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.



The local dimension to SME and entrepreneurship policy in Israel

This chapter considers the extent to which SME and entrepreneurship policy actions are adapted to differing local conditions in Israel and the role of regional policy and local government authorities in SME and entrepreneurship development. The national government’s regional policy offers capital investment incentives to encourage mobile industrial investment to locate in the under-developed northern and southern regions of the country, but could do more to support entrepreneurship and innovation and to build local supply chains and clusters. Local government authorities in Israel have an influence on SME and entrepreneurship development through supporting the availability of appropriate sites and premises, simplifying local business regulations and supporting SME access to local public procurement. However, most are very small, and lack budgets and professional capacities for SME and entrepreneurship development. Government can support the local level through capacity-building activities in these areas and by encouraging inter-municipality co-operation.



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