Bayit Yehudi leader Naftali Bennett 370.
(photo credit: Marc Israel Sellem / The Jerusalem Post)
An interim Organization for Economic Cooperation and Development report on
Israel’s business environment found that despite an educated workforce and
support for entrepreneurs and startups, the country’s bureaucracy and red tape
still presented significant challenges in comparison with other advanced
The report, carried out by the Economy Ministry’s Testing and
Evaluation Committee, gave Israel low marks on encouraging non-tech companies
and said it failed to make the process of registering and licensing new small
businesses easier. Israel did not do enough by way of legislation or regulation
to aid new businesses, the report said.
Among the worst offenses was
failure of local authorities and various nongovernmental public bodies in paying
obligations to small and medium enterprises, it said.
bureaucracy relating to small and medium businesses is tough,” Economy and Trade
Minister Naftali Bennett said, citing the story of his wife’s struggle with red
tape when she tried to open up a small business. “We are working to remove
barriers, make business complications with the bureaucracy lighter and aiding
small and medium businesses through state-guaranteed loans.”
difficulties, the report also had some bright points. Israel has good systems in
place to support startups and excels at making its products accessible to world
markets, it said. The highly educated workforce provides the keys to drivers of
Israeli economic growth: entrepreneurship and innovation, the report said.