Support Us  Blog Contact Us עברית
The Jerusalem Institute for Israel Studies
Home    News & Events   JIIS Bulletin - April 2012
News & Events
Updates
Presentations
Events
Articles
Videos
News Database
Newsletter
JIIS Bulletin - June 2015
JIIS Bulletin- September 2014
JIIS Bulletin - July 2014
JIIS Bulletin - March 2014
JIIS Bulletin - September 2013
JIIS Bulletin-Statistical Yearbook
JIIS Bulletin - May 2013
JIIS Bulletin-Remembering Barsi
JIIS Bulletin - December 2012
JIIS Bulletin - September 2012
JIIS Bulletin - July 2012
JIIS Bulletin - May 2012
JIIS Bulletin - April 2012
JIIS Bulletin - February 2012
JIIS Bulletin - December 2011
JIIS Bulletin - September 2011
JIIS Bulletin - July 2011
JIIS Bulletin - June 2011
JIIS Bulletin - March 2011
JIIS Bulletin - January 2011
JIIS Bulletin - November 2010
JIIS Bulletin - October 2010
JIIS Bulletin - April 2012
JIIS wins Trade Ministry grant to probe SME policy
It is well known that small- and medium-sized enterprises (SMEs) contribute to economic growth and employment. And SMEs that demonstrate innovation have an even greater influence on the economy. And yet SMEs, in Israel as elsewhere, find it difficult to fundraise and maintain cash flow at various stages of their development. This problem is especially acute for companies whose assets are non-tangible, in particular those that are largely reliant on innovation and human capital. "The high uncertainty and lack of security mean that banks and other funders often view SMEs as risky borrowers," says JIIS researcher Reut Marciano. She explains that in some sectors, particularly those heavily dependent on technology, alternative sources of funding have developed – such as venture capital funds and venture capital investors. "The government identified the need for creating sources of funding for the high-tech sector in Israel and in the 1990s established Yozma [Initiative], which was aimed at promoting the creation of venture capital funds locally." The funds established following the program also assist SMEs in the field to create business networks and activities internationally. 

Marciano and her colleagues Eitan Bluer and Dr. Dan Kaufmann, head of JIIS' Economics Unit, in collaboration with Ben-Gurion University of the Negev, drafted a research proposal to identify local requirements for public engagement in private equity funds and develop a model for such engagement. "The overarching goal is to expand the funding pool for the economic growth of sectors that, to date, have not received the necessary investment." In March the proposal was approved by the Small and Medium Enterprises Authority in the Ministry of Industry, Trade and Labor. Among other aspects, the study will identify the limitations of existing financial instruments, analyze the relevant public policies and suggest new policy approaches that could overcome at least some of today's market failures. 

Previous
Advanced Search
© All rights reserved to The Jerusalem Institute for Israel Studies Privacy Policy Consulting by InTv.co.il בניית אתרים ICS