Small and medium businesses on the rise despite red tape

This year's report examined gender breakdowns in the sector for the first time, and found that self-employed women comprise only around one fifth (21.8%) of all the self-employed in Israel.

By
February 1, 2016 21:56
1 minute read.
office

Business colleagues [Illustrative]. (photo credit: INGIMAGE)

 
X

Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analyses from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user experience almost completely free of ads
  • Access to our Premium Section
  • Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief

UPGRADE YOUR JPOST EXPERIENCE FOR 5$ PER MONTH Show me later

The number of small and medium enterprises (SMEs) in Israel increased in 2015, despite onerous red tape and bureaucratic hoops, according to a report the Economy Ministry’s Small and Medium Businesses Agency released on Monday.

According to the report, 2015 saw a rise in Israeli SMEs and employees, as well as an increase in their GDP and productivity relative to large businesses.

Be the first to know - Join our Facebook page.


Red tape, however, created “a bureaucratic and regulatory overload.”

Among the regulatory problems noted was a lack of cooperation among regulatory agencies, which prevented good online services for SMEs.

This year’s report examined gender breakdowns for the first time, and found that self-employed women comprise only around one fifth (21.8%) of all the self-employed in Israel, though the rate was slowly rising.

The report also found a gender income gap among the self-employed.

“Despite the fact that there was a rise in income among self-employed women between 2010-2012, they continued to earn only around 60% of the income earned by the men,” the report said.

JPOST VIDEOS THAT MIGHT INTEREST YOU:


Thirty-one percent of SMEs have female owners or co-owners, but just 22% had women as managers.

Over 99% of the businesses in Israel are small and medium-sized –defined as those with 100 or fewer employees – and account for 60% of employment and half of economic output, according to agency director Ran Kiviti.

Such businesses, however, have greater trouble navigating and shaping regulation than their larger counterparts.

“The strength and ability of small and medium-sized businesses to influence state policies, regulation, and politics, is small relative to that of the large businesses, and their ability to grapple with bureaucratic-administrative demands is smaller,” he said.

Economy Ministry Director-General Amit Lang said that greater efforts needed to be made to boost SMEs.

Join Jerusalem Post Premium Plus now for just $5 and upgrade your experience with an ads-free website and exclusive content. Click here>>

Related Content

Workers strike outside of the Teva building in Jerusalem, December 2017
December 18, 2017
Workers make explosive threats as massive Teva layoff strikes continue

By MAX SCHINDLER