No surprise: Israel's businesses cluster in Tel Aviv

25 businesses for every 100 residents, only 7% in danger of closing

By
March 20, 2016 18:51
1 minute read.
Lightning strikes over the skyline of Tel Aviv during a rain storm

Lightning strikes over the skyline of Tel Aviv during a rain storm. (photo credit: REUTERS)

 
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Tel Aviv has the highest concentration of businesses of any large city in Israel, and the lowest percentage of businesses vulnerable to closing, according to a survey by Dun & Bradstreet Israel.

The survey showed that Tel Aviv had 250 businesses for every thousand residents, more than any other big city.

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On average, 8.5 percent of Israeli businesses were in danger of closing, but in Tel Aviv, the figure was 7%. In Beersheba, it was as high as 12%, the highest for any big city.

Efrat Segev, the director of business development at Dun & Bradstreet Israel, said that was no coincidence; a correlation was clear between concentration of businesses and their likelihood to succeed. Moreover, she said, cities in the country’s center were more likely to have successful businesses than those in the periphery.

“These findings underscore the importance of assistance to the periphery, improving infrastructure and diverting the right resources, in order to improve employment opportunities for residents and help prosperity and growth of cities,” she said.

The rate of businesses nearing failure ranged from 7% to 12% within large cities. This range was considerably wider in smaller cities. For example, in affluent Hod Hasharon only 5% of businesses were on the brink of failure, while in the Beduin city of Rahat, the rate was 24%.

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