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.



SME and entrepreneurship performance in Israel

This chapter investigates SME and entrepreneurship characteristics and performance in Israel in comparison with other OECD countries. It presents the numbers of SMEs, their employment and value-added contributions to the economy, and their export and innovation levels and shows breakdowns by SME sectors and size bands. It also explores entrepreneurship behaviours and attitudes in Israel by population group. There are several clear areas of excellence in Israel’s SME and entrepreneurship activity, including a high business creation rate and a large share of high-impact enterprises. At the same time, there are relatively low numbers of SMEs and low levels of SME productivity, particularly in manufacturing. There is also a strong dualism whereby very productive high-technology SMEs and start-ups operate alongside a much less efficient and relatively underdeveloped traditional SME sector. Entrepreneurship rates are also much higher among men than women.




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