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No, 2021 really will not be better - Walla! Business

2021-01-06T22:19:43.771Z


Unprecedented damage to donations to non-profit organizations, countless applications for insolvency, the end of unemployment benefits and a return to environmental pollution. Four executives tell us why our future is far from rosy


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No, 2021 really will not be better

Unprecedented damage to donations to non-profit organizations, countless applications for insolvency, the end of unemployment benefits and a return to environmental pollution.

Four executives tell us why our future is far from rosy

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Walla!

Business

Thursday, 07 January 2021, 00:00

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In the video: Edelstein calls for a full closure (Photo: GPO)

2020 was not an easy year, and when it came out, everyone sent her a variety of juicy "greetings".

But does that mean 2021 will necessarily be better?

Not everyone thinks so.

Some CEOs think that before it gets better here, it will continue to be much, much less good here.

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Eli Cohen, CEO of Pethon Lev

Eli Cohen

"The year 2021 predicts unprecedented damage to donations to aid organizations that will come from commercial entities and individuals. The aid organizations' estimate is a 20% -40% decrease in donations over the current year. Large public companies used to donate regularly and distribute their surpluses for aid seekers." "Saving" a social budget that is transferred to a donation.



"In the face of the corona crisis, which has put a change in the eyes of every CEO, businessman and entrepreneur - the damage to big business has immediately led to a massive and extensive cut in future donations.

The donation budget is the first to be cut.

This year, due to the corona plague and the wave of losses in the economy - those large and powerful companies will not have extra money to contribute.

The alarming forecast is also parallel regarding donations coming from private individuals.



"Once the sickness payments stop and people understand that they themselves are in a daily war for survival - they will save every penny and thus a great harm will be done to the aid organizations, which are supported and rely in most of the budget on donations only.

In 2021, the corona may disappear from the world, but as a result, are the aid organizations facing severe damage? "

Adv. Hayut Greenberg, who specializes in crisis management, corporate recovery and insolvency

Adv. Hayut Greenberg

"The forecast for 2021 is not optimistic to say the least. We are expected to see a tsunami in the coming year of filing for insolvency proceedings against companies and individuals. The corona crisis may have shaken the entire Israeli economy, but the Israeli economy came to Corona when it was sick, addicted to credit. Satisfactory economic and business thinking beforehand.



"According to the Ministry of Justice, in the first quarter of 2019 4,401 bankruptcy applications were filed, and in the first quarter of this year (before the outbreak of the corona crisis and after the entry into force of the new insolvency law) 6,286 applications were filed. Bankruptcy.

The corona crisis caused a collapse, which would most likely have come anyway.

Business owners thought they could cover for losses during the holidays, took out more loans, deferred payments to suppliers and some did not even transfer payments legally to employees.

They soon discovered that the income during the holidays covered about a quarter of the expenses (depending on the type of business).



"The loans that business owners took were largely encouraged by the state and the banking system that provided a state-guaranteed loan fund for small and medium-sized businesses. These blurred the damages and losses, the business owners did not feel the cash flow damage, went into economic turmoil and just postponed the known end. State-guaranteed loans only deepened the debt pit that tens of thousands of businesses fell into.


At the end of November, the Ministry of Justice announced that there was a 41% increase in the number of bankruptcy applications filed in 2020 to mid-November compared to the same period in 2019. The



numbers are expected to rise at a dizzying pace, even in light of the fact that the "Union of Execution Cases" institution passed away with the entry into force of the Insolvency Law in 09/2019 and, consequently, the number of applicants (the United) Insolvency proceedings are expected to increase significantly close to the collection actions taken by the various banks or creditors.

Insolvency must be the last resort for a business owner, in this sense, in order to rehabilitate the entire economy, it would be good if businesses that do not know how to deal with a major crisis close down.

A healthy business needs to know and prepare itself for a rainy day, dealing with crises big and small alike.

It seems that a proper solution that may prevent or reduce the snowball or slightly straighten the slope is to facilitate arrangements with the banking entities in such a way that the effort to avoid insolvency proceedings will be common. "

Nira Zimels, CEO of a self-organized organization that operates among underprivileged populations

Nira Zimels

"These days we are seeing the light at the end of the tunnel of the corona crisis in terms of health and it is clear that within a few months the State of Israel will be elsewhere medically, given the progress of the vaccination campaign. However, economically and in the world of employment, the third closure A and deceive additional financial difficulties on business owners.



"The economic and employment crisis will accompany us throughout 2021 and is still far from over. Studies show that low-opportunity and sectoral populations are the first to be affected and the last to emerge from the crisis, which could last 3-5 years. The minority and type of jobs expected in the coming years At the same time, many job seekers prefer to sit at home and receive unemployment benefits, instead of looking for jobs now and making efforts to develop professionally and prepare themselves for work.Many of them do not see the price they may pay when summer 21 "When the possibility of receiving unemployment benefits ends, the competition for job vacancies will be very great and the chances of finding a job will be small. There is also an emotional aspect here - we know that the farther people go from the labor market, the harder it is for them to return to work. "Do not wait for the end of receiving unemployment benefits!".



"I call on the state and the economy to 'give a shoulder' to the world of employment in 2021 by producing additional professional training, rewarding employers who return workers, and encouraging the job-seeking public to move to Haifa.

Q work.

Additional options and training must be opened up to create a horizon to emerge from the crisis and hope for the Israeli economy, also in the geographical and social periphery.



"In conclusion, the responsibility for building resilience and returning to the labor force depends on society as a whole: government, local authorities, employers and the individual himself. Everyone must now invest in developing and strengthening human capital. I anticipate that unlike other areas, the employment crisis is the last to be resolved." Later in the year, as long as the economy is fully developed and solutions are provided to job seekers through retraining and professional training, job opening and the incentive for employers. "

Riva Waldman, director of the Center for Environmental Education in Hiriya, Association of Cities discusses sanitation

Jam Waldman

"The corona has done good service to environmentalists. For example, the corona has brought awareness to the importance of available nature, open spaces and parks near the home. We understood how vital our health is to stay in the open air. Education systems have also internalized the need for this and gradually translated it into creative ideas In open spaces, we have abandoned the race for grades and achievements for a period of time, in favor of creativity in education, learning in small groups, using technologies, and I hope educators will continue to demand small classes and opportunities for outdoor learning. Outdoor learning creates opportunities to know nature, and want to preserve it. Look what happened in the summer months? We stayed in the country and went out en masse to the tourist and nature sites in the country. What did we see? We saw the sites we love, but we also noticed the load we produce on the infrastructure one of which is piles of garbage and garbage.



" And on the consumption and leisure habits of the average Israeli, however, in a parallel and seemingly unrelated universe we have been inundated with frightening information about the need to maintain hygiene and beware of contact with objects infected with viruses.

What did we do?

We wanted to buy: masks, large alcohols for the kitchen and small alcohols for bags, disinfectant wipes with and without bleach, gloves and other gloves and all these alongside well-known and likable products that were more popular during this period: cups, plates and a lump sum.

What will happen the day after the corona?

What will prevail?

Addiction to disposable plastic utensils and drifting into over-sterility or our appreciation for every piece of open space and the desire to see it clean of wipes and plastic spoons?

I try to be optimistic and see the glass half full where possible.

It seems recently that local authorities such as the Eilat Municipality and other authorities that have beaches in their area have recently banned the introduction of disposable utensils to the beach, and authorities that banned the use of plastic in kindergartens are returning to do so after recovery from the first wave.



"It was even recently announced that the Ministry of Environmental Protection will support the purchase of dishwashers to make it easier for educational staff to wash dishes. I believe the public sector will continue to do what is required, but will we, the consumers, who have become accustomed to overpacking, require it?" "Shouldn't excessive boxes of cardboard be required on every bottle of perfume? It will be more difficult, and in my opinion a change in consumption habits will not overwhelm the public and will require the help of regulation that will include restrictions and laws in this area as well."

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Source: walla

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