The Adequacy of the Jordanian Regulations in Regulating the Operation of Small and Medium-Sized Enterprises

Abstract

Small and medium-sized enterprises (SMEs) play a prominent role in the national economic growth and employment, provided they do not experience legal obstacles. This research aimed to investigate the adequacy of the current Jordanian legislation in promoting the operation of small and medium enterprises in Jordan and to identify its shortcomings, which may threaten their continuity. This study used a descriptive and analytical comparative legal approach to investigate global trends in small- and medium-sized company regulation, including the UN Commission on International Trade Law directives. The study also examined Jordanian legal frameworks, particularly those pertaining to companies and trade. The research discussed this issue in two sections. The main question was whether the laws regulating SMEs were adequate. The study concludes that although these projects can be partially covered by current legislation, their particularity and uniqueness necessitate the creation of special regulations that provide extra incentives and maintain their sustainability. As a result, the study suggests amending the Trade Registry System No. (130) of 1966 and the Jordanian Companies Law No. (22) of 1997, among other existing legal frameworks, and to dedicate special provisions that cater to the requirements for the success of these enterprises.