Reasons for the Closure of Small and Medium-Sized Enterprises (SMEs) in Israel
Reasons for the Closure of Small and Medium-Sized Enterprises (SMEs) in Israel
The small and medium-sized enterprises (SMEs) sector (5-99 employees) is of great importance to economic growth and employment. This sector employs about 37% of the workforce and is responsible for about 35% of the GDP. However, small businesses struggle to compete with larger enterprises. Due to their size, these businesses face unique barriers, and existing government support programs are not sufficiently tailored to their challenges. Data shows tens of thousands of small and medium businesses close yearly. The research aims to track the reasons for these businesses' low competitiveness and identify the factors leading to their closure. This phenomenon has been extensively studied worldwide. However, a comprehensive study analyzing the reasons for the closure of these businesses in Israel, based on empirical data, has yet to be conducted.
The small and medium-sized enterprises (SMEs) sector (5-99 employees) is of great importance to economic growth and employment. This sector employs about 37% of the workforce and is responsible for about 35% of the GDP. However, small businesses struggle to compete with larger enterprises. Due to their size, these businesses face unique barriers, and existing government support programs are not sufficiently tailored to their challenges. Data shows tens of thousands of small and medium businesses close yearly. The research aims to track the reasons for these businesses' low competitiveness and identify the factors leading to their closure. This phenomenon has been extensively studied worldwide. However, a comprehensive study analyzing the reasons for the closure of these businesses in Israel, based on empirical data, has yet to be conducted.
