Money cash Shekels currency 521.
(photo credit: Reuters)
Business confidence in Israel and some of its fellow high-growth economies has
dropped significantly over the past six months, according to the latest Regus
Business Confidence Index.
The biannual index, which is based on the
views of more than 24,000 senior business people in 92 countries, found that
despite growing pessimism, levels of business confidence in rapidly growing
economies still remain well ahead of those in mature economies.
Israel, confidence levels dropped from 116 points in April to the benchmark
average of 100 in October.
Fifty-eight percent of Israeli businesspeople
said their company revenues have risen in the past year, compared to just 9% who
reported declines. The remaining 33% said revenues stayed flat in the past
Forty-nine percent said company profits rose in the past year,
while 9% said they declined.
Three-quarters of Israeli respondents said
they expect their company revenues to increase in the next 12 months, while 7%
said they expect to see a decrease. But when asked about the general picture,
only 18% said they believed Israel’s economy was advancing strongly. Four
percent said they believe economic recovery will advance strongly by the end of
this year, 31% said in the first half of 2013 and 47% said in the second half of
They gave mixed responses to the question of how they feel about
government measures to stimulate economic growth: 49% said they believe the
government is doing a good job encouraging businesses to invest and
The survey asked respondents to select the three biggest challenges
faced by start-up companies in Israel.
Cash-flow received the most votes,
with 71%, followed by finding customers, 50%, marketing and promotion costs,
40%, and the cost of employing customer-service assistants, 23%. Only 2% thought
startups have problems finding a suitable work location or office space for
The respondents were asked to select the top three
measures the government should use to help new businesses.
was the most popular answer, with 79%, followed by low-interest loans, 63%, and
free consultancy services and export credit guarantees, both 23%.