SME and Entrepreneurship Policy in Israel 2016

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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.




This publication presents the OECD country review of small and medium-sized enterprise (SME) and entrepreneurship policy in Israel. It forms part of the programme of work of the OECD’s Working Party on SMEs and Entrepreneurship, served by the Secretariat of the Centre for Entrepreneurship, SMEs and Local Development. The report is part of a series of country reviews of SME and entrepreneurship policies undertaken by the OECD in countries that express an interest in co-operating on an external assessment of their policy challenges. Recently reviewed countries include Canada, Italy, Mexico, Poland, the Russian Federation and Thailand. The present review was requested by the Israeli Small and Medium Business Authority on behalf of the Israeli government.


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