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Introduction |
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The Ministry of Industry and Trade views small and medium-sized
businesses as an important source of economic growth and the creation of
economically stable employment. Small and medium-sized businesses are
defined as businesses employing 1-100 employees.
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The main advantages of these businesses are innovation, flexibility, and
rapid establishment at low cost and dispersion of risk. They provide
employment solutions for specific groups such as women, demobilized
soldiers and new immigrants. They nonetheless suffer from obstacles in
management, funding, and access to information and bureaucracy, which
make it difficult for them to develop unhindered, and operate in the free
market. The Ministry works to remove these obstacles. |
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The Authority for Small and Medium-Sized Businesses in
Israel |
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The Authority for Small and Medium-Sized Businesses in Israel was
established at the initiative of the Ministry of Industry and Trade. The intent
was to create a body, which would formulate policy for promoting small and
medium-sized businesses, and assist entrepreneurs, as well as serve as the
focus for activity in this field and coordinate the work of various bodies
active in this area. The main objective of the Authority is to assist
entrepreneurs in surmounting the obstacles and difficulties facing them.
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The Authority is an independent non-profit organization with representatives
of government, economic organizations and the general public on its
committees and boards. The Authority functions through a national head
office and operates regional field offices in order to ensure that it does
not become yet another bureaucratic hurdle in the path of the
entrepreneur. |
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Functions of the Authority: |
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To initiate and implement government policy to assist small and medium-sized
businesses.
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To create and operate programs of assistance for these businesses. |
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To coordinate between all the organizations involved in promoting this
sector.
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To establish local and regional centers for encouraging small and
medium-sized businesses. |
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To introduce legislation pertaining to small and medium-sized businesses. |
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To implement guidance, public relations and educational programs for the
management of small and medium-sized businesses. |
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To establish useful databases. |
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To create additional funds and vehicles of assistance. |
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To lobby both publicly and privately to eliminate obstacles facing
entrepreneurs. |
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To locate and encourage entrepreneurial potential among specific segments
of the population, such as minorities. |
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To create a positive and supportive growth environment for small and
medium-sized businesses. |
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The Authority is active in the following areas: |
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Centers for Assistance and Promotion of Small Businesses (Masakim)
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Field offices scattered throughout the country carry out the Authority's
fieldwork. These offices offer business people and entrepreneurs a
variety of services to assist them in establishing, managing and expanding
businesses and to help prevent closures.
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Small and medium business people and entrepreneurs can receive the
following types of assistance at these offices: information and direction,
ongoing professional consultation, referrals to sources of funding,
courses, workshops and seminars. The offices also make referrals to The
Ministry of Industry and Trade's business guidance projects.
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Tens of centers are located throughout the country
including
Entrepreneurial Promotion Centers (MATI) and Economic Development Units
of the Jewish Agency.
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Guidance Center
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The Authority for Small and Medium-Sized Businesses
operates a Guidance Center
whose function is to initiate and coordinate educational programs for small
business
management at the national level. Within the framework of the Center,
educational
needs are defined and analyzed, instructional programs are written and
special
instructional aids are developed. These aids include booklets, educational
software
for business management and planning, business games, etc. In addition, a
program
has been developed for a course, which will train small and medium-sized
businesses, how to bid for tenders.
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Information Services
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The success and survival of small and medium-sized
businesses in a competitive
market is often dependent on their access to relevant information. For this
reason
the Authority established an Information Center that gathers and organizes
relevant
information and makes it available to businesses. The following databases are
currently available at the regional offices: tenders, sources for funding,
indexes
and inputs, stages in establishing a business, marketing and business
information, as
well as a database of businesses in Israel and the country's laws and
regulations.
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The Fund for Promoting Small Businesses
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This fund was established by the Ministry of Finance and
the Ministry of Industry
& Trade to assist in the establishment and expansion of small businesses
in all
sectors of the economy. Within this framework the State guarantees loans to
small
businesses as a means of encouraging banks to grant loans to these businesses
and to overcome the problem of insufficient collateral. In lieu of
collateral,
businesses are required to draw up detailed business plans. The Fund
currently
disburses its money through four banks: Bank Discount, Bank Otzar Hahayal,
Mercantile Discount Bank and the World Investment Bank.
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The Authority is also active in other areas including:
research, introduction of the
ISO 9000 regulations in small and medium-sized businesses, Project Spark for
creative management and growth in small and medium-sized businesses, etc.
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For further information:
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The Authority for Small and Medium-Sized Businesses
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Grozenberg St. 14, Tel Aviv 65811
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Tel: 03-5107555
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