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SME and Entrepreneurship Policy in Israel 2016

image of SME and Entrepreneurship Policy in Israel 2016

This report examines Israel’s performance in stimulating SMEs and entrepreneurship and makes recommendations for government policy. A dual economy has gradually emerged in Israel, in which high rates of successful technology-based entrepreneurship contrast with low average productivity and growth in traditional SMEs. Israel has excellent framework conditions and programmes for technology-based start-ups and SMEs in areas such as R&D, high-level skills generation and venture capital finance. These strengths need to be maintained. At the same time, more needs to be done to spread success to all types of SMEs and all groups of the Israeli population. This report recommends a range of new and expanded interventions for example in access to credit, broad innovation, workforce skills development, management support and entrepreneurship education. It recommends underpinning these actions with a national SME and entrepreneurship policy strategy and new arrangements for inter-ministerial co-ordination.

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Assessment and Recommendations

This chapter summarises the main findings of the OECD’s review of SME and entrepreneurship policies in Israel. It identifies high start-up rates and a successful high technology sector but low productivity and innovation in traditional SMEs and uneven participation in entrepreneurship across social groups. Policy challenges and recommendations are presented on improving the business environment, the strategic framework for policy, national SME and entrepreneurship programmes, the local SME and entrepreneurship policies, SMEs and entrepreneurship in the Arab Israeli population, and strengthening medium-sized enterprises.

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