Estimating The Efficiency of Small Enterprises That are Funded From Development and Employment Fund In Jordan

Khalid A. Al-Khathlan, Iyad A. Al-Nsour

Abstract


This study aims at estimating the economic and social efficiency of the small enterprises that have been funded by the Development and Employment Fund DEF in Jordan and their productivity indicators. This study tries to evaluate the role of those small enterprises in creating job opportunities and measure both of the average total productivity and Partial productivity for the production factors using in these enterprises. Moreover, this study tries to evaluate the marginal rate of substitution and the relative changes in the prices for the production factors in funded enterprises.
This study concludes that the small services enterprises which were funded by DEF have achieved an economic efficiency exceeded what other enterprises have achieved. The results showed also that the small funded agricultural enterprises are more labor intensive while other small funded enterprises are more capital intensive.
Furthermore, while the small funded services enterprise achieved higher average total productivity, the study shows that the changes in cost of capital and cost of labor in most of small enterprises that have been funded by DEF are positively related to these changes, but the tourism small funded enterprises are excluded.
This study suggests that the DEF should focus on funding both services and handicraft sectors and stopping the fund oriented to small agricultural enterprises.

Keywords


Efficiency, Small Enterprises, Development and Employment Fund, Jordan

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