A never-ending battle: 53 per cent of small and micro business owners report a decline of more than 50 per cent in business revenue since the war.
For 56% of them, it is a business that is the main or only source of income. At the same time, most of them choose to continue the business with certain adjustments. This is according to a study conducted by the "Yozmot Atid" association, which accompanies women in the development and establishment of micro and small businesses. The study was conducted in December among 750 businesses, through Adva Research and Development.
As for the average income until the war, about one-fifth (21%) of them reported an income of up to NIS 2,000 a month; 22% reported an average monthly income of NIS 5,000-2,000; 23% reported an income of NIS 8,000-5,000 per month; 17% reported an average monthly income of NIS 11,000-8,000; Twelve per cent reported an income of NIS 12,20-000,11 per month, and five per cent reported an income of more than NIS 000,5 per month.
Despite the dramatic decline in business revenue, only 2 per cent are considering closing the business, and 8 per cent are considering freezing it for the near future. 38 per cent choose to manage it with certain adjustments, and about 53 per cent continue to manage it as usual. 44% believe the business will recover within a year.
The study also examined the nature of the damage to the business: 37% responded that they do not know how to operate the business in the current situation. 31 per cent are unable to motivate themselves to operate the business, 21 per cent responded that the business is irrelevant to the combat situation, and 11 per cent responded that they have lost customers due to relocation, or that they do not have the equipment and conditions to operate the business.
IDF forces in ground operations in the Gaza StripIron Swords 2023, photo: IDF Spokesperson
A dark shadow over business
According to Tzofit Gordon, CEO of Yozfit Atid, "The past few years have cast a dark shadow over businesses. Corona, cost of living and now war. This is a series of destructive business circumstances, especially for the small businesses of one employee.
"Women make up more than 60% of the group of about 200,000 micro and small business owners whose business turnover is NIS 300,200-<>,<> a year. Most of them are single mothers who managed to establish a business on their own as a source of income, despite barriers of education, culture, age, language and more. These women are the first to be hurt but the last to be heard, they are the transparent women of Iron Swords. Without comprehensive accompaniment and financing of the necessary adjustments, the business will not survive, the source of livelihood will be lost, and unemployment, poverty and reliance on state allowances will take their place."
Tzofit Gordon, Photo: Q Elite beauty
As already mentioned, many self-employed women faced a large drop in income during the war. Elisheva Shuk (28), a Haredi woman from the Jerusalem area, married and mother of four, owns an advertising and digital marketing business for businesses from the general Haredi sector. She says: "The business has existed for two years. Before the war, I was in really good shape. I signed a very big contract and felt at my peak. Then came October 7. At first you don't care about money or anything. I live near an Arab village and there were constant warnings of infiltration. Slowly, I received messages from customers that they were canceling contracts because their businesses had collapsed. The first thing you lower is the marketing budget, because there's nothing to market.
"We don't abandon the wounded"
"At the end of October, I found myself without a business and without a livelihood, and I volunteered to write content for advocacy. My husband works, but that's the main income at home. I have no savings, everything was invested in the business and it got to the point where it was hard to cope with the many expenses, which include rent, food and more. At first I thought about closing the business and becoming an employee, but it's also not simple."
On expectations from the state, she says: "I have not yet received compensation from the state. I expect it to support small businesses as well. The 1,000 or 3,000 shekels they gave is a joke compared to the big businesses."
Bar Kedrnell, a married mother of three from Tel Aviv, owns the business "Laughter Plus". She says: "I started the business following in the footsteps of my son, who was diagnosed with autism spectrum.
Bar Kadarnell, Photo: Noy Sol Zohar
We do laughter workshops all over the country in order to make people happy. The business has been around for eight years and we have a lot of orders from groups and organizations. Due to the situation and because most of them are now mobilized, the activities that were closed for October were canceled. By December, we experienced a 100% decline, and from December it was a 90% decline. I am very optimistic because we are with Chofetz Chaim, and already now I see that people need togetherness and laughter, of course with adjustments.
It doesn't straight back to big events. I actually like the part about the friends who meet at home in Ashkelon to celebrate the New Year. In addition, Yozmot Atid helps me through a mentor, and we are releasing a new product, which is a set of cards and games for groups and families, in order to bring joy of life to family gatherings, even in the safe room."
Elisheva Shuk,
The self-employed organizations are also critical of the compensation outline. According to attorney Roy Cohen, president of Lahav – The Chamber of the Self-Employed in Israel, "The Finance Ministry has not yet internalized that a war does not end in one day and that the wounded are not abandoned in the field.
Unfortunately, the decision not to continue the compensation framework in industries such as tourism, culture, events, productions and entire areas beyond 7 kilometers that have not resumed operations is a death sentence for these businesses. We will fight the Finance Committee to change the Finance Minister's decision, which shows a lack of connection with the reality on the ground."
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