Obstacles of Financing Small Projects by Jordanian Commercial Banks

Abedalfattah Zuhair Al-abedallat, Naseem M Aburuman, Hamdan Moh' D Al – Hiyasat and Belal Rabah Taher Shammout

International Business Research, 2017, vol. 10, issue 5, 13-21

Abstract: The small projects sector suffers from many constraints, especially in terms of the financial side due to weakness in the finance, the problem of the study occurs based on the presence of obstacles in financing small projects by Jordanian Commercial Banks (Banking Obstacles, Small Projects Obstacles, and Governmental Obstacles). Thus, the study seeks to identify those obstacles, and it founded there is a significant statistical impact of the obstacles (Banking obstacles, Small projects Obstacles, Governmental obstacles) on the financing of small projects by Jordanian commercial banks. Also, there is a good statistical relationship between the obstacles (Banking obstacles, Small projects Obstacles, Governmental obstacles) and the financing of small projects by Jordanian commercial bank. The study recommended that the central bank should make laws that force banks to set aside a portion of the loans portfolio to small projects. Also, there is a need for the government to provide support to small projects, specifically in the training of the human resources and in the making of an economic feasibility study.

Keywords: small projects; banking obstacles; small projects obstacles; governmental obstacles; Jordanian commercial bank (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:ibn:ibrjnl:v:10:y:2017:i:5:p:13-21

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