After three years of contraction, the number of small- and medium-sized businesses (SMEs) is expected to rise in 2004. According to figures from the Authority of Small and Medium-Sized Businesses, more than 40,000 new enterprises will be opened this year, higher than the number of small businesses that will close by the end of 2004.
This is a reverse of the trend of the period 2001-2003, when some 45,000 businesses on average closed during each year and only 37,000 enterprises were started. There are some 385,000 (SMEs) operating in Israel today. This accounts for 96.5 per cent of all businesses in the private sector and almost 70 per cent of all employment in the private sector.
Small businesses are companies that employ up to 50 workers and which have turnover of up to US$5 million a year. Medium-sized businesses employ up to 100 workers, and have revenues of up to US$20 million a year.
Source: Haaretz
