Figure 15: The Private Sector Structure (The Missing Middle) “Private Sector Structure Outcomes — the Missing Middle ‘Total Number of Firms vs Total Revenues of Firms at Each Stage of the Firm Life Cyele in Jordan, 2012 “ea Naber oF Sen: Dept = = al Ree tena Teast § Si Eas Sa 2012 magn te cen no cc agsar Sinema The nature of competition between small and medium-sized enterprises is quite rigid due to the absence of a robust national competition. Small and medium. d enterprises do not contribute certain capital-intensive sectors, such as telecommunications. Nevertheless, as shown in the illustration, concentration levels remain high in a number of non-capital intensive sectors in Jordan such as information technology, pharmaceuticals (medicines), financial services and tourism. This creates barriers to entry for new players and can suffocate the potential both for lower prices and better quality products and services for consumers. In some cases this lack of competition is magnified by preferential legislation and tax concessions that enable industry incumbents to maintain their dominant position in some markets. Since small and medium-sized enterprises are vital in the development of the national economy and the creation of job opportunities, the National Strategy for the encouragement of entrepreneurship and the development of micro, small and medium-sized enterprises for 2015-2019 was prepared. Work is also under way to develop a law for small and medium enterprises. Figure 16: Market Structure for Key Sectors in Jordan Market Structure of Key Sectors in Jordan ‘Market Share of Top 6 Firms by Revenue in Key Sectors, 2012 suns oom Most Concentrated Least Concenteatea \E All Other Firms wim Top 6 Firms’ Market Share Note 10 1p im ntn(2) Oo 3 sie Sse: DOS Eaten Suey DOS Natal Asati Team Au oe 37, WAN