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ENTERPRISE FINANCING

Dr. Rashad Othman from Jordan discusses the importance of investment, the shortage of proper financial products, and the need to support existing SMEs, startups, and new ideas in the region. He also highlights government and private sector initiatives to promote access to finance and encourages the establishment of an enabling environment for venture capital and innovation.

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ENTERPRISE FINANCING

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  1. ENTERPRISE FINANCING MENA-OECD CONFERENCE DUBAI MARCH 2007 Dr.Rashad Othman, Jordan

  2. FACTS • WE ALL AGREE ON THE IMPORTANCE OF INVESTMENT AS A DRIVER FOR ECONOMIC DEVELOPMENT • THERE IS NO SHORTAGE OF CAPITAL FOR INVESTMENT, JUST THE ARAB CAPITAL AVAILABLE IS MORE THAN 3 TRILLION DOLLARS • SHORTAGE OF PROPER FINANCIAL PRODUCTS AND INSTRUMENTS Dr.Rashad Othman, Jordan

  3. FACTS • SME’s REPRESENT MORE THAN 97% OF COMPANIES • ACCOUNT FOR TWO THIRD OF JOBS • SIGNIFICANT SHARE OF THE VALUE ADDED • WE NEED 47 MILLION NEW JOBS BY 2012 • WE ALL KNOW THE CHALLENGS, BUT THE IDEAL ENVIRONMENT MIGHT NOT COME SOON, SO WE ARE MOVING…….. Dr.Rashad Othman, Jordan

  4. WE NEED TO DEFINE FINANCIAL NEEDS BETWEEN: • EXISTING SME • START UPS • NEW IDEAS/INNOVATION Dr.Rashad Othman, Jordan

  5. EXISTING SME’S • THEY DO NOT HAVE ACCESS TO THE FINANCE • NEGATIVE IMPACT ON GROWTH AND COMPETITIVNESS • LIMITED VALUE ADDED TO THE ECONOMY Dr.Rashad Othman, Jordan

  6. START UPS • ALSO DIFFICULT TO HAVE ACCESS TO FINANCE • PERSONAL RISKS • LIMITED GROWTH Dr.Rashad Othman, Jordan

  7. NEW IDEAS/INNOVATION • THEY NEED MORE SUPPORT SINCE IT IS STILL AN IDEA • FEW IDEAS MIGHT MATERIALISE INTO REALITY Dr.Rashad Othman, Jordan

  8. JORDAN REVIEW • GOVERNMENT ESTABLISHED TWO PROGRAMMES: • SUPPORT SME’S, UPGRADING THEIR CAPACITY & CAPABILITIES LEADING TO ACCESS TO FINANCE • INNOVATION CENTERS/INCUBATORS • TODAY THERE ARE 5 CENTERS, EACH HAS 5 INCUBATEES • IN COOPERATION AND HOSTED BY THE RESEARCH & EDUCATION INSTITUTIONS • DIVERSIFIED IN NATURE, FROM I.T, FOOD INDUSTRIES, INDUSTRIAL ..ETC Dr.Rashad Othman, Jordan

  9. SEED CAPITAL • EACH INCUBATEE CAN HAVE ACCESS TO UP TO 15,000 JD (+20K $) • TEAM OF EXPERTS ARE ASSIGNED TO THE PROJECT OWNER • USUAL TIME FRAME IS 6-12 MONTHS. Dr.Rashad Othman, Jordan

  10. PRIVATE SECRTOR INCUBATORS • WE PRESENTLY HAVE NEW INNOVATIVE PROJECTS IN THE FIELD OF CLIMATE CHANGE AND RENEWABLE ENERGY: • WINDMILL PROJECT TO PRODUCE 60 MEGA WATT OF ELECTRICITY • BIOMASS PROJECT BOTH QUALIFY FOR CDM, FINANCIALY SOUND AND NEEDS FINANCING Dr.Rashad Othman, Jordan

  11. RECOMMENDATIONS • ENABLING ENVIRONMENT FOR VENTURE CAPITAL THROUGH • NEW BY LAWS • INCENTIVES • ESTABLISHMENT OF INNOVATION FUND • PROMOTING THE INNOVATION CULTURE • STRENGTHENING RELATIONS WITH THE FINANCIAL SECTOR, CREATING SME’S FINANCING TEAMS • STRENGTHEN RELATIONS BETWEEN STAKEHOLDERS, INCUBATORS, BUSINESS ANGELS, FINANCE INSTITUTIONS, RESEARCH ..ETC Dr.Rashad Othman, Jordan

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