The Economic Impact of the Corona Pandemic on Women-Owned Companies in Jordan

Khalaf Suleiman Al-Taani
Khalaf Suleiman Al-Taani

Abstract

ABSTRACT This study focuses on how micro, small and medium companies are affected by the epidemic and how they deal with its impact in Jordan. The results of the study in Jordan showed that 74% of those who were laid off from their jobs during the pandemic are women. The study showed that 70% of these companies resorted to loans in order to be able to continue paying their employees’ salaries. The sample of the study included 503 companies owned by women, and they constituted micro-enterprises about 74% of the study sample, while the medium and small ones, constituted 4% and 22%, respectively, and was conducted between December 2020 and May 2021. The results also revealed that only 13 establishments, or 2.5% of the sample, were able to benefit from loans that fall within the economic establishments support program implemented by the Central Bank of Jordan, according to Defense No. (4). The study pointed out that the low demand, limited working hours and markets, and the closures that accompanied the pandemic, prompted about 50% of women-owned companies to reduce the prices of their products, so that they could compete, while about 30% of them had to reduce the number of their employees. Only of the companies owned by women in Jordan were able to return to work again, at the time of the study. The study recommended the necessity of establishing a special fund to support companies owned by women, with interests not exceeding 3%, and opening new foreign markets for them. She pointed out that the decisions that accompanied the measures to combat the pandemic did not meet the special needs of working women or those who have a job, and did not provide a supportive environment for them to work. The study also recommended the need to raise awareness and familiarize micro, small and medium companies with funds and programs that provide financial support, while supporting the financial departments in these companies. It also recommended supporting and building the capacities of the aforementioned companies in developing their exports and establishing economic relations among them, while exploiting e-commerce platforms to enhance the volume of online sales. With the expansion of the list of home business sectors whose entrepreneurs are facing a challenge in managing cashflow?

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