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The owners of small businesses are the transparent victims of the war - voila! money

2023-12-03T16:10:35.033Z

Highlights: The owners of small businesses are the transparent victims of the war - voila! money. With compensation of only a few thousand shekels, small business owners may fall into poverty and unemployment. The state has come to its senses and built a grant structure, but for the "transparent" ones, the amount of grants they are expected to receive is small to non-existent. Much more needs to be done to build immunity for them to today's situation, writes Atid Initiatives CEO Tzofit Gordon.


With compensation of only a few thousand shekels, small business owners may fall into poverty and unemployment


Woman Working in a Small Business/ShutterStock

Only three years have passed since the coronavirus, and Israel is on the verge of a new economic crisis, this time due to the war in the south. Just this week, the Central Bureau of Statistics reported that about 40% of businesses in the south are, even after seven weeks in the war, in a state of closure or minimal employment. The data also show that 1 in 5 small businesses (with up to 50 employee positions) reports a severe hit of more than 76% to November's revenue compared to the rate in large businesses (with more than 100 jobs), where about 1 in 10 businesses report such a severe impact.

Once again, the first to pay the economic price are the hundreds of thousands of small businesses, many of which are owned by women. And not only that. In Atid Initiatives, for example, which has accompanied tens of thousands of women with micro and small businesses since its inception, more than 60% of them are single mothers who managed to start a business on their own, and now find themselves facing a growing economic slowdown, facing customers who stopped their activity because they too are experiencing firsthand the ravages of the war in the economy. It is the sector that is often the first to be affected, but also the last to be heard, the transparent sector.

The state has come to its senses and built a grant structure, but for the "transparent" ones, the amount of grants they are expected to receive is small to non-existent. In fact, the existing framework assumes that if the business is small and the turnover is small, then the grant must be small. Without taking into account that small businesses are actually the businesses of those whose business is sometimes an exclusive livelihood, that there is no ability to repair what has been damaged with such small sums, that the business is often a solution to barriers to education, age, culture, language and more, and that the significance of a small grant is in fact doomed to unemployment, state allowances and the loss of a significant group to the Israeli economy.

Tzofit Gordon, CEO of Atid Initiatives / Niri Gatmon

Take, for example, a business owner with an annual turnover of NIS 120,10 a year, that is, NIS 000,3 a month. According to the new outline, the same business owner will receive only NIS 300,25, whether she has experienced a 80% decrease in turnover or an <>% decrease. Makes sense? According to the Ministry of Finance, it turns out so. But the business owner will barely be able to pay the monthly bills and the food she bought at the supermarket. There is certainly nothing to talk about the rent or mortgage.

The state cannot absolve itself of responsibility towards these women, who own these small businesses, by granting grants in a small and insignificant amount. Much more needs to be done to build immunity for them to today's situation, and as the war continues, sticking a Band-Aid on a bleeding wound will not stop the bleeding, will not prevent the chronicle of predictable death for these businesses, and will create more poverty for Israeli society, more poor boys and girls, more gaps that will be very difficult to narrow later.

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The Finance Committee approves the compensation outline. Compensation of NIS 3,300/Danny Shem Tov, Knesset Spokesperson's Office

In addition to the right action of the grant, it is necessary to invest in providing advice to those business owners who were harmed, whether through experts on its behalf or through non-profit organizations, and help them rebuild the business so that it can adapt to the current period. It's a completely different world of values that talks about granting meaningful rods and not about granting allowances.

Thus, for example, business experts can examine the potential of a business whose products or services can reach customers abroad, and help that business do the same retraining it needs, or alternatively divert a physical business to a business of lectures or workshops online, building an informed and accurate conduct for exiting the crisis.

Invisible businesswomen need real help, to wait and not fish, so as not to fall into poverty and with them their entire family, and so that they can continue to be a significant economic force in Israeli society. They want, and we all need to want them, and do everything we can to keep their business thriving. The role of the state is to take care of this in times of emergency. On normal days, they do it very well themselves.

The writer is the Executive Director of Yozmot Atid

  • More on the subject:
  • Iron Sword War
  • women
  • Compensation
  • Small Business

Source: walla

All business articles on 2023-12-03

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