MINISTER OF INDUSTRY & TRADE
Dear Friends,
I welcome you to the 22nd international congress of Small Business here in Tel Aviv.
During recent years the awareness and recognition of the role and contribution
of Small Business in the economy has grown considerably.
while large enterprises are the nation's shoulders and the ground for
technological and exports growth, small enterprises are its backbone and ensure a steady
growth in employment and future economic growth.
The main advantage of small business are creativity, flexibility and spread of risk capital.
There are disadvantages, some due to the difficulties in providind the necessary guarantees for loans and other due to the lack of adequate background in managment.
The two principal means we have developed to overcome those disadvantages were:-the establishment of special consultancy and tutoring frameworks in order to assist existing enterprises in difficulties or instruct and create a solid managment basis for new enterpreneur;-the establishment of fund run jointly by six major banks with state guarantee for 30% of the total and up to 80% of each individual loan. The fund amounts presently to $ 200 million. Over 2000 applications have already been approved.
Since the gvernment's ultimate goal is to encourage and promote economic growth, and in view of the tremendous contribution of the small business sector to creation of new jobs and economic growth, we have established the small business Authority in 1993 as a means for promoting this goal. Its role is to form policies for encouraging small business, entrepreneuship and related activities, to coordinate the operation of the various agencies in this sector and over all, to assist entrepreneurs and small business owners in overcoming the obstacles and difficulties impending their success.
The Authority operates as a national center and as headquarters for coordinating the activities of regional centers that function as independent entities and supply direct guidnace, consultancy, tutoring and assistance.
The Ministry of Industry and trade also grants direct support to small and infant businesses via its framework for industrial incubators , a framework that is managed by the office of the chief scientist and also contributes to the successful absorption of new immegrant scientists and engineers.
For the past four years, the Israeli economy has been exhibiting a healthy growth of over 5% per year. Exports have increased annualy by 11-13% mostly to the new markets in Asia and Eastern Europe. Israel is now bracing itself to become a modern technological center with advanced infrastructure and most advanced business amenities while preserving and enhancing its ancient biblical and historic heritage.
The state of Israel is now on the threshold of a new era. After many decades filled with conflict and bloodshed, peace will turn the whole region into a flourishing and prosperous oasis. In the wake of the peace process, our relations with other countries in the world flourish and new opportunities abound.
The Arab Boycott that used to be a deterrent to involvement of many foreign companies in Israel lost its drive and influence and is practically extinct. Israel has now become an attractive investment target for an increasing number of multinational companies.
I believe this confrence is an excellent opportunity for you to meet with counterparts from other countries and to learn from each other. It will assemble together people from the government, the academy, the business community, the financial institutions and trade organizations that are all actively involved in promoting entrepreneurship and small businesses. This is an appropiate time for meeting new people and perhaps acquire new friends or new business partners.
I wish all the participants a successful and pleasant congress with fruitful exchange of ideas, insights and experience in a stimulating atmosphere.
Micha Harish
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