Determinants of Growth in Micro and Small Enterprises: Empirical Evidence from Jordan

摘要

This paper identifies key determinants of micro and small enterprise (MSE) growth in Jordan, based on a survey of 4,700 MSEs located across six governorates. Following an extensive review of the literature, a structured questionnaire was used to collect data on a number of the key factors identified in the literature as important to MSE growth. These factors were examined, and their importance tested, using a binary logistic regression model, in the context of Jordan. The fact of having "hired staff in the last 12 months" is used as a proxy for firm growth. The research found that the top five factors influencing MSE growth in Jordan are formality, education level of the firm owner, sector, use of technology, and age of firm.