondary legislation.

The Workshop made it possible to make a preliminary assessment of how the tool will work in practice and to implement any modifications that may be necessary for it to work efficiently and effectively in Jordan.

Please find all the relevant presentations held during the seminar

1. EBESM SME Test Jordan EN
2. Approach to policy making and legislative drafting EN
3. Key findings benchmark EN
4. Better Regulations and their impact EN
6. Example of good practice EN
7. SME test for Jordan EN
8. SME Test for Jordan Report EN