National Impact and Market Study of Microfinance in Jordan
This paper presents an impact and market study of the microfinance sector in Jordan. It uses the Impact-Knowledge-Market (IKM) methodology, and draws insights from 1,314 interviews and three focus group discussions with clients from seven Jordanian MFIs. The sample collected for the study was designed to represent the average microentrepreneur household in Jordan. The study aims to provide information on:
- Socio-economic characteristics of microentrepreneur households and activities;
- Demand statistics for financial services, and current practices regarding the use of financial products;
- Investment practices of microentrepreneurs,
- Quantifiable poverty index for microentrepreneurs;
- Perception of the impact of microfinance on households, womens empowerment and accumulation of wealth;
- Reasons for client drop-out and statistics on client satisfaction.
The study indicates that microfinance has had a positive impact on business development, and it provides the only external source of finance for the economically active poor in Jordan. Finally, it states that microfinance can have a greater impact if it helps clients build stronger microenterprises, enabling them to climb out of poverty and contribute to the economic development of Jordan.
