Financing entrepreneurial firms in Jordan: technological versus traditional methods

Abstract

Purpose

This study explores the experiences of Jordanian entrepreneurs in using traditional and technological methods to finance their firms and the factors affecting their choices of financing methods.

Design/methodology/approach

The researchers applied a qualitative approach, conducting 24 semi-structured interviews with Jordanian entrepreneurs who have experience with traditional or technological financing methods.

Findings

Users of technological financing methods preferred them given the ease of obtaining the fund and the opportunity to test the project’s viability, while users of traditional methods preferred them due to clear goals and regular meetings with the investors, and benefiting from the investor’s mentoring and networks. However, traditional methods were seen as needing more time, requiring high costs and facing pressure from investors for quick results, while technological methods were seen as requiring dealing with too many individuals. Users of both types of methods were critical of the current regulations regarding entrepreneurial firms in Jordan.

Originality/value

This study contributes to our knowledge by exploring preferences of entrepreneurs and problems facing them in funding their firms in the emerging economy context of Jordan. Findings of this study can, to some extent, be extended to similar emerging economies and assist in creating a better environment for entrepreneurship in these countries.

Citation

Abdelfattah, M. and Abdullatif, M. (2025), "Financing entrepreneurial firms in Jordan: technological versus traditional methods", Journal of Entrepreneurship and Public Policy, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JEPP-09-2024-0155