Introduction

Small and medium-sized business are considered, according to common perception in developed and developing states, an important source for the growth of the economy and for the creation of stable and, from the economic point of view, healthy places of employment. In Israel, also, therefore, the Government view these businesses as one of the tools for achieving its economic targets and one of the central layers in the Israel economy and society.

The chief advantages of small and medium-sized businesses are they are innovative, flexible, and quick to set up at a low cost and with dispersed risk. They are likely to provide an appropriate solution to problems of employment in peripheral areas, as well as among particular populations, such as minorities, women, demobilised soldiers and new immigrants. However, small and medium-sized businesses suffer from the existence of barriers in such areas as finance, management, access to information and problems of bureaucracy, which impedes their ability to cope in the free market and hinders their development and in utilising their potential.

The Ministry of Industry and Trade and the Israel Small and Medium Enterprise Authority act for the removal of these barriers and the creation of the appropriate environment for establishing these businesses and for their development.

The aim of this publication is to bring to the attention of the public of entrepreneurs and owners of small and medium businesses the principal tools which the Ministry of Industry and Trade and Israel Small and Medium Enterprises Authority and other entities place at their disposal. These tools are presented herein in summary form, and it is important to point out that they are periodically updated.

To receive further and updated details, enquiries may be made to any one from the list of Centres for the Promotion of Entrepreneurship (CPEs), appearing in this booklet, or to the Israel Small and Medium Enterprises Authority, Telephone: 03-7968100, Fax: 03‑5107557 or on the Internet site: www.asakim.org.il